Lucrative Exports To Bahrain: Best Products To Consider

Bahrain's economy is heavily dependent on oil and gas, with petroleum being the country's most exported product, accounting for 60% of export receipts. In 2022, Bahrain exported $22.3 billion worth of goods, with mineral fuels including oil making up $7.1 billion of that figure. The country's second-most exported product is aluminium, which brought in $6.9 billion in 2022. Bahrain's other major exports include ores, slag, ash, machinery, iron and steel, and dairy, eggs, and honey. The country's main trading partners include Saudi Arabia, the United Arab Emirates, the United States, and Japan.

Aluminium products

The country's aluminium industry is dominated by Aluminium Bahrain B.S.C. (Alba), which operates the largest single-site aluminium smelter in the world. Alba's output alone represented approximately 12% of Bahrain's GDP in 2017, and the company estimates that this will rise to 15% following the completion of its current expansion project. With a production capacity of over 1.62 million metric tonnes per annum, Alba produces a range of aluminium products, including:

• Standard Ingots (10KG and 22.5KG)
• Rolling Ingots (Slabs)
• T-Ingots
• Properzi Bars (Foundry Alloys)
• P1020 and higher-grade LME Sows
• Molten Aluminium
• Extrusion Ingots (Billets)

Alba's products are used in a wide range of applications, from construction and transportation to the manufacturing of automotive products and aluminium beverage cans. The company's major customers include Midal Cables, Bahrain Alloys Manufacturing Company, Bahrain Welding Wire Products, and Bahrain Atomizers International.

In addition to Alba, there are several other significant players in Bahrain's downstream aluminium products segment, including:

• Gulf Aluminium Rolling Company (GARMCO): A producer of aluminium sheets, coils, embossed slitted coils, and checkered plates.
• Midal Cables: A manufacturer of aluminium rods, wires, and aluminium-clad steel.
• Bahrain Aluminium Extrusion Company: A construction products manufacturer with a production capacity of 33,000 metric tonnes per annum.
• Bahrain Alloys Manufacturing Company: With a capacity of 30,000 metric tonnes per annum.

Refined petroleum

Secondly, Bahrain has a strong oil and gas sector, which contributes significantly to its economy. Oil exports, in particular, bring in over 70% of government revenue. This indicates that the country has the infrastructure and resources to support the production and export of refined petroleum.

Thirdly, Bahrain has been actively investing in and developing its oil and gas sector. In 2021, the Bahraini government implemented reforms to restructure the sector, and they plan to release a National Energy Strategy to outline changes to state-owned enterprises and highlight strategic priorities. Bahrain is also carrying out a $7 billion upgrade of the BAPCO refinery, which will boost its processing capacity and improve energy efficiency and emissions.

Finally, Bahrain has strong trade relationships with its neighbouring countries and is engaged in global markets. Its closest trading partners for refined petroleum include Saudi Arabia, China, and India. This diverse range of trade partners ensures a broader market for refined petroleum exports.

By exporting refined petroleum to Bahrain, businesses can take advantage of the country's strong oil and gas sector, established trade relationships, and ongoing investments in refinery infrastructure.

Machinery

When it comes to machinery imports, Bahrain's top trading partners vary. In 2023, the country imported $1.8 billion worth of nuclear reactors, boilers, machinery, and mechanical appliances, with parts thereof, from various sources. This category accounted for 11.7% of all commodity imports into Bahrain that year. The top import sources for this category were China, the United Arab Emirates, Brazil, Australia, and Saudi Arabia.

The machinery sector in Bahrain is not limited to traditional mechanical appliances but also includes electrical machinery and equipment. In 2022, Bahrain had a trade deficit in electrical machinery, equipment, and parts thereof, indicating that imports exceeded exports in this specific sub-sector. Bahrain's exports of electrical machinery, equipment, and parts thereof are not among its top 10 exports, suggesting that the country may be relying on imports to meet its domestic demand for these products.

Given the significant import value and the existing trade deficit in certain machinery-related sectors, there may be opportunities for foreign businesses to export machinery products to Bahrain. However, it is important to consider factors such as local regulations, market demand, and competition from other suppliers when exploring export opportunities to Bahrain or any other country.

