View source for Economy of Bahrain

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{{Infobox economy
| country = Bahrain
| image = Manama, Bahrain Decembre 2014.jpg
| caption = [[Manama]] skyline
| currency = [[Bahraini dinar]] (BHD)
| year = Calendar Year
| organs = [[WTO]] and [[Cooperation Council for the Arab States of the Gulf|GCC]]
| group = {{plainlist|
*[[Developing country|Developing/Emerging]]<ref>{{cite web |url=https://www.imf.org/external/pubs/ft/weo/2019/01/weodata/weoselco.aspx?g=2200&sg=All+countries+%2f+Emerging+market+and+developing+economies |title=World Economic Outlook Database, April 2019 |publisher=[[International Monetary Fund]] |website=IMF.org |access-date=29 September 2019}}</ref>
*[[World Bank high-income economy|High-income economy]]<ref>{{cite web |url=https://datahelpdesk.worldbank.org/knowledgebase/articles/906519-world-bank-country-and-lending-groups |title=World Bank Country and Lending Groups |publisher=[[World Bank]] |website=datahelpdesk.worldbank.org |access-date=29 September 2019}}</ref>}}
| population = {{IncreaseNeutral}} 1,577,059 (2023)<ref>{{cite web |title=Population, total - Bahrain |url=https://data.worldbank.org/indicator/SP.POP.TOTL?locations=BH |website=data.worldbank.org |publisher=World Bank |access-date=21 February 2020}}</ref>
| gdp = {{plainlist|
*{{increase}} $46.9 billion (nominal, 2024 est.)<ref name="GCCWEO-OCT24">{{cite web |url=https://www.imf.org/en/Publications/WEO/weo-database/2025/April/weo-report?c=419,443,449,453,456,466,&s=NGDP_RPCH,NGDPD,PPPGDP,NGDPDPC,PPPPC,PCPIPCH,LP,&sy=2022&ey=2028&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 |title=Report for Selected Countries and Subjects: April 2025|publisher=[[International Monetary Fund]]|website=imf.org}}</ref>
*{{increase}} $106.5 billion ([[Purchasing power parity|PPP]], 2024 est.)<ref name="GCCWEO-OCT24"/>}}
| gdp rank = {{plainlist|
*[[List of countries by GDP (nominal)|94th (nominal, 2025)]]
*[[List of countries by GDP (PPP)|100th (PPP, 2025)]]}}
| growth = {{plainlist|
*{{decrease}} 3.9%&nbsp;(2023)
*{{decrease}} 2.8%&nbsp;(2024e)
*{{steady}} 2.8%&nbsp;(2025f)
*{{increase}} 3.0%&nbsp;(2026f)<ref name="GCCWEO-OCT24"/>}}
| per capita = {{plainlist|
*{{increase}} $30,035 (nominal, 2025 est.)<ref name="GCCWEO-OCT24"/>
*{{increase}} $65,888 (PPP, 2025 est.)<ref name="GCCWEO-OCT24"/>}}
| per capita rank = {{plainlist|
*[[List of countries by GDP (nominal) per capita|42nd (nominal, 2025)]]
*[[List of countries by GDP (PPP) per capita|22nd (PPP, 2025)]]}}
| sectors = {{plainlist|
*[[Primary sector of the economy|agriculture]]: 0.3%
*[[Secondary sector of the economy|industry]]: 44.5%
*[[Tertiary sector of the economy|services]]: 51.1%
*(2023 est.)<ref name="CIAWFBA"/>}}
| inflation = {{IncreaseNegative}} 0.9% (2024)<ref name="GCCWEO-OCT24"/>
| poverty = N/A<ref>{{cite web|url=https://www.cia.gov/the-world-factbook/countries/bahrain/|title=The World Factbook|access-date=3 March 2015}}</ref>
| gini = 
| hdi = {{plainlist|
*{{increase}} 0.888 {{color|darkgreen|very high}} (2022)<ref name="bhhdi">{{Cite web |date=13 March 2024 |title=Human Development Report 2023/2024 |url=https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf|url-status=live |archive-url=https://web.archive.org/web/20240313164319/https://hdr.undp.org/system/files/documents/global-report-document/hdr2023-24reporten.pdf |archive-date=13 March 2024 |access-date=15 June 2024 |publisher=[[United Nations Development Programme]] |language=en}}</ref> ([[List of countries by Human Development Index|34th]])
*N/A [[List of countries by inequality-adjusted HDI|IHDI]] (2022)}}
| labor = {{plainlist|
*{{increase}} 928,809 (2024)<ref>{{cite web |title=Labor force, total - Bahrain |url=https://data.worldbank.org/indicator/SL.TLF.TOTL.IN?locations=BH |website=data.worldbank.org |publisher=World Bank & [[ILO]] |access-date=21 February 2020}}</ref>
*70.9% employment rate (2015)<ref>{{cite web |title=Employment to population ratio, 15+, total (%) (national estimate) - Bahrain |url=https://data.worldbank.org/indicator/SL.EMP.TOTL.SP.NE.ZS?locations=BH |website=data.worldbank.org |publisher=World Bank & ILO |access-date=21 February 2020}}</ref>
*44% of the population in the 15-64 age group is non-national<ref name="CIAWFBA">{{cite web |title=MIDDLE EAST :: BAHRAIN |url=https://www.cia.gov/the-world-factbook/countries/bahrain/ |website=CIA.gov |publisher=[[Central Intelligence Agency]] |access-date=21 February 2020}}</ref>}}
| occupations = {{plainlist|
*agriculture: 1%
*industry: 32%
*services: 67%
*(2004 est.)<ref name="CIAWFBA"/>}}
| unemployment = {{plainlist|
*{{DecreasePositive}} 1.1% (2024)<ref>{{cite web |title=World Bank Open Data |url=https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS?locations=BH |website=data.worldbank.org |access-date=14 November 2020}}</ref>}}
| industries = Offshore [[Banking]] and [[Islamic banking|Islamic Banking]], [[Aluminum]] [[Smelting]], [[Oil refinery|Petroleum processing and refining]], [[Iron]] [[Pelletization]], [[Fertilizers]],  [[Insurance]], Ship Repairing, [[Tourism]]
