Causeway From Saudi Arabia to Bahrain to Reopen in Late July

(Bloomberg) --

The roadway linking Bahrain to Saudi Arabia is expected to reopen on July 27, Asharq Al-awsat newspaper reported citing people familiar with the matter, ending a costly closure introduced to stop the spread of the coronavirus.

The King Fahd Causeway shut on March 7 as part of the precautionary measures implemented by Saudi Arabia.

Bahrain’s tourism revenues have fallen by 4 million dinars ($10.6 million) a day during the pandemic, according to a report by the Bahrain Tourism & Exhibition Authority.

That’s exacerbating an economic downturn also fueled by the fall in oil prices. S&P Global Ratings forecast Bahrain’s economy will shrink 5% this year, although it said government stimulus measures should provide some support. The ratings company expects a rebound in 2021 as crude prices recover and regional activity increases.

Bahrain, the smallest among economies of the six Gulf Cooperation Council members, has the added protection of a $10 billion bailout package secured from its regional allies in 2018.

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