Bahrain's Proactive Measures To Address Potential Concerns

Bahrain, officially the Kingdom of Bahrain, is a small island country in West Asia. It is situated on the Persian Gulf and is bordered by Qatar and Saudi Arabia. The country has a population of around 1.5 million people and its capital and largest city is Manama. Bahrain has a long history, dating back to ancient civilizations, and was one of the earliest areas to be influenced by Islam.

In recent years, Bahrain has faced several challenges and potential worries, including human rights violations, economic instability, and political unrest. There have been reports of authorities cracking down on protestors, dissidents, and opposition figures, with a violent crackdown on protestors in 2021 posing a threat to regional stability. Bahrain has also struggled with economic diversification, high public debt, and a decline in oil prices, which has impacted its finances.

However, Bahrain has also made efforts to address these issues and improve its situation. The country has a relatively diversified economy, with investments in banking, tourism, and heavy industries. It has also implemented labour reforms to meet international standards and has a successful financial sector, with many large financial institutions present in the country. Additionally, Bahrain has taken steps towards democratization, such as holding parliamentary elections and granting women the right to vote.

Overall, while Bahrain faces potential worries and challenges, it is also making efforts to address these issues and improve the lives of its citizens.

Bahrain is working to diversify its economy beyond oil and gas

Bahrain has been working to diversify its economy beyond oil and gas for many years. Since the late 20th century, Bahrain has invested heavily in the banking and tourism sectors. Bahrain's finance industry is very successful, and the country was named the world's fastest-growing financial centre by the City of London's Global Financial Centres Index in 2008. Bahrain's banking and financial services sector, particularly Islamic banking, have benefited from the regional boom driven by demand for oil.

Bahrain has also sought to diversify its manufacturing industries. The country has targeted plastics, fibreglass, chemicals, petrochemicals, and food processing as areas for expansion. Bahrain's largest manufacturing sector is Aluminium Bahrain (ALBA), which operates the fourth-largest aluminium plant globally by individual smelter capacity.

Bahrain's economy is still heavily dependent on oil and gas, which account for around 75% of government revenues. However, the country has made significant progress in diversifying its economy, and the non-oil sector is showing robust growth. In 2023, Bahrain's GDP grew by 2.45%, with the non-oil sector increasing by 4.48%. This indicates the country's successful efforts towards economic diversification.

Bahrain's economic diversification is crucial for its stability, as low oil prices and political risks have impacted the country's credit risk and liquidity situation. Bahrain's public finances remain a cause for concern, with high levels of public debt and fiscal and external vulnerabilities. However, the country's rich Gulf neighbours, such as Saudi Arabia, have provided financial support to Bahrain in the past and are expected to continue to do so if needed.

The country is trying to improve its human rights record

In September 2011, a government-appointed commission confirmed reports of grave human rights violations, including systematic torture. The government promised to introduce reforms and avoid repeating the "painful events". However, reports by human rights organisations Amnesty International and Human Rights Watch issued in April 2012 said the same violations were still happening.

In 2019, Bahrain widened its suppression of online and social media activity. The Bahraini Interior Ministry declared that it will prosecute people who follow "inciting accounts" or share their posts on Twitter. Despite this, there have been some positive developments. In 2011, after the Arab Spring uprising, Hamad bin Isa Al Khalifa became the Emir of Bahrain. He instituted elections for parliament, gave women the right to vote, and released all political prisoners. A referendum in 2001 massively supported the National Action Charter, and as part of the adoption of the Charter in 2002, Bahrain changed its formal name from the State of Bahrain to the Kingdom of Bahrain.

In 2006, Bahrain's first female cabinet minister, Nada Haffadh, was appointed as Minister of Health. In 2014, Bahrain amended its citizenship revocation laws, restricting the power to strip nationality from the King and the judiciary to the cabinet. In 2018, during the Eid al-Adha, King Hamad issued a royal pardon for 105 detainees, including activist Najah Yusuf, who had been imprisoned and subjected to physical abuse and sexual assault after criticising the Formula One races in Bahrain on social media.

However, Bahrain's human rights record remains dire. Authorities continue to ban all independent media from operating in the country, dissolve all opposition groups, and crack down on critical online posts. The government executed three people in July 2019, including two prisoners who were convicted in a mass trial marred by serious due process violations and allegations of torture. Authorities continue to arrest, convict, and harass prominent human rights defenders, journalists, and opposition leaders.

Bahrain is developing its tourism industry

Bahrain is an island country in West Asia, situated in the Persian Gulf. It has a rich history, having been famed for its pearl fisheries since ancient times. Today, Bahrain is recognised as a high-income economy by the World Bank, with a diversified economy that includes oil and gas, international banking, and tourism.