| exports = $40.344 billion (2023 est.)
| export-goods = [[Aluminum]], [[Petroleum]] and Petroleum Products, [[Textiles]], [[Gold]], [[Jewellery]], [[Cheese]]
| export-partners = {{ubl
   |{{flag|Saudi Arabia}} 15%
   |{{flag|United Arab Emirates}} 10%
   |{{flag|United States}} 9%
   |{{flag|Japan}} 5%
   |{{flag|India}} 4% (2022 est.)<ref>{{cite web|url=https://www.cia.gov/library/publications/the-world-factbook/fields/2050.html#ba|title=Export Partners of Bahrain|publisher=[[CIA World Factbook]]|year=2016|access-date=2018-03-09|archive-date=2016-10-02|archive-url=https://web.archive.org/web/20161002094202/https://www.cia.gov/library/publications/the-world-factbook/fields/2050.html#ba|url-status=dead}}</ref>}}
| imports = $32.374 billion (2023 est.)
| import-goods = [[Crude Oil]], Machinery, [[Chemicals]], [[Gold]], [[Jewellery]]
| import-partners = {{ubl
   |{{flag|China}} 15%
   |{{flag|United Arab Emirates}} 12%
   |{{flag|Brazil}} 9%
   |{{flag|Australia}} 8%
   |{{flag|India}} 7% (2022 est.)<ref>{{cite web|url=https://www.cia.gov/library/publications/the-world-factbook/fields/2061.html#ba|title=Import Partners of Bahrain|publisher=[[CIA World Factbook]]|year=2016|access-date=2018-03-09|archive-date=2016-08-13|archive-url=https://web.archive.org/web/20160813074717/https://www.cia.gov/library/publications/the-world-factbook/fields/2061.html#ba|url-status=dead}}</ref>}}
| gross external debt = {{IncreaseNegative}} $60.58 billion (2024 est.)<ref name="GCCWEO-OCT24"/>
| debt = {{IncreaseNegative}} 134% of GDP (2024 est.)<ref name="GCCWEO-OCT24"/>
| revenue = {{Decrease}} $8.479 billion (2023)
| expenses = {{IncreaseNegative}} $10.532 billion (2023)
| credit = {{plainlist|
*[[Standard & Poor's]]:<ref>{{cite web |title= Sovereigns rating list |publisher=Standard & Poor's |url=http://www.standardandpoors.com/ratings/sovereigns/ratings-list/en/eu/?subSectorCode=39 |access-date=26 May 2011}}</ref>
*B+ (Domestic)
*B+ (Foreign)
*B+ (T&C Assessment)}}
| aid = 
| spelling = 
}}
The '''economy of [[Bahrain]]''' has significantly diversified in recent years to no longer be dependent on oil and gas — as of 2024, the extraction of oil and natural gas is the third biggest sector in the economy.<ref name="fia World Fact Book - Bahrain's Economy">{{cite web |last=Ministry of Finance and National Economy |date=5 May 2025 |title=Bahrain Economic Report 2024 |url=https://www.mofne.gov.bh/media/bsijlcsc/beq-2024-en.pdf |access-date=25 June 2025 |website=Ministry of Finance and National Economy}}</ref> [[Bahrain]] advocates for a [[mixed economy|mixed economy system]].<ref>https://2009-2017.state.gov/outofdate/bgn/bahrain/8143.htm</ref><ref>https://2009-2017.state.gov/outofdate/bgn/bahrain/26416.htm</ref> The [[Bahraini Dinar]] is the second-highest-valued currency unit in the world.<ref>{{cite web|url=http://www.foxnews24x7.com/2013/04/10-most-expensive-currency-in-world.html|title=10 Most Expensive Currency In The World - Latest News Online, News, Fresh News, Online News|access-date=3 March 2015|archive-url=https://web.archive.org/web/20150225173742/http://www.foxnews24x7.com/2013/04/10-most-expensive-currency-in-world.html|archive-date=25 February 2015|url-status=dead}}</ref>  Since the late 20th century, [[Bahrain]] has heavily invested in the [[banking]] and [[tourism]] sectors.<ref name=EDB>{{Cite web|title=Bahrain's economy praised for diversity and sustainability |url=http://www.bahrainedb.com/EDBInBahrain.aspx?id=2134 |publisher=Bahrain Economic Development Board |access-date=24 June 2012 |url-status=dead |archive-url=https://web.archive.org/web/20101228154653/http://www.bahrainedb.com/EDBInBahrain.aspx?id=2134 |archive-date=December 28, 2010 }}</ref> In 2008, Bahrain was named the world's fastest-growing financial center by the City of London's [[Global Financial Centres Index]].<ref>[http://www.hedgefundsreview.com/public/showPage.html?page=744774 Hedge Funds Review] 18 March 2008</ref><ref>[http://www.gulf-daily-news.com/Story.asp?Article=211833&Sn=BNEW&IssueID=30364 ''Gulf Daily News''] 18 March 2008</ref> Bahrain's banking and financial services sector, particularly [[Islamic banking]], have benefited from the regional boom driven by demand for oil.<ref>{{Cite web|url=http://www.arabianbusiness.com/517455-bahrain-calling |title=Bahrain calling&nbsp;– Banking & Finance |publisher=ArabianBusiness.com |date=25 April 2008 |access-date=27 June 2010}}</ref> Petroleum is Bahrain's most exported product, accounting for 60% of export receipts, 70% of government revenues, and 11% of [[Gross domestic product|GDP]].<ref name="CIA">{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/bahrain/ |title=CIA World Factbook, "Bahrain" |publisher=Cia.gov |access-date=25 January 2011}}</ref> [[Aluminium Bahrain|Aluminum]] is the second most exported product, followed by finance and construction materials.<ref name="CIA"/>

