Regional support prevents a full-blown crisis

C3

SENSITIVE RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Updated in August 2021.

Swipe to view more

GDP USD 38.5bn (World ranking 93, World Bank 2020)
Population 1.7mn (World ranking 151, World Bank 2020)
Form of state Constitutional monarchy
Head of government Crown Prince SALMAN bin Hamad Al-Khalifa (Prime Minister)
Next elections 2022, legislative
  • Relatively (in a regional context) diversified economy, with oil, manufacturing (including aluminum and petro-chemicals) and financial sectors
  • Pro-business stance and commercial and trading environment rated highly by independent international assessments
  • Financial and other support from larger regional states, particularly Saudi Arabia
  • Tensions between the ruling Sunni community and the Shia majority
  • Regional instability, including potential for contagion stemming from events in Iran, Iraq and/or Syria
  • Despite economic diversification, there is still a high dependence on oil revenues, directly (own output) and indirectly (regional influence)
  • Sharply deteriorated public finances since 2015
  • Low FX reserves (import cover < 2 months)
  • Very high external debt
  • Poor data transparency

Trade structure by destination/origin

(% of total, annual 2020)

Exports Rank Imports
United Arab Emirates 24.6%
1
20.6% Saudi Arabia
Saudi Arabia 17.4%
2
9.0% United Arab Emirates
United States 6.5%
3
8.7% China
Oman 4.0%
4
6.4% Australia
India 3.6%
5
5.9% United States of America

Trade structure by product

(% of total, annual 2020)

Exports Rank Imports
Petroleum, petroleum products and related materials 29.4%
1
11.5% Petroleum, petroleum products and related materials
Non-ferrous metals 18.1%
2
8.7% Metalliferous ores and metal scrap
Metalliferous ores and metal scrap 10.6%
3
8.2% Road vehicles
Iron and steel 6.4%
4
6.3% Other industrial machinery and parts
Manufactures of metal, n.e.s. 4.1%
5
5.3% Electrical machinery, apparatus and appliances, n.e.s.
Popular Risk Reports: Americas

Popular Risk Reports: Europe

Popular Risk Reports: Asia Pacific

Popular Risk Reports: Middle East