Bahrain has been investing in its tourism sector for decades, and it is now a significant source of income for the country. In recent years, the Bahraini government has implemented several economic reforms to boost its image as a tourist destination. The country aims to position itself as a compact island destination with short travel times and an authentic Arab experience, setting itself apart from the regional economic and tourism powerhouse of Dubai.

Bahrain has a lot to offer tourists, from its archaeological legacy, dating back to the ancient Dilmun civilisation, to its modern Arab culture. Here are some of the ways in which Bahrain is developing its tourism industry:

• Infrastructure Development: Bahrain has a well-developed road network, particularly in the capital city of Manama. The country also has an international airport, Bahrain International Airport, and a modern, busy port offering direct and frequent cargo shipping connections to the US, Europe, and the Far East.
• Attracting International Events: Bahrain has successfully attracted international events, such as the Bahrain Grand Prix, which has raised the kingdom's international profile. The country also hosts an annual festival, "Spring of Culture," featuring internationally renowned musicians and artists.
• Promoting Cultural and Historical Sites: Bahrain has several historical and cultural sites that attract tourists, such as forts, museums, and ancient temples. Qalat Al Bahrain, a UNESCO World Heritage Site, and the Bahrain National Museum, which showcases artefacts from the country's long history, are popular tourist attractions.
• Eco-Friendly Initiatives: Bahrain is developing eco-friendly tourism initiatives, such as the underwater theme park, which includes artificial coral reefs, sculptures, and a sunken Boeing 747.
• Improving Business Environment: Bahrain has been recognised for its pro-business stance and favourable commercial and trading environment by independent international assessments. The country's regulatory and legal frameworks are generally business-friendly, attracting foreign investment and contributing to the growth of the tourism sector.
• Diversifying Tourism Offerings: Bahrain offers a range of tourist activities beyond its cultural and historical sites. Bird watching, scuba diving, and horse riding are popular nature-based tourism activities. The country also has several shopping malls, souqs, and gold souqs that attract tourists, particularly from the surrounding Arab states.

The nation is investing in its military

Bahrain is investing in its military, which currently numbers around 8,200 personnel. The country's military is known as the Bahrain Defence Force (BDF) and includes the Royal Bahraini Army, the Royal Bahraini Naval Force, and the Royal Bahraini Air Force.

The BDF is primarily equipped with US-made equipment, such as F-16 Fighting Falcon and F-5 Freedom Fighter aircraft, UH-60 Blackhawk helicopters, and M60A3 tanks. In addition, Bahrain has a frigate, the ex-USS Jack Williams, which was renamed the RBNS Sabha. Bahrain was also the first Gulf country to operate the F-16.

In August 2020, the UK transferred the HMS Clyde to the Royal Bahraini Naval Force, renaming it the RBNS Al-Zubara. In January 2024, Bahrain received a second frigate, the former USS Robert G. Bradley, which was renamed the RBNS Khalid bin Ali. Bahrain's air force is expected to receive 16 aircraft of the modernized F-16 Block 70 variant in 2024, adding to its current fleet of F-16C/D and F-5E/F fighters. The Royal Bahraini Army has 180 M60A3 main battle tanks, with 100 in active service and 80 in storage.

Bahrain has close relations with the US and has provided a base for US military operations in Juffair since the early 1990s. The US Fifth Fleet is headquartered in Bahrain, and around 6,000 US military personnel are stationed there. Bahrain also participates in the Saudi-led intervention in Yemen and has established bilateral relations with 190 countries worldwide.

While Bahrain's military spending has contributed to its public debt, which is expected to rise to 155% of GDP by 2026, the country's rich Gulf neighbours are expected to continue providing financial support if needed to avoid a full-blown financial crisis.

Bahrain is taking steps to improve its food security

Bahrain's efforts to diversify its economy away from oil are also contributing to food security improvements. While oil and gas still play a dominant role in the country's economy, Bahrain has expanded into banking, heavy industries, retail, and tourism. The Kingdom is now the main banking hub for the Persian Gulf and a center for Islamic finance, attracting major international financial institutions. Additionally, Bahrain has a successful finance industry, with its banking and financial services sector benefiting from the regional boom driven by oil demand.

The country has also initiated a series of labor reforms to bring the labor market in line with international standards and expand its high-tech industries. Bahrain intends to invest in research and development and strengthen its competitive edge in the global economy. These initiatives are expected to have a positive impact on the country's food security by reducing its dependence on imports and enhancing its economic resilience.

Furthermore, Bahrain has a well-developed road network, modern airport, and busy port, which facilitate the import of goods, including food products, and contribute to the country's food security efforts. The country's advanced infrastructure in transportation and telecommunications has also played a role in attracting foreign investment and supporting economic diversification.

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