Bahrain: A Country Of Rich History, Poor Economy

Bahrain is a wealthy country, with a high-income economy and the second-highest-valued currency unit in the world. However, there is a significant gap between the rich and the poor, with a large portion of the population living in poverty. The country's economy is heavily dependent on oil and gas, with petroleum being the most exported product, and aluminium being the second most exported. While Bahrain has attempted to diversify its economy, oil still comprises the majority of its budget revenues, and lower world energy prices have generated budget deficits. The causes of poverty in Bahrain include unequal distribution of wealth, waste of public money, poor policy planning, and dependency on low-wage foreign workers.

Bahrain's economy is heavily dependent on oil and gas

While Bahrain has been attempting to diversify its economy, oil still comprises 85-86% of Bahraini budget revenues, and revenues from oil exports account for over 70% of government income. This heavy reliance on oil means that the country's economy is susceptible to fluctuations in world energy prices, which have, in recent years, generated sizeable budget deficits. For example, in 2016, low oil prices generated a budget deficit of $4 billion, which was 14% of the nation's GDP.

However, Bahrain has had some success in diversifying its economy. In 2008, Bahrain was named the world's fastest-growing financial centre by the City of London's Global Financial Centres Index, and the country has a successful finance industry. Additionally, aluminium is the second most exported product, and the country has a thriving aluminium industry. Bahrain has also invested in tourism and has a busy international airport and port.

Bahrain's development as a major financial centre has been the most widely recognised aspect of its diversification efforts. The country has worked to attract international financial institutions, and in 2001, Bahrain's central bank issued 15 new licenses. More than 100 offshore banking units and representative offices are now located in Bahrain, along with 65 American firms.

Bahrain's government has also announced plans to further diversify the economy and develop the petrochemical industry. Five petrochemical sub-sectors have grown rapidly in recent years, including construction chemicals, water treatment chemicals, and polymer and plastic additives. The government is also investing in Carbon Capture and Storage (CCS) technology to deploy across its oil and gas and industrial sectors.

Overall, Bahrain's economy is heavily reliant on oil and gas, but the country has made some progress in diversifying its economy and developing other sectors, such as finance, aluminium, and tourism.

There is a significant wealth gap between the rich and poor

Bahrain is a wealthy country, with a high-income economy, ranking 23rd in the world with a GDP per capita of $50,870. However, there is a significant wealth gap between the rich and poor.

The country's wealth is heavily concentrated among the ruling political elite, who are mostly Sunni Muslims, while there are only a few wealthy Shiites. Shiites make up 75% of the Muslim population but are often excluded from government jobs and form the poorest segment of Bahraini society. They have long charged that there has been a systematic process of discrimination against them in the job market, and this dissatisfaction has led to protests and demonstrations that turned violent in the 1990s.

The wealth gap is also evident in the lifestyles of the rich and poor. Wealthy families shop in spacious new malls, cruise broad highways, and enjoy the leisure centres built for the exclusive use of foreign employees of the national oil company. In contrast, the poor live just a short drive away from the cities in villages all over the island.

The country's economy is dominated by oil and gas, which account for 85-86% of budget revenues. While Bahrain has invested in other sectors such as banking, tourism, and aluminium production, these have not been sufficient to reduce the country's dependence on oil and gas. The fluctuating oil industry is one of the main causes of poverty in Bahrain, and the country has struggled with budget deficits due to low oil prices in recent years.

The government has taken some steps to address poverty, such as launching The Ibda’a (Creativity) Bank in 2009, which provides micro-credit facilities for poor families and allows low-income citizens to start their own businesses. However, there is still much to be done to address the unequal distribution of wealth and the systemic discrimination faced by the Shiite population.

The Shia Muslim majority are excluded from work and face discrimination

Bahrain is a wealthy country, but there is a significant gap between the rich and the poor. Shia Muslims, who make up 75% of the Muslim population, are often excluded from government jobs and form the poorest segment of Bahraini society. The ruling Al-Khalifa family is Sunni Muslim and has been accused of practising "apartheid" against the Shia majority, including discrimination in government employment, education, and the justice system.