According to the 2020 edition of the ''[[Index of Economic Freedom]]'', Bahrain has the fourth-freest economy in the [[Middle East]] and [[North Africa]] region and is the 40th-freest economy in the world.<ref>{{Cite web|title=Bahrain Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption|url=http://www.heritage.org/index/country/bahrain|archive-url=https://web.archive.org/web/20090115142230/http://www.heritage.org/index/country/Bahrain|url-status=unfit|archive-date=January 15, 2009|access-date=2020-09-18|website=www.heritage.org|language=en}}</ref> An alternative index places Bahrain at 70th place.<ref>{{Cite web|last1=Gwartney|first1=James|last2=Lawson|first2=Robert|last3=Hall|first3=Joshua|last4=Murphy|first4=Ryan|last5=Berggren|first5=Niclas|last6=McMahon|first6=Fred|last7=Nilsson|first7=Therese|year=2020|title=Economic Freedom of the World Annual Report|url=https://www.fraserinstitute.org/sites/default/files/economic-freedom-of-the-world-2020.pdf|website=fraserinstitute.org}}</ref> Bahrain was recognised by the [[World Bank]] as a [[high income economy]].<ref>{{Cite web|title=Bahrain {{!}} Data|url=https://data.worldbank.org/country/bahrain?view=chart|access-date=2020-09-18|website=data.worldbank.org}}</ref>

