The economy of Bahrain is heavily dependent upon oil and gas. The Bahraini Dinar is the second highest valued currency unit in the world. Since the late 20th century, Bahrain has heavily invested in the banking and tourism sectors. The country's capital, Manama is home to many large financial structures. Bahrain's finance industry is very successful. In 2008, Bahrain was named the world's fastest growing financial center by the City of London's Global Financial Centres Index. Bahrain's banking and financial services sector, particularly Islamic banking, have benefited from the regional boom driven by demand for oil. Petroleum is Bahrain's most exported product, accounting for 60% of export receipts, 70% of government revenues, and 11% of GDP. Aluminium is the second most exported product, followed by finance and construction materials.
Top Sectors in Bahrain
Oil and Gas in Bahrain
Historically, oil and gas have been the cornerstone of Bahrain's economy, providing significant revenues through exploration, production, and export.
Banking and Finance in Bahrain
Bahrain has emerged as a leading financial hub in the Gulf region, with a strong emphasis on Islamic banking and finance. The country hosts numerous banks, investment firms, and insurance companies, attracting both regional and international investors.
Tourism in Bahrain
Bahrain has been actively promoting its tourism industry, leveraging its cultural heritage, historical sites, and modern attractions to attract visitors. The Formula 1 Bahrain Grand Prix and the Bahrain International Airshow are notable events that draw international attention.
Manufacturing in Bahrain
Bahrain's manufacturing sector includes industries such as aluminum production, petrochemicals, and food processing. The Aluminum Bahrain (Alba) smelter is one of the largest aluminum smelters in the world and a significant contributor to the economy.
Trade and Commerce in Bahrain
Due to its strategic location in the Gulf region, Bahrain serves as a key trading hub, facilitating trade between the Middle East, Asia, and the rest of the world. The country's well-developed logistics infrastructure and business-friendly environment attract foreign investment and promote commerce.
Real Estate and Construction in Bahrain
Bahrain's construction sector is dynamic, with ongoing infrastructure projects, commercial developments, and residential construction driving growth. The real estate market has seen significant investment, particularly in luxury properties and mixed-use developments.