Bahrain is a small Arab state located in a bay on the southwestern coast of the Persian Gulf. It is an archipelago consisting of Bahrain Island and around 30 smaller islands. Despite its size, Bahrain has one of the strongest economies in the world. The country's economy is heavily dependent on natural resources, particularly oil and natural gas, which have been the focus of the economy since the discovery of fossil fuels in the country.
What You'll Learn
Oil and natural gas
The oil sector is Bahrain's main source of income, with petroleum making up 60% of export receipts, 70% of government revenues, and 11% of GDP. In 2013, the production of Bahraini crude oil reached 198 thousand barrels per day (about 0.8% of the Arab production). The Bahrain Refinery refines more than 274 thousand barrels per day.
Bahrain's oil reserves are among the least in the region, with approximately 124 million barrels of oil. However, in 2018, the country discovered a deposit with significantly large deposits of gas and oil. The Khaleej al-Bahrain field is estimated to contain at least 80 billion barrels of shale oil, and the deposit could contain at least 10 trillion cubic feet of natural gas. This was the largest discovery in Bahrain's history.
Bahrain has a strong oil and gas sector, with companies such as Tatweer Petroleum, Bahrain Petroleum Company (BAPCO), Bahrain National Gas Company (Banagas), and Bahrain Liquefied Natural Gas Company (Bahrain LNG). Tatweer Petroleum has created the first cloud-based big data platform by collecting data from all IoT-related platforms and using them in machine learning to generate maintenance reports that predict problems before they occur.
The Bahraini government has also invested in advanced technologies to encourage the use of big data, Artificial Intelligence (AI), and the Internet of Things (IoT) in the oil and gas sector.
May Ashour: A Bahraini Icon
You may want to see also
Fishing
Bahrain is an archipelago of 33 islands, with Bahrain Island being the largest land mass. The country's territorial waters cover 7,499 square meters. Bahrain has a hot and humid summer and a very mild winter, with an average annual temperature range between 20-35 °C and humidity between 30-85%. The country's climate and location under the poverty belt of water mean that only 6.4 thousand hectares of land, approximately 9% of the total area, is arable.
Historically, fishing was one of the most important economic activities in Bahrain. However, after the discovery of oil in 1932, the fishing industry declined as many fishermen were attracted by the prospect of steady wages in the oil industry. By the early 1970s, fewer than 1,000 fishermen continued to ply their trade. This decline in the number of fishermen led to a decrease in the local fish supply, despite rising consumer demand. As a result, Bahrain had to import tons of fish to supplement the local catch.
Recognising the importance of the fishing industry, the Bahraini government launched a program in 1981 to revitalise the sector. This included introducing trawlers, motorising traditional fishing boats called dhows, expanding jetties, constructing cold storage facilities, and offering training courses on using and maintaining modern fishing equipment. These initiatives contributed to an increase in the total fish catch, which was estimated at 9,200 tons in 1989.
In recent years, Bahrain has been facing a decline in fish stock in its surrounding waters. Pollution in the Persian Gulf, especially from major oil slicks, has adversely affected the unique marine life in the area, including coral reefs, sea turtles, dugongs, oyster beds, and numerous fish species. To address this issue, the former Public Commission for the Protection of Marine Resources, Environment and Wildlife (now the Supreme Council for the Environment) has endorsed the routine practice of restocking the seas with farmed fish. This initiative has played a crucial role in the revival of the fishing industry in Bahrain.
Exploring Manama, Bahrain: Safe or Not?
You may want to see also
Arable land
Historically, arable land was even more important to Bahrain's economy. Before the discovery of oil, the most significant crop was dates, with over 20 varieties thriving in the country's climate. Date farming declined in the mid-20th century due to changing dietary patterns and reduced water availability for irrigation. Nevertheless, Bahrain has always aimed for self-sufficiency in agricultural and livestock production. In 2008, it achieved an estimated 96% self-sufficiency in dates, 90% in fish, 21% in white meat, 43% in eggs, 41% in milk and dairy products, 19% in vegetables, and 85% in green fodder.