== Economy overview ==
Oil and natural gas play a dominant role in Bahrain’s economy. Despite efforts to diversify the economy, according to the CIA World Fact Book, oil still comprises 85% of Bahraini budget revenues, meaning throughout the last few years, lower world energy prices have generated sizeable budget deficits - about 10% of GDP in 2017 alone.<ref>{{Cite web|url=https://www.cia.gov/the-world-factbook/countries/bahrain/|title=Middle East :: Bahrain — The World Factbook - Central Intelligence Agency|website=www.cia.gov|access-date=2019-09-23}}</ref> Bahrain's economy depends on oil and gas, international banking, and tourism.<ref name=EDB/>

In 2003 and 2004, the balance of payments improved due to rising oil prices and increased receipts from the services sector. As a result, the current account balance registered a surplus of US$219 million in 2003 and a surplus of US$442 million in 2004, compared to a deficit of US$35 million in 2002. Bahrain's gross international reserves increased substantially in 2004 to US$1.6 billion, up from US$1.4 billion in the previous three years (2001-2003).

== Diversification ==
Though [http://earthtrends.wri.org/text/economics-business/variable-638.html Current GDP per capita] {{Webarchive|url=https://web.archive.org/web/20120504135206/http://earthtrends.wri.org/text/economics-business/variable-638.html |date=2012-05-04 }} shrank by 2.4% in the 1980s, it bounced back to a growth of 36% in the 1990s as a result of successful diversification initiatives. Bahrain's urgency in embracing economic liberalisation is due to its need to diversify the economy away from its limited oil supplies. Unlike its Persian Gulf neighbours, Bahrain has little oil wealth, and the economy has expanded into [[banking]], heavy industries, [[retail]], and [[Tourism in Bahrain|tourism]]. The Kingdom is the main banking hub for the [[Persian Gulf]] and a centre for Islamic finance, which has been attracted by the strong regulatory framework for the industry. According to the [[International Monetary Fund]]'s Financial System Stability Assessment of Bahrain's financial regulatory environment, published on 6 March 2006, it found:

* The financial system is enjoying strong performance under favorable circumstances and is likely to remain a major contributor to overall growth. The main risk stems from potential overheating in the economies of the region, but the system should be resilient to likely shocks.
* Prudential regulations are modern and comprehensive, and supervision is generally effective, especially in the dominant banking sector. Supervisory capacity needs to be expanded in line with new regulations and to keep up with the growth and increasing sophistication of financial institutions.
* The further expansion of the Islamic sector, the development of housing finance, and the deepening of securities markets are important for the future growth of the financial system. The banking and insurance sectors will eventually undergo consolidation. [http://www.imf.org/external/pubs/ft/scr/2006/cr0691.pdf]