Financial services

Bahrain's financial services sector is a key component of its economy, with the country being a major player in the Middle East and North Africa (MENA) region for banking and investment.

In 2022, Bahrain exported $2.39 billion worth of services, with financial services being one of the leading exports to Bahrain from the US. Bahrain's financial services sector has been growing, with the country's exports of services increasing by 41% from 2012 to 2022.

The country is home to a well-developed banking industry, with a strong presence of regional and international banks. Bahrain's banking sector is known for its stability and has a robust regulatory framework, making it an attractive destination for foreign investment. The country's financial services sector is supported by a skilled workforce, with many professionals trained in international finance and banking.

Bahrain's financial services sector offers a range of products, including investment banking, asset management, insurance, and Islamic finance. The country has positioned itself as a hub for Islamic finance, with a growing number of Islamic financial institutions and Sharia-compliant products. Bahrain's regulatory framework for Islamic finance is recognised as one of the most advanced in the world.

In addition to its strong banking sector, Bahrain has also developed a robust capital market. The Bahrain Stock Exchange (BSE) is one of the oldest and most established stock exchanges in the MENA region, providing a platform for companies to raise capital and investors to access a diverse range of investment opportunities. The BSE has a strong focus on transparency and regulatory compliance, making it an attractive option for regional and international investors.

For companies looking to export financial services to Bahrain, there are several opportunities to consider. These include:

• Investment banking and asset management: Bahrain's growing economy and business-friendly environment make it an attractive destination for investment.
• Insurance: Bahrain has a growing demand for insurance products, including life, health, and property insurance.
• Islamic finance: With Bahrain's focus on developing its Islamic finance sector, there are opportunities for companies specialising in Sharia-compliant financial products and services.
• Financial technology (Fintech): Bahrain has been investing in its fintech sector, creating a supportive ecosystem for startups and established companies. There are opportunities for companies offering innovative digital financial solutions.

Construction materials

The construction industry in Bahrain relies on a variety of materials, including both locally sourced and imported products. The country's high demand for construction and its position as a major trading hub in the Middle East contribute to a diverse range of options for builders.

Building Materials in Bahrain:

Bahrain has a large range of building materials available due to its high demand for construction and its proximity to other nations in the region. The country offers a wide selection, from fundamental components like cement and sand to finishing touches such as tiles and bricks.

Sustainable and Eco-Friendly Focus:

There is a growing consumer preference for eco-friendly and sustainable building materials in Bahrain. This trend is driven by a heightened awareness of environmental issues and a desire for energy-efficient and cost-effective solutions. As a result, there is an increasing demand for green building materials such as bamboo, recycled plastic, and sustainable wood.

Imported Construction Materials:

Given Bahrain's strategic location and its role as a trading hub, most building materials can be easily imported. The country's imports cater to the construction industry, carpentry, and traders in the market. Some of the imported construction materials include:

• MDF (Medium-Density Fibreboard) from Thailand and Malaysia
• Film-faced plywood from Bahrain, with brands like SMARTCORE and SMARTFORM
• Commercial plywood from Indonesia, used for interior applications
• White cement and adhesives from Egypt, approved by the Ministry
• Tiles, mosaic, and stones adhesives and grouts from the UAE
• Water heaters from Oman, with Italian-made accessories
• Steel products like GI lintels from the UAE

Local Suppliers:

Bahrain also has numerous local suppliers of building materials, ensuring a consistent provision of products at competitive prices. Examples of local companies include:

• Al Amar Overseas Trading Est., serving the building materials industry since 1991
• Projects Construction Company WLL, a wholly-owned Bahraini group with over 1000 employees
• Al Nasser for Hiring Building Equipment, providing equipment for the construction industry since 1989
• Matrook Intercontinental Building Solutions SPC, a leading provider of building solution chemicals
• Awal Readymix Concrete Co WLL (ARMCON), a Bahraini company producing ready-mixed concrete

Frequently asked questions