Economy of Bahrain

In 2001, Bahrain’s GDP, calculated at purchasing power parity of currencies, amounted to 8.4 billion US dollars, the volume of GDP per capita was 11.614 thousand dollars, real GDP growth was 5%, and inflation was 0.5%. The share of Bahrain in the world economy is insignificant – less than 1%. Labor resources 299 thousand people (2001). Most of them are represented by immigrants (60%). Unemployment 16.5% (2001).

Sectoral structure of the economy in terms of contribution to GDP in 2001: agriculture 0.7%, industry 45%, services 54.3%. The structure of GDP in terms of employment was distributed as follows: 79% of the population is employed in industry, commerce and the service sector, 20% in state structures, and 1% in agriculture (2001).

According to cheeroutdoor, the main industry is oil and gas, which provides the production of approx. 25% of the country’s GDP, 60% of the state budget and 60% of foreign exchange earnings from foreign trade operations. Currently, the industry is fully controlled by the Bahrain Petroleum Co. (BAPCO) oil and gas state concern. The country has insignificant oil reserves, which are on the verge of exhaustion. Bahrain’s proven oil reserves were per horse. 2001 130 million barrels On average, Bahrain produces 187,000 barrels per day, of which 42,000 are produced from domestic fields and 145,000 are produced from the Abu Safa field, owned by Saudi Arabia, which in 1996 transferred the field to Bahrain for perpetual use. Oil refineries and oil refineries of BAPCO operate mainly on imported oil, coming through the underwater pipeline Bahrain-Dammam (Saudi Arabia). In 2002 Saudi oil imports were 220,000 barrels per day. In addition to oil, Bahrain has large reserves of natural gas (92 billion m3, 2001), which has been extracted and processed since 1979 by the Bahrain National Gas Company (BANAGAZ). The percentage of gas utilization in Bahrain is considered the highest among the Arab oil-producing countries (over 90). Most of

produced gas, both natural and associated, (8 billion m3 per year) is sold on the domestic market, where it is used as a process feedstock for the petrochemical industry, as fuel for BAPCO refineries, power plants, and an aluminum plant (ALBA).

Among other branches of industry, the aluminum and shipbuilding industries have been widely developed. The Bahraini ALBA aluminum plant is one of the largest aluminum production enterprises in the world, its production capacity is 509 thousand tons per year. The country’s ship repair industry is represented by the Arab Shipbuilding and Ship Repair Company (ASRY). The world’s largest dry dock operates in Bahrain, which is capable of receiving supertankers with a displacement of 500,000 tons.

14.2% of Bahrain’s land is suitable for agriculture. Agriculture on the islands of the Bahraini archipelago has long been an oasis. Dates, citrus fruits, bananas, figs, pomegranates, almonds, walnuts, and pistachios are grown in Bahrain. From garden crops, sweet potatoes, tomatoes, eggplants, onions, and garlic are grown. Sheep, goats, zebu-like cows, donkeys, camels, thoroughbred Arabian horses, and poultry are bred. Bahrain imports most of its food, while 75% of the country’s needs for vegetable products and 50% for dairy products are met on its own. Due to the environmental pollution of the waters of the Persian Gulf, marine fisheries in Bahrain are poorly developed. Pearl fishing is carried out, which is currently actually left to its own devices.

There are no railways in Bahrain. The total length of motor roads is 3261 km (2000), of which 2542 km (78%) are paved highways and 720 km are dirt roads. Bahrain’s car fleet – 215 thousand transport units of all types (2001). Bahrain’s maritime transport includes 121 vessels with a total displacement of 338,091 thousand tons. The main volume of trade export-import operations is carried out through large national ports – Salman, Manama and Sitra. Salman is the main port of the country, which has 14 deep-sea berths for receiving ships with a draft of up to 9 m. There are warehouses with a total area of 500 thousand m2. The cargo turnover of the port in 2000 exceeded 1954.396 million tons. Manama is the second largest commercial port in the country. The throughput of the port is on average 3 million tons of cargo per year. The average daily rate of unloading is 400 tons, loading is 350 tons. Sitra is a specialized oil port of BAPCO. The throughput of the port is 250,000 barrels per day. The average hourly rate for loading oil products is 700 tons. In 2000, the merchant fleet of Bahrain consisted of 8 vessels (4 bulk carriers, 2 container ships, 2 tankers) with a total displacement of 270,784 thousand tons.

Pipeline transport has been greatly developed. All R. 1990s the total network of oil and gas pipelines in Bahrain amounted to more than 100 km. The longest is the underwater oil pipeline Dammam (Saudi Arabia) – the island of Bahrain – 55 km. In addition to it, there is a developed network of small oil pipelines, through which oil is delivered to BAPCO refineries and oil storage facilities. The length of pipelines for pumping natural gas is 32 km.

Bahrain is an important hub for international airlines. There are 4 modern airports in the country. The main airport of the country – Bahrain International Airport, located on the island of Muharraq, is one of the largest in the Persian Gulf. The landing strip of the airport is 4000 m. In 2000, the airport received and sent 4 million passengers (50% of them are transit passengers) and carried out 60,072 thousand flights. The cargo turnover of the airport in the same year amounted to more than 100 thousand tons.

Bahrain has a modern communication system. In 2001, there were 173.9 thousand fixed telephones, 299.6 thousand mobile phones and 6.928 thousand fax machines in the country. The monopoly of Internet services in Bahrain has been owned by the state-owned telecommunications company (BATELCO) since 1995. The number of Internet users in 2001 was 140 thousand, the number of Internet providers – 3 (BATELCO, Computec and GCC Online). The largest radio station in the Persian Gulf region is located in Bahrain, there is a space communication station operating through 2 geostationary satellites of the Intelsat system (over the Atlantic and Indian oceans).

Bahrain is the largest international financial center. The banking sector occupies the 2nd place in the country’s economy and provides approx. 20% of GDP. The number of employees employed in this area exceeds 4 thousand people. The financial agency of Bahrain occupies a central place in the structure of the credit and banking system. As a central bank, the Financial Agency is a state authorized organization that strictly adheres to the instructions of the government in its work. Capital and reserves of the bank 290.9 million Bahr. dinar, the total amount of deposits is 136 million Bahr. dinar (2000). In addition to the Bahrain Financial Agency, banking structures include: 19 commercial banks, including 2 specialized, 13 Islamic banks, 48 offshore banking institutions, 33 investment banks, 36 representative offices, 5 brokerage agencies, 19 exchange offices.

Up to 60% of the state budget revenues traditionally come from the export of oil, gas and their derivatives. In 2002, Bahrain’s income amounted to 675 million bahr. dinar, spending 835 million Bahr. dinar, a budget deficit of 160 million Bahr. dinar. The external debt of the country at stake. 2000 US$2.9 billion.

The country’s foreign trade balance is positive. The value of exports in 2000 is 5.7 billion US dollars, imports – 4.373 billion US dollars. Main export items: products of the oil and gas sector (60%), aluminum (7%), textile industry products. Main export partners (2001): USA – 25%, Saudi Arabia – 15%, Taiwan – 11%, India – 5%, Malaysia – 5%. Imported: oil (90%), industrial equipment, building materials, food. Import partners (2001): Saudi Arabia – 9%, USA – 8%, Japan – 8%, UK – 6%, Germany – 6%.

Economy of Bahrain