In 2005, Bahrain signed the [[US-Bahrain Free Trade Agreement]], becoming the first Persian Gulf state to sign such a bilateral [[trade agreement]] with the [[United States]]. A massive privatization programme is underway to sell off key government assets: utilities, banks, financial services, and [[telecommunications]] have started to come under the control of the private sector.

As a result, the economy has been well-positioned to exploit the extra revenues generated in the region, thanks to the sustained high oil prices since 2002. In January 2006, the [[United Nations Economic and Social Commission for Western Asia]] cited Bahrain as the [https://www.tradearabia.com/news/TTN_99455.html fastest growing economy] in the Arab world.

Between 1981 and 1993, the Bahrain Government's expenditures increased by 64%. During that same time, government revenues continued to be largely dependent on the oil industry and increased by only 4%.  Bahrain has at times received significant budgetary support and project grants from [[Saudi Arabia]], [[Kuwait]], and the [[United Arab Emirates]].

The government has used its modest oil revenues to build an advanced infrastructure in transportation and telecommunications. Bahrain is a regional financial and business center. [[Tourism in Bahrain|Tourism]], especially from the region, has proved another significant source of income.

Bahrain has benefited from the oil boom since 2001, with economic growth of 5.5%. It has succeeded in attracting investment from other Persian Gulf states partly because it used the revenues of the 1970s-early 80s boom to invest in infrastructure development and other projects to improve the standard of living; health, education, housing, [[electricity]], water, and roads all received attention.

The success of ventures such as the [[Bahrain Grand Prix]] has raised the Kingdom's international profile, and combined with the boom in [[Islamic banking]], has encouraged major airlines to resume services to the country, with [[Lufthansa]] announcing on 14 March 2006 that it would schedule [http://www.gulf-daily-news.com/Story.asp?Article=138106&Sn=BNEW&IssueID=28360  three flights a week to Muharraq from Frankfurt] {{Webarchive|url=https://web.archive.org/web/20071011203959/http://www.gulf-daily-news.com/Story.asp?Article=138106&Sn=BNEW&IssueID=28360 |date=2007-10-11 }}.

Bahrain has initiated a series of labour reforms under Minister of Labour [[Majeed Al Alawi]] to bring the labour market into line with international standards. 

In 2009, it was announced that the Bahraini Government would be developing land next door to the [[Bahrain International Circuit]]. The project being managed by @Bahrain is a mix of facilities including an exhibition and convention facility, a choice of hotel accommodations ranging from mid-market to luxury, a multi-purpose indoor arena, an automotive club and engineering facility, retail and leisure establishments, a tech-tainment (technology interacting with entertainment) centre, a research institute, a technology park and a focus on education and training. @Bahrain is part of the Mumtalakat group of companies and will dedicate  more than 1 million square meters of business, entertainment and educational space with a value in excess of $2bn (BD 850 million), making it one of the largest investment projects to take place in Bahrain in the past five years.<ref>{{cite web|url=http://gulf-daily-news.com/NewsDetails.aspx?storyid=248950|title=Gulf Daily News » Business News » Jobs 'for generations to come'|access-date=3 March 2015|archive-date=11 July 2011|archive-url=https://web.archive.org/web/20110711133430/http://gulf-daily-news.com/NewsDetails.aspx?storyid=248950|url-status=dead}}</ref>

In July 2023, Bahrain's national origin exports decreased by 23%, valued at BD323 million, while imports fell by 6% to BD441 million, resulting in a trade deficit of BD68 million, according to the Information & eGovernment Authority (iGA) report.<ref>{{Cite news  |date=2023-08-25 |title= Bahrain-origin exports dip 23% to $848mln in July |language=en |work=Zawya |url= https://www.zawya.com/en/economy/gcc/bahrain-origin-exports-dip-23-to-848mln-in-july-uru6pgek  |access-date=2023-08-31}}</ref>

