Mr. Panos I. Alivizatos
Managing Partner at Value Creation – Alternative
Bahrain Market Overview
The Kingdom of Bahrain is an island located in the Middle East, archipelago in the Persian Gulf, at the east of the Kingdom Saudi Arabia. It has a coastline of 161km and a total land area of 760 sq. km.
The climate in Bahrain is arid; mild, pleasant winters; very hot, humid summers.
Bahrain’s natural resources are mainly oil, associated and it also has natural gas, fish & pearls. It has the 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.
Being located close to primary Middle Eastern petroleum sources, it is a strategic location in Persian Gulf, through which much of the Western world’s petroleum must transit to reach open ocean.
The Kingdom of Bahrain has a diversified economy, and some of the most important business activities of the Kingdom are petroleum processing and refining, aluminum production, hospitality and retail sectors, while it became a leading regional banking center, especially with respect to Islamic finance.
Oil still comprises 86% of Bahraini budget revenues, while there are significant efforts to diversify its economy and to build communication and transport facilities for multinational firms with business in the Gulf. 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.
Other major economic activities are production of aluminum – Bahrain’s second biggest export after oil – finance, and construction. Bahrain continues to seek new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries.
Bahrain’s main economic indicators:
|GDP (purchasing power parity)||: US$ 66.37bn|
|GDP real growth rate||: 2.1% (est.2016)|
|GDP composition, by sector||: Service: 65.9% – Industrial: 33.8% – Agriculture: 0.3%|