Economy Overview
With its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gulf. Petroleum production and refining account for over 60% of Bahrain's export receipts, over 70% of government revenues, and 11% of GDP (exclusive of allied industries), underpinning Bahrain's strong economic growth in recent years. Aluminum is Bahrain's second major export after oil. Other major segments of Bahrain's economy are the financial and construction sectors. Bahrain is focused on Islamic banking and is competing on an international scale with Malaysia as a worldwide banking center. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country's dependence on oil. As part of this effort, in August 2006 Bahrain and the US implemented a Free Trade Agreement (FTA), the first FTA between the US and a Gulf state. Continued strong growth hinges on Bahrain's ability to acquire new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. Unemployment, especially among the young, and the depletion of oil and underground water resources are long-term economic problems.
Agriculture Products
fruit, vegetables; poultry, dairy products; shrimp, fish
Industries
petroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, Islamic and offshore banking, insurance, ship repairing, tourism
Industrial Production Growth Rate
5.2% (2007 est.)
Electricity production
9.233 billion kWh (2006 est.)
Electricity Consumption
8.742 billion kWh (2006 est.)
Electricity Exports
0 kWh (2007 est.)
Electricity Imports
0 kWh (2007 est.)
Unemployment Rate
15% (2005 est.)
Population Below Poverty Line
Household Income or Consumption by Percentage Share
Lowest 10%: NA%
Highest 10%: NA%
Budget
Revenues: $5.418 billion
Expenditures: $4.968 billion (2007 est.)
Public Debt
31.2% of GDP (2007 est.)
Commercial Bank Prime Lending Rate
Stock of Domestic Credit
$10.32 billion (31 December 2007)
Market Value of Publicly Traded Shares
$21.12 billion (2006)
Reserves of Foreign Exchange and Gold
$4.101 billion (31 December 2007 est.)
Debt External
$7.858 billion (31 December 2007 est.)
Stock of Direct Foreign Investment at Home
$13.31 billion (2007 est.)
Stock of Direct Foreign Investment Abroad
$7.72 billion (2007 est.)
Exchange Rates
Bahraini dinars (BHD) per US dollar - 0.376 (2007), 0.376 (2006), 0.376 (2005), 0.376 (2004), 0.376 (2003)
