DUBAI, Reuters – Bahrain has announced that it will build five offshore cities as well as tourism projects. It also plans to develop trade and transport infrastructure under an economic growth strategy and fiscal balance plan.

An announcement details the broad strategic projects plan, which was first announced by the Gulf state on Oct. 31 and is expected to catalyze more than $30 billion in investment. The source of the funding has not been disclosed.

The five cities planned off the coast of Fasht al-Jarm at Suhaila Island and Fasht al-Azem are the most important. This island state, which has a population around 1.5 million, expects that its urbanized areas will grow by 60%.

Khalid bin Abdulla Al Khalifa announced that the infrastructure projects are a 109km Bahraini Metro system, 22.5km road, and an upcoming second causeway to Saudi Arabia.

Bahrain had delayed its plans to address the financial crisis by announcing last month the new fiscal and growth plan. The target of zero deficit was pushed back two years, to 2024 instead of 2022. Also, the value-added taxes were increased to 10% from 5%.

According to the International Monetary Fund, Bahrain’s debt rose from 102% in 2019 to 133% by last year. Kuwait, Saudi Arabia, the United Arab Emirates and Bahrain were granted a $10 billion assistance package in 2018.

These new projects are designed to attract more visitors. They include tourist destinations and an exhibitions center that is the biggest in the area around the Bahrain International Exhibition and Convention Centre.

Plans include an aluminum industrial area near the current Aluminium Bahrain (Alba), plant, which houses one of the largest global aluminium smelters. A commercial, manufacturing, and logistic zone was also created in partnership with America.

The $30 billion plan includes an existing program that will modernise the Bahrain Petroleum Company’s (Bapco), and increase its capacity to refine oil from 267,000 barrels to 380,000 barrels daily.