Bahrain Economy
Bahrain is located in the continent of Asia and its capital is Manama, the area is around 770 square kilometers and the population estimated at 1,314,562.
The official language is Arabic with a widely spoken of English, Arid type weather, Two main climatic periods from June to September and from December to March, separated by two transitional periods
April/May and October/November.
The Kingdom of Bahrain is a pioneer in promoting free and open economic policies, most often occupies advanced ratings along free economies parameters being rated the first among regional and Arab countries for the year 2015. Moreover, the Kingdom of Bahrain has been rated amongst the top twenty most free economies in the world graded 18th according to the annual “heritage Foundation“ 2015
Report measuring 186 worldwide countries along four main dimensions : the role of Law, the role of Government, Markets openness , the organizational efficiency.
The Nominal GDP is around $32.8 BN and The Real GDP Growth Rate is around %5.6
The Literacy is almost %94.6 and the Unemployment Rate is around %4.3
The Oil was discovered in Bahrain in 1932, the earliest in the GCC region. And despite having the oil resources as the main stream for national income as it contributes 88.3% of the total country revenues, yet the Government is pursuing a diversification policy towards varied sources of income to lower the sole dependency on Oil and Natural Gas as main sources of national income. Therefore, since the beginning of the 70s’ the Government directed its great effort towards developing other economical sectors among which the Manufacturing Industries came first, besides banking and finance sectors, tourism, real estate, telecommunication and other service sectors. Whereby the Non-Oil sector has increased its contribution to the country GDP reaching %79.60 versus %20.40 for the Oil sector.
Moreover, the Manufacturing Industries and Non-Financial sectors contributed closer stake of 15% for each to the Gross Domestic Product based on Current Prices that is according to the economical indices for the third quarter of 2014.
Despite the unstable worldwide economical conditions and trauma, the Bahrain economy has reasonably maintained its stability facing the global turbulences and crisis, evident in various statistics and reports such as the annual UNCTAD report released in the 24th June 2014 from Manama the Capital, demonstrating the size of Foreign Direct Investments in the Kingdom of Bahrain for the year ended
2013, being increased by 11% compared to FDIs levels for the preceding year of 2012, outperforming the worldwide average standard of 9% as well as the western Asia increase of 8.6% for the same parameter along the same period.
Economic Research Center Furthermore, it’s worth mention that over the time span of 2010 and 2013 (the period of the mentioned
UNICTAD Annual Report), the size of the Foreign Direct Investment has maintained an uphold trend despite unstable global economical conditions, increasing from $156 Million for the year 2010 to
$781Million, and then $891Million reaching $ 1 Billion for the years 2011, 2012, 2013 consecutively, reiterating how resilient the Bahrain economy is confronting upcoming crisis, and exhibiting strong growth catalysts maintaining its position as an attractive investment destination.
On the other hand the classification of “Arab Countries Investment attractiveness” along three stages of economical growth: countries with low growth levels having sole dependency on natural resources as drivers of economy – including 3 Arab countries, and the second group joins countries with efficient and effective economical activities – including 11 Arab countries. And last, the group of high growth countries depending on development and innovation in attracting and stimulating foreign investments – includes Bahrain besides 3 other Arab countries.
Last but not least, Bahrain economy is also occupying advanced levels in fostering business friendly environment and attractive investment context for economic activities, according to the World Bank
2014 ranking report, Bahrain has been classified 46th among 186 countries, a step ahead along the same ranking for the preceding year of 2013, the rating reflects the smooth procedural environment supporting friendly business environment , along the 10 themes of : starting up business, licensing procedures for constructions, electricity, property registration, credits, protection of investors, taxation, trades across borders, executing contracts, and arbitrations.
Economic Research Center