Bahrain, with a population of 1,472,233, is ranked 147th in the world, just behind Trinidad and Tobago. Located in the Middle East, it covers a total area of 790 square kilometers, ranking 168th globally, just below Kiribati.
Bahrain’s economic position in 2022 showcases a GDP of $44,383,297,872.34, ranking 93rd globally, trailing behind Uganda with a GDP of $45,567,304,608.48. The GDP per capita for Bahrain stands at $30,146.93, placing it at the 38th position worldwide, just behind Saudi Arabia with a GDP per capita of $30,447.88.
Despite its relatively lower ranking, Bahrain’s economy exhibits resilience and potential for growth in various sectors, positioning it as a key player in the region’s economic landscape.
What are the economic activities of Bahrain?
- Primary activities: 0.3% of GDP.
- Secondary activities: 39.3% of GDP.
- Tertiary activities: 60.4% of GDP.
Primary Sector of Bahrain
Bahrain’s primary sector, particularly agriculture, thrives despite its small contribution to the GDP. With 10.25% of the land dedicated to agriculture, the country produces a diverse range of products like lamb/mutton, dates, milk, chicken, tomatoes, fruits, sheep offal, eggs, sheepskins, and cucumbers/gherkins. While agriculture only accounts for 0.3% of the GDP, these products play a vital role in the country’s economy, showcasing the significance of the sector.
The favorable climate and natural resources support the cultivation of various crops and animal products, highlighting the importance of agriculture in Bahrain.
Bahrain’s geological diversity contributes to its rich natural resources. The primary sector thrives on oil, associated and nonassociated natural gas, fish, and pearls, driving the economy through exports and employment opportunities.
Bahrain’s oil production of approximately 174,883 barrels per day ranks it 25th in the world. With oil reserves of 124,560,000 barrels, the country holds 0.01% of the world’s oil reserves, further solidifying its position in the global oil market.
Bahrain’s gas production of 21 billion m³ in 2020 solidifies its position as the 31st largest producer globally, further boosting its economic activity.
Secondary Sector of Bahrain
What is the secondary sector or what are secondary activities?
The secondary sector comprises industries that transform raw materials from primary activities into finished goods for consumption. In Bahrain, industrial products include rubber and oil palm processing, light manufacturing, pharmaceuticals, medical technology, electronics, semiconductors, and timber processing. Sabah’s main products are logging, petroleum, and natural gas, while Sarawak focuses on agriculture processing.
Manufactures in Bahrain’s total exports hold a 16.39% share in 2023, indicating their importance but not dominating the export sector. Other industries play a significant role in diversifying the country’s export portfolio.
Tertiary sector of Bahrain
What is the tertiary sector or what are tertiary activities?
The tertiary sector in Bahrain encompasses various services that enhance productivity and cater to needs, such as healthcare, education, banking, communication, tourism, transportation, and security. These activities provide intangible goods like expertise and advice, contributing significantly to the country’s economy and overall development.
Of particular importance, Bahrain’s economy heavily relies on tourism, contributing significantly to its GDP. With 11,061,000 annual arrivals, representing a staggering 7.5131 tourist arrivals per capita, the industry is vital. Popular destinations like Al-Fatih Mosque and Bahrain Fort attract visitors, making tourism a driving force in Bahrain’s economic landscape.
Another example of tertiary economic activity is the mobile cellular sector, with over 2 million subscriptions, supporting technological growth. This connectivity fosters innovation, enhancing digital services and economic diversification.
Military Activities and Economic Sectors of Bahrain
The military is a clear example of many economic activities working together. In the primary sector, resources are extracted for military use, like oil and metals. The secondary sector involves the manufacturing of military equipment, such as weapons and vehicles. The military also provides services in the tertiary sector, while the quaternary sector focuses on research and development for new technologies. Lastly, high-level decision-making in the quinary sector shapes military strategy.
In Bahrain, the military expenditure for 2023 is $1,383.8 million, which is 3.17% of the country’s GDP. The active military force consists of 8,200 personnel. This means there are about 13.5 active military members for every 1,000 people in the country.
Biggest company in Bahrain
Which is the biggest company in Bahrain? The largest is Ahli United Bank, with a market value of $11.43 billion. It operates in the banking industry, which is part of the tertiary economic sector. Ahli United Bank was founded in 1971, serving customers with financial services.
International Trade of Bahrain
Import Activities of Bahrain
Bahrain’s high import activities, accounting for 34.59% of GDP, play a crucial role in meeting domestic demand and driving economic growth.
Bahrain’s key import activities include sourcing iron ore, aluminum oxide, cars, gold, and ships. Major import partners are China (15%), UAE (12%), Brazil (9%), Australia (8%), and India (7%).
Exports Activities of Bahrain
In Bahrain, exports in 2023 totaled $12,406,927,759.43, constituting 27.95% of the GDP. This medium-high percentage underscores the country’s significant reliance on export activities for economic growth and stability.
Bahrain’s export activities are diverse, with key partners including Saudi Arabia, UAE, US, Japan, and India. The country mainly exports aluminum, refined petroleum, iron ore, aluminum wire, and iron blocks.
Bahrain economy challenges in 2024
Bahrain, a growing Middle Eastern island economy, faces challenges in youth unemployment and water scarcity due to reservoir depletion. Efforts to fulfill Economic Vision 2030 continue amidst the goal of becoming a regional finance hub.
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