Bahrain

Economics, Political, and Trade Overview

Source: Feb 10, 2022 Economist Intelligence Unit

Bahrain - In Short.

Overview of Bahrain

In 1783, the Sunni Al-Khalifa family took power in Bahrain. In order to secure these holdings, it entered into a series of treaties with the UK during the 19th century that made Bahrain a British protectorate. The archipelago attained its independence in 1971. A steady decline in oil production and reserves since 1970 prompted Bahrain to take steps to diversify its economy, in the process developing petroleum processing and refining, aluminum production, and hospitality and retail sectors. It has also endeavored to become a leading regional banking center, especially with respect to Islamic finance. Bahrain’s small size, central location among Gulf countries, economic dependence on Saudi Arabia, and proximity to Iran require it to play a delicate balancing act in foreign affairs among its larger neighbors. Its foreign policy activities usually fall in line with Saudi Arabia and the UAE. The Sunni royal family has long struggled to manage relations with its large Shia-majority population. In early 2011, amid Arab uprisings elsewhere in the region, the Bahraini Government confronted similar pro-democracy and reform protests at home with police and military action, including deploying Gulf Cooperation Council security forces to Bahrain. Failed political talks prompted opposition political societies to boycott 2014 legislative and municipal council elections. In 2018, a law preventing members of political societies dissolved by the courts from participating in elections effectively sidelined the majority of opposition figures from taking part in national elections. As a result, most members of parliament are independents. Ongoing dissatisfaction with the political status quo continues to factor into sporadic clashes between demonstrators and security forces. On 15 September 2020, Bahrain and the United Arab Emirates signed peace agreements (the Abraham Accords) with Israel – brokered by the US – in Washington DC. Bahrain and the UAE thus became the third and fourth Middle Eastern countries, along with Egypt and Jordan, to recognize Israel.
Value
Country Full Name
Bahrain
Country Code
BHR
Region
Middle East & North Africa
Income Group
High income
Currency Unit
GDP
34729228723
Population
1701583
Land Area
780
Net National Income Per Capita
15598.96554
GDP per Capita (PPP)
43755.85562

2020 GDP Growth Rate (Current USD)

2020 GDP Per Capita (Current USD)

2020 Urbanization Rate (%)

2020 Total Fertility Rate (Birth Per Woman)

Doing Business Score (100= Most Friendly)

Bahrain - Economic

Economy of Bahrain

Oil and natural gas play a dominant role in Bahrain’s economy. Despite the Government’s past efforts to diversify the economy, oil still comprises 85% of Bahraini budget revenues. In the last few years lower world energy prices have generated sizable budget deficits – about 10% of GDP in 2017 alone. Bahrain has few options for covering these deficits, with low foreign assets and fewer oil resources compared to its GCC neighbors. The three major US credit agencies downgraded Bahrain’s sovereign debt rating to “junk” status in 2016, citing persistently low oil prices and the government’s high debt levels. Nevertheless, Bahrain was able to raise about $4 billion by issuing foreign currency denominated debt in 2017.Other major economic activities are production of aluminum – Bahrain’s second biggest export after oil and gas –finance, and construction. Bahrain continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. In April 2018 Bahrain announced it had found a significant oil field off the country’s west coast, but is still assessing how much of the oil can be extracted profitably.In addition to addressing its current fiscal woes, Bahraini authorities face the long-term challenge of boosting Bahrain’s regional competitiveness — especially regarding industry, finance, and tourism — and reconciling revenue constraints with popular pressure to maintain generous state subsidies and a large public sector. Since 2015, the government lifted subsidies on meat, diesel, kerosene, and gasoline and has begun to phase in higher prices for electricity and water. As part of its diversification plans, Bahrain implemented a Free Trade Agreement (FTA) with the US in August 2006, the first FTA between the US and a Gulf state. It plans to introduce a Value Added Tax (VAT) by the end of 2018.

Unemployment Rate

Inflation Rate

Bahrain - GDP Composition

GDP Composiiton & Value Added of Bahrain

Last Updated: Jan, 2021, Updated For 2020.

Bahrain - GDP, Value Added

Demographics of Bahrain

smallest population of the Gulf States, but urbanization rate exceeds 90%; largest settlement concentration is found on the far northern end of the island in and around Manamah and Al Muharraq
Geographic Location

Middle East, archipelago in the Persian Gulf, east of Saudi Arabia

Races

Bahraini 46%, Asian 45.5%, other Arab 4.7%, African 1.6%, European 1%, other 1.2% (includes Gulf Co-operative country nationals, North and South Americans, and Oceanians) (2010 est.)

Languages

Arabic (official), English, Farsi, Urdumajor-language

Religion

Muslim 73.7%, Christian 9.3%, Jewish 0.1%, other 16.9% (2017 est.)

Dependency & Expectancy of Bahrain

Last Updated: Jan, 2021

Dependency Ratio

Expectancy

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Bahrain - Social Media Briefing

Bahrain - Social Media & Social Commerce

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Politics & Policies of Bahrain

2021 Policies Overview

Updated Coming in March 2021 after our team finish summarizing countries policy.

International Organizations

ABEDA, AFESD, AMF, CAEU, CICA, FAO, G-77, GCC, IAEA, IBRD, ICAO, ICC (national committees), ICRM, IDA, IDB, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM (observer), IPU, ISO, ITSO, ITU, ITUC (NGOs), LAS, MIGA, NAM, OAPEC, OIC, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO

Import of Bahrain

Export of Bahrain

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