Overall during 2023, Bahrain's GDP grew by 2.45%, with the non-oil sector showing a robust increase of 4.48%, indicating the country's successful efforts towards economic diversification.<ref>{{Cite web |date=2023-12-26 |title=Bahrain's Economy Records 2.45% Growth in Q3 2023 |url=https://www.gulf-insider.com/bahrains-economy-records-2-45-growth-in-q3-2023/ |access-date=2024-04-10 |website=Gulf Insider |language=en-US |archive-date=2024-04-10 |archive-url=https://web.archive.org/web/20240410085306/https://www.gulf-insider.com/bahrains-economy-records-2-45-growth-in-q3-2023/ |url-status=dead }}</ref> The Bahrain Economic Development Board played a crucial role in enhancing Bahrain's investment climate, actively facilitating the entry of international investors and expanding the sectors open to 100% foreign ownership, including significant initiatives in the oil and gas sectors under certain conditions.<ref>{{Cite web |title=Bahrain's development plans facilitate economic diversification |work=Oxford Business Group |date=17 July 2023 |url=https://oxfordbusinessgroup.com/reports/bahrain/2023-report/economy/sustainable-growth-medium-and-long-term-development-plans-implemented-to-guide-efforts-to-facilitate-economic-diversification-overview/}}</ref>

== Macro-economic trend ==
This is a chart of the trend of gross domestic product of Bahrain at market prices [http://www.imf.org/external/pubs/ft/weo/2006/01/data/dbcselm.cfm?G=2001 estimated] by the International Monetary Fund, with figures in millions of Bahraini Dinars.
{| class="wikitable"
|-
! Year || Gross  Domestic Product || US Dollar Exchange || Inflation Index (2000=100)
|-
| 1980 || 1,354 || 0.377 Bahraini Dinars || 74
|-
| 1985 || 1,609 || 0.377 Bahraini Dinars || 90
|-
| 1990 || 1,867 || 0.377 Bahraini Dinars || 89
|-
| 1995 || 2,552 || 0.377 Bahraini Dinars || 98
|-
| 2000 || 3,408 || 0.377 Bahraini Dinars || 100
|-
| 2005 || 6,004 || 0.377 Bahraini Dinars || 105
|-
| 2010 || 9,668 || 0.377 Bahraini Dinars || 120
|-
| 2015 || 11,675 || 0.377 Bahraini Dinars || 133
|-
| 2020 || 13,058 || 0.377 Bahraini Dinars || 139
|}

For purchasing power parity comparisons, the US Dollar is exchanged at 0.30 Bahraini Dinars only. Mean wages were $19.81 per [[man-hour]] in 2009.

