Trading Partner Portal: Bahrain


Trade Overview


The Kingdom of Bahrain is in the Middle East, just east of Saudi Arabia. Bahrain encompasses a group of islands in the Persian Gulf three times the size of Washington D.C. The World Bank classifies Bahrain as a high income country with a gross domestic product (GDP) of $31.126 billion and a population of 1.377 million people. World Bank

The United States and Bahrain have an established trade relationship, partly due the bilateral free trade agreement that was enacted in 2006. In addition to having a founded trade relationship, there is bilateral foreign direct investment (FDI) across their borders. In 2015, out of the $48.5 billion of direct investment the United States had in the Middle East, $168 million was invested into Bahrain. In 2016, Bahrain invested $1.1 billion into the United States, up significantly in the past 5 years.. BEA This FDI in the U.S. from Bahrain supports 15,200 U.S. Jobs. $11 million went towards investing in innovative research and development. $67 million went into expanding U.S. exports. The top industry sectors in the US that FDI from Bahrain goes into are software and IT services, transportation, communications, and metals. SelectUSA

ca-exports-to-bahrain-2015Bahrain’s export markets have been based in petroleum, aluminum, and textiles. The United States is one of their top trading partners. In 2016, the US imported $768 million worth of goods from Bahrain, down from $902 million in 2015. Out of the goods imported, 52.9% was classified as primary metals and totaled $406 million. Other major imports from Bahrain were apparel manufacturing products, textile mill products, and petroleum. The US exported $902 million worth of products to Bahrain the same year. Key United States exports to Bahrain were transportation equipment and special classification products which composed 30.8% and 22.9%, rescpetively, of total exports to Bahrain. Other main exported goods to Bahrain were non-electrical machinery and computer and electronic products. US Department of Commerce

Bahrain -California Trade

California is one of the top exporting states to Bahrain in the US. California exported $64 million in goods to Bahrain in 2016. The top exported commodity was transportation equipment, which totaled 26% of total exports to Bahrain from California, and had a worth of $16 million. Other major exported goods were computer and electronic products, electrical equipment, and used or second hand merchandise. California imported $15 million worth of goods from Bahrain in 2016. 57% of those imports were miscellaneous manufactured commodities with a value of $8.9 million. The second key import was primary metals totaling $2 million. US Department of Commerce

Current News

After the uprising events in 2011, the Bahrain Independent Commission of Inquiry (BICI) was established on June 29th, 2011. Their goal was to investigate the events and the outcomes. The holistic report that was accepted locally and internationally received significant cooperation from the government. The report was released in November of 2011 and recommended actions to be taken by the government to improve stability and protection of human rights. Recently, Bahrain has celebrated their full implementation of the recommendations made from the BICI report and looks forward to continuing reform. Bahrain Independent Commission of Inquiry

Trade Agreements

Trade Agreements and Issues

The United States- Bahrain Free Trade Agreement

The United States entered into a free trade agreement with Bahrain in January of 2006. Goals of the agreement included the expansion of the US’ export opportunities in the Middle East and the creation of more jobs for US workers. It promotes Bahrain’s economic and political reforms. It has resulted in a strong bilateral trade relationship with the United States and Bahrain. The day the agreement became official and opened, 100% of all industrial and consumer products moved across their borders tariff free. United States agricultural exports increased with an elimination of 81% of tariffs and Bahrain opened their service sector leading to an expansion of market opportunity for companies in the United States. The free trade agreement not only was successful with the agricultural and service sectors, but also was beneficial to industries such as pharmaceuticals, machinery, and aircraft. USTR

Bahrain Free Trade Agreement

US Middle East Free Trade Initiative