The amount of land dedicated to agriculture in Bahrain has decreased over time. During the colonial period, nearly 25 square miles of land were used for agricultural purposes. After gaining independence, this area decreased significantly to around 6 square miles. The Bahraini Royal Family currently owns the majority of the productive agricultural land in the country. In 2004, approximately 1% of the Bahraini workforce was employed in the agricultural sector, according to estimates from the Bahraini labour department.
Bahrain and Saudi Arabia: Two Nations, One Shared History
You may want to see also
Aluminium
Alba's inception marked the beginning of Bahrain's strategy to diversify its economy away from oil. Alba's production is powered by electricity from three power stations fuelled by nearby gas fields. The company is majority-owned by the Bahrain Mumtalakat Holding Company (69.38%), with the remaining shares held by the SABIC Investment Company (20.62%) and the General Public (10%). Alba went public in 2010, launching its first IPO, and was listed on the Bahrain Bourse and the London Stock Exchange under the symbol "ALBH".
Alba's plant includes six reduction lines, four cast houses, four carbon plants, a petroleum coke calciner and seawater desalination plant, 12 fume treatment plants, a marine terminal, and five power stations. Alba produces high-quality molten aluminium with an average purity exceeding 99.85%. The company's major customers for molten aluminium include Midal Cables, Bahrain Alloys Manufacturing Company (BAMCO), Bahrain Welding Wire Products Mfg. Co. (BWP), and Bahrain Atomizers International (BAI).
Alba's extrusion ingot is widely used in the construction industry for windows and door frames, transportation, engineering, and consumer durables. The company also produces P1020 and higher-grade LME sows, which are used in many remelting and casting applications, including fabrication into various end products such as pressure cookers and the facades of skyscrapers. Alba is one of only two smelters in the world with a dedicated coke calciner, with a production capacity of nearly 550,000 metric tons per annum. Calcined Petroleum Coke (CPC) is a critical raw material used in the production of carbon anodes for the aluminium smelting process.
Alba's seawater desalination plant was commissioned in 2001 and utilises waste heat from the calcining process to generate steam for the production of potable water. This water is sold to Bahrain's Electricity & Water Authority for general consumption in the Kingdom and is also used for various purposes within the company, including irrigating the Her Royal Highness Princess Sabeeka Oasis.
Bahrain's Robotic King: Fact or Fiction?
You may want to see also
Livestock
Bahrain is an archipelago of 33 islands, with Bahrain Island being the largest land mass. The country has a strong economy, driven by sectors that make great use of its limited natural resources.
The country's climate and geographical location present challenges for agriculture, with only 6.4 thousand hectares of arable land, constituting approximately 9% of the total land area. The majority of Bahrain's land is rocky limestone covered by dunes of dry sand and salt. The climate is characterised by high heat and humidity in the summer, and mild winters, with average annual temperatures ranging from 20-35°C.
Historically, Bahrain's economy was heavily reliant on trade, but today it is focused on the production of fossil fuels, particularly oil and natural gas. In addition to these fossil fuels, arable land and minerals such as aluminium are also important natural resources for the country.
Exploring Bahrain's Culinary Delights: A Personal Journey
You may want to see also
Frequently asked questions
The natural resources of Bahrain include oil, natural gas, fishing, arable land, and minerals such as aluminium.
Bahrain has approximately 124.6 million barrels of proven oil reserves. In 2012, it was estimated that Bahrain's oil reserves were 120 million barrels, constituting 0.02% of Arab oil reserves and 0.01% of world oil reserves.
In 2012, Bahrain's natural gas reserves were estimated at 92 billion cubic meters, constituting 0.17% of Arab reserves and 0.05% of global reserves.
Oil is the most important natural resource in Bahrain, with the oil sector being the country's main source of income.