The following table shows the main economic indicators from 1980–2024.<ref>{{cite web | url=https://www.imf.org/en/Publications/WEO/weo-database/2025/April/weo-report?c=419,&s=NGDP_R,NGDP_RPCH,NGDPD,PPPGDP,NGDPRPPPPC,NGDPDPC,PPPPC,PCPIPCH,GGXWDG_NGDP,&sy=1980&ey=2025&ssm=0&scsm=1&scc=0&ssd=1&ssc=0&sic=0&sort=country&ds=.&br=1 | title=Report for Selected Countries and Subjects }}</ref>
{| class="wikitable" style="text-align: center;"
!Year
!GDP 
(in bil. US$ PPP)
!GDP per capita 
(in US$ PPP)
!GDP
(in bil. US$ nominal)
!GDP growth (real)
!Inflation (in Percent)
!Government debt
(in % of GDP)
|-
!1980
|7.3
|20,779
|3.6
|7.5 %
|3.8 %
|...
|-
!1985
|11.4
|27,186
|4.3
|−0.9 %
|−2.4 %
|...
|-
!1990
|14.7
|30,044
|5.0
|3.5 %
|1.3 %
|8 %
|-
!1995
|20.5
|36,705
|6.8
|1.9 %
|3.1 %
|14 %
|-
!2000
|28.0
|43,920
|9.1
|7.0 %
|−0.7 %
|26 %
|-
!2005
|40.4
|45,440
|16.0
|6.8 %
|2.6 %
|24 %
|-
!2010
|58.2
|47,117
|25.7
|4.3 %
|2.0 %
|30 %
|-
!2011
|60.6
|50,673
|28.8
|2.0 %
|−0.3 %
|33 %
|-
!2012
|65.9
|54,489
|30.7
|3.7 %
|2.8 %
|36 %
|-
!2013
|67.7
|54,035
|32.5
|5.4 %
|3.3 %
|44 %
|-
!2014
|68.3
|51,938
|33.4
|4.4 %
|2.6 %
|44 %
|-
!2015
|62.5
|45,627
|31.1
|2.5 %
|1.8 %
|66 %
|-
!2016
|63.8
|44,834
|32.2
|3.8 %
|2.8 %
|81 %
|-
!2017
|71.3
|47,486
|35.5
|4.9 %
|1.4 %
|88 %
|-
!2018
|74.5
|48,424
|37.8
|2.0 %
|2.1 %
|90 %
|-
!2019
|77.5
|50,118
|38.7
|2.0 %
|1.0 %
|97 %
|-
!2020
|78.7
|48,166
|34.6
|−5.9 %
|−2.3 %
|126 %
|-
!2021
|82.7
|48,357
|39.3
|4.3 %
|−0.6 %
|122 %
|-
!2022
|93.9
|49,482
|44.4
|6.0 %
|3.6 %
|111 %
|-
!2023
|100.1
|57,213
|46.1
|3.0 %
|0.1 %
|123 %
|-
!2024
|105.6
|57,503
|47.8
|3.0 %
|1.4 %
|126 %
|}

== Hydrocarbon industry ==
[[File:Weatherford International nodding donkey pump, Bahrain.jpg|thumb|[[Nodding donkey]] crude oil pump in Bahrain (2019)]]
[[Petroleum]] and [[natural gas]] are the only significant natural resources in Bahrain.  Because of its limited reserves, Bahrain has worked to diversify its economy over the decade prior to 2004.  Bahrain has stabilized its oil production at about 40,000 barrels (6,400 m³) per day, and reserves are expected to last 10 to 15 years.  The [[Bahrain Petroleum Company]] refinery was built in 1935, has a capacity of about 250,000 barrels (40,000 m³) per day, and was the first in the Persian Gulf outside of Iran. After selling 60% of the refinery to the state-owned [[Bahrain National Oil Company]] in 1980, [[Caltex]], a U.S. company, now owns 40%. Saudi Arabia provides most of the crude for refinery operations via pipeline. Bahrain also receives a large portion of the net output and revenues from Saudi Arabia's Abu Saafa offshore oilfield.

The [[Bahrain National Gas Company]] operates a gas liquefaction plant that utilizes gas piped directly from Bahrain's oilfields. Gas reserves should last about 50 years at present rates of consumption. The [[Gulf Petrochemical Industries Company (GPIC)]] is a joint venture of the petrochemical industries of Kuwait, the Saudi Basic Industries Corporation, and the Government of Bahrain. The plant, completed in 1985, produces [[ammonia]], [[methanol]] and [[urea]] for export.

Bahrain's other industries include [[Aluminum Bahrain]], which operates an aluminum smelter—the largest in the world with an annual production of about 1,500,000 metric tons—and related factories, such as the [[Aluminum Extrusion Company]] and the [[Gulf Aluminum Rolling Mill Company]] (GARMCO)[http://www.garmco.com]. Other plants include the [[Arab Iron and Steel Company]]'s iron ore pelletizing plant (4 million tons annually) and a shipbuilding and repair yard.

