Bahrain's Trade: Imports And Exports Overview

Bahrain's exports and imports are an important aspect of its economic landscape. In 2022, Bahrain exported goods worth $22.3 billion, with mineral fuels, aluminium, and ores being the top categories. The country's major trading partners include Saudi Arabia, the USA, and the United Arab Emirates. Imports to Bahrain totalled $15.4 billion in 2022, with iron ore, aluminium oxide, and cars as the top imports, mainly from China, the United Arab Emirates, and Brazil. Bahrain's exports and imports have seen fluctuations over the years, with changes in trade values and partners, impacting its economic performance and trade balances with other nations.

Bahrain's top exports

In 2022, Bahrain exported a total of 20.7 billion worth of goods, making it the 77th largest exporter in the world. The top exports of Bahrain are raw aluminium ($4.75 billion), refined petroleum ($4.3 billion), iron ore ($2.16 billion), aluminium wire ($729 million), and aluminium plating ($564 million).

In 2022, Bahrain was the world's biggest exporter of aluminium wire ($729 million). The country's other top exports include mineral fuels including oil ($7.1 billion), ores, slag, and ash ($2.2 billion), machinery including computers ($800.9 million), and iron and steel ($700.8 million). Bahrain's exports in 2022 also included dairy, eggs, and honey ($481 million), fertilisers ($427.4 million), articles of iron or steel ($425.4 million), gems and precious metals ($355.1 million), and plastics and plastic articles ($308.9 million).

The most common destinations for Bahrain's exports are Saudi Arabia ($3.03 billion), the United Arab Emirates ($2.07 billion), the United States ($1.83 billion), Japan ($1.07 billion), and India ($928 million). From a continental perspective, 57.2% of Bahrain's exports by value were delivered to Asian countries, while 15.7% were sold to North American importers. Bahrain shipped another 15.5% worth of goods to European customers, with smaller percentages going to buyers located in Africa (8.8%), Latin America (1.6%), Oceania (1.4%), and other parts of the world.

Bahrain's top imports

The top import commodities to Bahrain in 2023 were:

• Iron ores and concentrates, including roasted iron pyrites (10.4%, $1.6 billion)
• Artificial corundum, aluminium oxide, and aluminium hydroxide (7.76%, $1.19 billion)
• Motor cars and other motor vehicles for transporting people (5.78%, $888 million)
• Gold, including gold plated with platinum, in unwrought or semi-manufactured forms, or in powder form (3.83%, $589 million)
• Electrical apparatus for line telephony or line telegraphy (3.06%, $470 million)

The top import partners for Bahrain in 2023 were:

• China (14%, $2.14 billion)
• United Arab Emirates (9.38%, $1.44 billion)
• Brazil (9.06%, $1.39 billion)
• Australia (8.17%, $1.25 billion)
• Saudi Arabia (6.35%, $976 million)

Bahrain's trade partners for exports

In 2022, Bahrain exported a total of $20.7 billion worth of goods, making it the 77th largest exporter in the world. The country's top exports include raw aluminium, refined petroleum, iron ore, aluminium wire, and aluminium plating.

Bahrain's principal export partners are Saudi Arabia, the United Arab Emirates, the United States, Japan, and India. These five countries accounted for 57.2% of Bahrain's exports by value in 2022.

Saudi Arabia

Saudi Arabia is Bahrain's largest export market, receiving 19.4% of all Bahraini exports in 2022, valued at $3.03 billion. The majority of these exports consist of raw aluminium and refined petroleum.

United Arab Emirates

The United Arab Emirates (UAE) is the second-largest export destination for Bahraini goods, accounting for 10.4% of the country's exports in 2022, or $2.07 billion. Like Saudi Arabia, the UAE imports primarily raw aluminium and refined petroleum from Bahrain.

United States

The United States is another key export market for Bahrain, receiving 12.2% of its exports in 2022, valued at $1.83 billion. Bahrain's exports to the US include aluminium wire, machinery, and fertilisers.

Japan

Japan is a significant export partner for Bahrain, taking in 5.6% of its exports in 2022, or $1.07 billion. Japanese imports from Bahrain consist mainly of raw aluminium and aluminium wire.

India

India is another important export market for Bahrain, accounting for 3.18% of its exports in 2022, worth $928 million. Raw aluminium and ores, slag, and ash are the primary Bahraini exports to India.

Other notable export destinations for Bahrain include the Netherlands, Oman, Türkiye, Italy, Egypt, Mexico, and South Korea.

Bahrain's trade partners for imports

Bahrain's main import is crude petroleum, which is brought in by underwater pipeline from Saudi Arabia to be refined. Other major imports include machinery, food, and chemicals. In 2021, Bahrain's major trade partners for imports were Brazil, China, the United Arab Emirates, Australia, and Saudi Arabia. In 2022, the top five countries that Bahrain imported from were China, the United Arab Emirates, Brazil, Australia, and India.

Bahrain has bilateral and economic agreements with over 40 countries, including free trade agreements with the United States, Singapore, and the EFTA states (Iceland, Liechtenstein, Norway, and Switzerland). It also has duty-free access to the 17 Arab states party to the Greater Arab Free Trade Agreement (GAFTA). Bahrain has signed agreements with 34 countries for the promotion and protection of investment and with 41 countries for the avoidance of double taxation.

In terms of imports, the United States exported $1.7 billion worth of goods to Bahrain in 2023, up 76.4% from 2022. Leading services exports from the US to Bahrain were in the transportation, financial services, and telecommunications, computer, and information services sectors. Bahrain's FDI in the United States was $124 million in 2022.

The Bahrain International Airport (BIA) Modernization Program has increased the airport's annual passenger capacity from 8 million to 14 million and expanded cargo handling capacity to 1 million metric tons per year. The Bahrain Metro Project, estimated at $2 billion, will cover 109 km with four transit lines and 20 passenger stations. The King Hamad Causeway will link Bahrain and Saudi Arabia and boost overland access to Saudi Arabia and the wider GCC market.

Bahrain's economy

The country's economy is not solely dependent on exports, however, as the service sector, particularly tourism, is the fastest-growing segment. Bahrain actively promotes tourism, leveraging its balmy climate and scenic location. The country is a popular destination for travellers from other, more conservative Persian Gulf countries, who are attracted to Bahrain's more liberal society. Additionally, visitors from outside the region are drawn to Bahrain for its unique cultural offerings and pleasant climate.

In terms of Bahrain's workforce, the majority is male, with women constituting about one-fifth of the total. The Bahraini government encourages female employment, especially to increase indigenous employment. The standard work week in Bahrain is Saturday through Wednesday, and the country has no individual income tax. An excise tax on select products, such as carbonated beverages and tobacco, was introduced in 2017, and a value-added tax for most goods and services was implemented in 2019.

Bahrain's transport and telecommunications infrastructure is well-developed. The country boasts an excellent network of paved roads and causeway connections to nearby islands and Saudi Arabia. While there are no railroads, bus and taxi services adequately serve the principal towns and villages, and a large proportion of residents own motor vehicles. Bahrain International Airport is one of the busiest in the Middle East, serving most major international airlines. In terms of telecommunications, Bahrain Telecommunications Company (Batelco) serves the country's telephone, wireless, data, and internet needs. Batelco has established an underwater fibre-optic cable network connecting Bahrain to several other countries in the region.

Frequently asked questions