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• GDP: US$13.01 billion (2003 estimate).
• Main exports: Petroleum and petroleum products, aluminum and textiles.
• Main imports: Crude oil, machinery and chemicals.
• Main trade partners: USA, Korea (Rep), Saudi Arabia, Japan, UK and Germany.
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Oil dominates Bahrain’s economy and, together with gas and petrochemicals, accounts for the bulk of exports and government
revenue. That proportion is falling, however, as Bahrain seeks to diversify its economy and the reserves dwindle. Several
successful industrial projects, including aluminium production, an iron-ore processing facility and an ammonia-methanol plant,
have been set up. In the service sector, the financial services industry has expanded dramatically in recent years, as companies
trading in the region have set up their regional centres in Bahrain, where the relatively relaxed environment is an important
factor in a region where rigorous social mores are often the norm. In June 2000, Bahrain was identified by the Organisation
for Economic Cooperation and Development (OECD) – the world’s 30 wealthiest economies – as one of 35 countries whose financial
laws are believed to encourage large-scale tax evasion and possible money laundering. The government has since taken measures
to meet the OECD’s demands, thereby avoiding the threat of future sanctions. In September 2004, a Free Trade Pact was signed
with the US. However, Saudi Arabia condemned the move, saying it hindered regional economic integration.
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Overview 