International financial institutions operate in Bahrain, both offshore and onshore, without impediments. In 2001, Bahrain's central bank issued 15 new licenses.  More than 100 offshore banking units and representative offices are located in Bahrain, as well as 65 American firms. [[Bahrain International Airport|Bahrain's international airport]] is one of the busiest in the Persian Gulf, serving 22 carriers. A port offers direct and frequent cargo shipping connections to the U.S., Europe, and the Far East. Notable Bahraini companies include Investcorp, a global investment firm founded in 1982 and headquartered in Manama, which has invested in various international brands such as [[Gucci]].

==Taxation==

[[Taxation]] and import laws apply equally to Bahraini and foreign-owned companies, and [[foreign investors]] must comply with the same requirements and legislation as local firms.

[[Oil]] and gas companies are taxed 46 percent on income derived from the sale of [[hydrocarbons]] and derivative products.

There is no personal income tax in Bahrain.

Employers and workers must pay social insurance contributions as follows:<br />
(1) for old-age, disability and survivor protection: for Bahraini employees, since May 2022, employers pay 14% of salary plus constant allowances, the percentage will rise by 1% each year (up to 20% in 2028),<ref>{{cite web | url=https://www.mondaq.com/employee-benefits--compensation/1193748/amendments-to-social-insurance-law | title=Amendments to Social Insurance Law - Employee Benefits & Compensation - Bahrain }}</ref> workers pay 7% plus constant allowances; for non-Bahraini employees, employers pay 3% of salary plus constant allowances (then being entitled only to employment injury benefits).<br />
(2) for unemployment insurance: since June 1, 2007, all wages are subject to a 2% tax, paid for equally by the employer and the employee, applicable both to nationals and non-citizens, and supplemented by a government contribution of 1%. This makes Bahrain the first of the [[Cooperation Council for the Arab States of the Gulf|GCC]] countries to implement a UI scheme.

==See also==
* [[Bahrainization]]
* [[Migrant workers in Bahrain]]

==References==

===Notes===
{{Reflist}}

===Bibliography===
{{Refbegin}}
*{{CIA World Factbook|year=2006}}
*{{StateDept}}
* Kingdom of Bahrain, Ministry of Labour [https://web.archive.org/web/20090801075104/http://www.mol.gov.bh/MOL/En/Legislations/ListLaws.aspx?ChnlNm=Training%20Law Unemployment Insurance System]. Accessed November 6, 2007.
{{Refend}}

==External links==
* [http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=21261 Daily Star (Beirut), 6 January 2006, ''Bahrain's 'honesty' keeps its economy freest in region''] {{Webarchive|url=https://web.archive.org/web/20090730083325/http://www.dailystar.com.lb/article.asp?edition_id=10&categ_id=3&article_id=21261 |date=30 July 2009 }}
* [https://web.archive.org/web/20070705060326/http://archive.gulfnews.com/articles/06/01/07/10009878.html Gulf News, 7 January 2006, ''Bahrain ranked freest Arab economy'']
* [http://www.uob.edu.bh University of Bahrain] {{Webarchive|url=https://web.archive.org/web/20140226223728/http://www.uob.edu.bh/ |date=2014-02-26 }}
* [http://www.oilandgasinfrastructure.com/home/oilandgasmiddleeast/bahrain map of oil and gas infrastructure in Bahrain] [https://goldrateweb.com/gold-rate-in-bahrain/] {{Webarchive|url=https://web.archive.org/web/20211205174240/https://goldrateweb.com/gold-rate-in-bahrain/ |date=2021-12-05 }}

{{Bahrain topics}}
{{Middle East topic|Petroleum industry in}}
{{World Trade Organization}}
{{Asia in topic|Economy of}}

{{DEFAULTSORT: Economy Of Bahrain}}
[[Category:Economy of Bahrain| ]]
[[Category:Economy of the Arab League]]
[[Category:World Trade Organization member economies|Bahrain]]
[[Category:Petroleum industry in Bahrain]]

[[bn:বাহরাইন#অর্থনীতি]]