Country Summary: Bahrain

Bahrain

Country Name: Bahrain

Capital: Manama

Official Visa & Travel Information: Kingdom of Bahrain Electronic Visa Service (Visa Services)

Government Type: Constitutional Monarchy

Background: In 1783, the Sunni Al-KHALIFA family took power in Bahrain. In order to secure these holdings, it entered into a series of treaties with the UK during the 19th century that made Bahrain a British protectorate. The archipelago attained its independence in 1971. A steady decline in oil production and reserves since 1970 prompted Bahrain to take steps to diversify its economy, in the process developing petroleum processing and refining, aluminum production, and hospitality and retail sectors. It has also endeavored to become a leading regional banking center, especially with respect to Islamic finance. Bahrain's small size, central location among Gulf countries, economic dependence on Saudi Arabia, and proximity to Iran require it to play a delicate balancing act in foreign affairs among its larger neighbors. Its foreign policy activities usually fall in line with Saudi Arabia and the UAE. In 2022, the United States designated Bahrain as a major non-NATO ally.

The Sunni royal family has long struggled to manage relations with its large Shia-majority population. In early 2011, amid Arab uprisings elsewhere in the region, the Bahraini Government confronted similar pro-democracy and reform protests at home with police and military action, including deploying Gulf Cooperation Council security forces to Bahrain. Failed political talks prompted opposition political societies to boycott 2014 legislative and municipal council elections. In 2018, a law preventing members of political societies dissolved by the courts from participating in elections effectively sidelined the majority of opposition figures from taking part in national elections. As a result, most members of parliament are independents. Ongoing dissatisfaction with the political status quo continues to factor into sporadic clashes between demonstrators and security forces. On 15 September 2020, Bahrain and the United Arab Emirates signed peace agreements (the Abraham Accords) with Israel – brokered by the US – in Washington DC. Bahrain and the UAE thus became the third and fourth Middle Eastern countries, along with Egypt and Jordan, to recognize Israel.

Region: Middle East

Population: 1,553,886 (2023 est.)

Ethnic Groups: Bahraini 46%, Asian 45.5%, other Arab 4.7%, African 1.6%, European 1%, other 1.2% (includes Gulf Co-operative country nationals, North and South Americans, and Oceanians) (2010 est.)

Languages: Arabic (official), English, Farsi, and Urdu.

Religions: Muslim 73.7%, Christian 9.3%, Jewish 0.1%, other 16.9% (2017 est.)

Economic Overview: Heavily dependent oil/gas economy, has suffered due to lower prices and COVID-19 demand reductions; diversification struggles driven by unemployment and low-skilled labor force; deployed fiscal balancing efforts; emerging tourism industry hit hard by COVID-19 disruptions.

Currency: Bahraini Dinar (BHD)

Reserves of Foreign Exchange & Gold: $4.993 billion (31 December 2021 est.)

Real GDP (Purchasing Power Parity): $72.267 billion (2021 est.); note: data is in 2017 U.S. dollars

Real GDP Growth Rate: 2.23% (2021 est.)

Real GDP per Capita: $49,400 (2021 est.); note: data is in 2017 U.S. dollars

Exports:

  • $30.097 billion (2018 est.); note: data is in current year U.S. dollars and does not include illicit exports or re-exports

  • Comparison Ranking: 73

Export Commodities: Refined petroleum, aluminum, iron ore and reductions, aluminum wiring, and crude petroleum (2021)

Export Partners: United Arab Emirates 31%, Saudi Arabia 12%, Japan 8%, United States 8% (2019)

Imports:

  • $27.187 billion (2018 est.); note: data is in current year U.S. dollars

  • Comparison Ranking: 78

Import Commodities: Cars, iron ore, jewelry, gold, and gas turbines (2019)

Import Partners: United Arab Emirates 27%, China 11%, Saudi Arabia 7%, United States 5%, Brazil 5%, Japan 5%, India 5% (2019)

Natural Resources: Oil, associated and nonassociated natural gas, fish, and pearls.

Agricultural Products: Mutton, dates, milk, poultry, tomatoes, fruit, sheep offals, sheep skins, eggs, and pumpkins.

Industries: Petroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, Islamic and offshore banking, insurance, ship repairing, and tourism.

Industrial Production Growth Rate: 

  • 0.4% (2021 est.)

  • Comparison Ranking: 155

Labor Force: 819,100 (2021 est.)

Labor Force By Occupation: 

  • Agriculture: 1%

  • Industry: 32%

  • Services: 67% (2004 est.)

Unemployment Rate: 1.87% (2021 est.)

Natural Hazards: Periodic droughts and dust storms.

Geography:

  • Total: 760 sq km

  • Land: 760 sq km

  • Water: 0 sq km

(Country Summary, The World Factbook, CIA.gov)

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