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Bahrain
| Beyond oil score(out of 100 points) |
65.0 |
| Index ranking(out of 26 countries ranked) |
7 |
| Overall status* |
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| General Economic Framework |
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| Political Framework |
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| Society and Future Skills |
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| (Beyond) oil related factors |
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According to the US department of energy Bahrain has 125 million barrels of onshore proven oil reserves, all of which are located in the Awali field. The first oil field to be developed in the Persian Gulf. Discovered in 1932, Awali's crude oil production peaked at more than 75,000 barrels per day (bbl/d) in the 1970s, but has declined since then. As of early 2006, Awali is producing around 35,000 bbl/d of crude oil.
Bahrain is aiming to become a regional centre for finance and investment for clients from the Islamic world. The Bahraini Stock Index has climbed 196% over the last 10 years. However, strict regulations for non-residents prevent a faster growth of this future sector. Thanks to record income from high oil prices, year 2005 was a good year for the Bahraini Economy. According to a report compiled by the Economic and Social Commission for Western Asia (ESCWA), a UN agency, Bahrain topped the Arab World in real economic growth during 2005, Bahrain, with a 7 per cent growth.
Meanwhile according to a new index, published by the United Nations Conference on Trade and Development (UNCTAD), Bahrain ranks second among Gulf countries and third among Arab countries in trade and development. The export and trade sector of the Bahraini economy is expected to continue its growth thanks to a number of Free Trade Agreements (FTA) signed, the most recent of which was with the United States. At the same time, tourism plays a major part in the growth of the Bahraini economy. The Bahraini government has itself been financing a number of tourism projects. There have also been a number of joint venture projects between private investors and government.
Recent tourism projects in the country include the construction of the artificial island of “Al Marsa” which upon completion will be a replica of the romantic Italian city “Venice city”. This is in addition other projects to create artificial islands, such as Durrat Al Bahrain which will consist of 13 different islands, with over 2,000 villas, luxury hotels, shopping centres, and marinas. The Banking and Finance sector also plays a major part in Bahrain’s diversification plans.
According to recent studies, the Banking sector in Bahrain has assets of some $108 billion. Bahrain is now home to 362 financial institutions including banking units, representative offices, money and foreign exchange brokers, and insurance and reinsurance companies. Meanwhile through recent discussions and draft laws, the government aims to improve the laws protecting the investor and financial transactions.
Despite its recent progress, Bahrain's relatively high dependency on oil-related income and the comparatively modest proven oil reserves prevent a higher ranking in the index
Beyond Oil summary
Bahrain is among the middle-ranking countries of the beyond oil index. Bahrain ranks high in several international indices for competitiveness. The government is undertaking considerable efforts to establish future-oriented industries and services in the country. The Free Trade Agreements (FTA) concluded between Bahrain and the US, plus the growth of finance, tourism and construction industry, will supply Bahrain with income in the time when oil runs out. However the lack of high tech and future industries have caused Bahrain’s ranking to fall.
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Indicates high preparedness
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Indicates deficits but potential for development
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Indicates unfavourable preconditions.
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