Shia Muslims in Bahrain have long faced discrimination and marginalization at the hands of the country's ruling Sunni elite. They are often excluded from government jobs and denied access to economic opportunities, which has led to higher unemployment rates and limited social mobility for the Shia community. This discrimination is institutionalized, with jobs in the police and armed forces being reserved for Sunnis, and certain neighbourhoods being off-limits to Shias. The Shia community also faces barriers in education, with Shia students being denied recognition of degrees obtained from foreign universities and facing challenges in accessing scholarships.

The Bahraini government has been accused of attempting to alter the demographic balance of the country by promoting the immigration of Sunni Muslims and granting them citizenship, while simultaneously targeting Shia religious figures, activists, and clerics with harassment, intimidation, arrests, and detention. Shia mosques and religious gatherings have been monitored, restricted, or banned, and there have been reports of Shia prisoners being denied their religious rights while incarcerated.

The international community, including the United Nations and the United States, has expressed concern over the treatment of Shia Muslims in Bahrain. There have been calls for the Bahraini government to end discrimination, respect freedom of religion, and ensure the full and equal participation of all citizens, regardless of religious affiliation. Despite some efforts at reform, the situation for Shia Muslims in Bahrain remains challenging, and they continue to face barriers and discrimination in various aspects of their lives.

Bahrain has the fourth-freest economy in the Middle East and North Africa

Bahrain is a wealthy country with the fourth-freest economy in the Middle East and North Africa. The country has a high-income economy, with the second-highest-valued currency unit in the world. Bahrain's economy is heavily dependent on oil and gas, with petroleum being the country's most exported product. However, Bahrain has been working to diversify its economy by investing in banking, tourism, and heavy industries.

The country's capital, Manama, is home to many large financial institutions, and Bahrain's banking and financial services sector 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. The country has also benefited from its oil boom, with economic growth of 5.5% since 2001. Bahrain's urgency to embrace economic liberalization is due to its limited oil supplies, and the government has used its oil revenues to invest in infrastructure development and improve the standard of living.

Bahrain has a well-developed road network, particularly in Manama, and a modern international airport. The country has also invested in education, with a well-regarded public school system and a high literacy rate of 95.7%. Additionally, Bahrain has a universal healthcare system, and healthcare expenditure accounts for 4.5% of its GDP.

Despite its wealth, there is a significant gap between the rich and poor in Bahrain. The Shiites, who make up 75% of the Muslim population, are often excluded from government jobs and form the poorest segment of society. They have faced discrimination and systematic processes of discrimination, which has led to dissatisfaction and protests. While the country officially reports that zero percent of people live below the poverty line, impoverished people do exist in Bahrain, and a fluctuating oil industry is one of the main causes of poverty.

The country excels in social and political sectors

Bahrain is a wealthy country, but there is a significant gap between the rich and the poor. While the country officially reports that zero per cent of people live below the poverty line, impoverished people do exist in Bahrain, albeit in small numbers. Despite this, Bahrain excels in many social and political sectors.

Firstly, Bahrain has one of the best political participation systems in the Persian Gulf. In 1999, Sheikh Hamad came to power and pronounced Bahrain a constitutional monarchy, changing his status from amir to king. The country now has a well-balanced elected parliament.

Secondly, Bahrain's education system is one of the best in the Persian Gulf. It was the first country in the region to create a public school system and allow females into all levels of education. Education is free for all children in Bahrain, and the literacy rate is an impressive 95.7 per cent.

Thirdly, Bahrain also leads in the area of women's rights in the Persian Gulf. Women have the right to run for public office, work alongside men in both the public and private sectors, and wear what they wish without restriction.

Finally, Bahrain has a strong economy, despite its heavy dependence on oil and gas. The country has the fourth-freest economy in the Middle East and North Africa region and is the 40th-freest economy worldwide. Bahrain's finance industry is particularly successful, and the country's capital, Manama, is home to many large financial institutions. Bahrain was named the world's fastest-growing financial centre by the City of London's Global Financial Centres Index in 2008. The country has also successfully diversified its economy into other sectors, including aluminium, finance, construction, banking, and tourism.

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