Trading Partner Portal: Bahrain
Overview
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. It is considered one of the most open economies in the Middle East and North Africa, with several free trade agreements, great infrastructure and strong financial institutions. The World Bank classifies Bahrain as a high-income country with a gross domestic product (GDP) of $43.2 billion and a population of 1.49 million people in 2023. 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.
U.S. – Bahrain Trade
The U.S. exported $1.68 billion worth of products to Bahrain in 2023. Key United States exports to Bahrain were transportation equipment and special classification provisions which composed $793 million and $216 million, respectively, of total exports to Bahrain. Other main exported goods were computer and electronic products ($137 million), electrical equipment, appliances and components ($124 million), and fabricated metals products ($94 million).
Bahrain’s export markets have been based in primary metal manufactures, petroleum, and textiles. The United States is one of their top trading partners. In 2023, the U.S. imported $1.17 billion worth of goods from Bahrain. Out of the goods imported, primary metals totaled $674 million. Other major imports from Bahrain were miscellaneous manufactures ($170 million), petroleum and coal ($150 million), textile mill products ($44 million), and plastic and rubber products ($41 million). U.S. Department of Commerce
Bahrain -California Trade
California is one of the top exporting states to Bahrain in the United States, California exported $63 million in goods to Bahrain in 2023. The top exported commodity was electrical equipment, appliances & components which totaled $12 million. Other major exported goods were transportation equipment ($11 million), computer and electronic products ($10 million), agricultural products ($8 million), miscellaneous manufactures ($6 million).
California imported $34 million worth of goods from Bahrain in 2023, an increase from $20 million in 2022. $31 million of those imports were primary metal manufactures, followed by $1 million in fish & other marine products. U.S. Department of Commerce
FDI – Bahrain
In 2023, Bahrain invested $195 million into the United States (BEA). In 2022, Bahrain had a total FDI stock of $622 million in the U.S. which supported 6,400 U.S. jobs. Bahrain has also invested $2.2 billion in research and development and $6.8 billion in expanding U.S. exports. The top industry sectors in the U.S that FDI from Bahrain goes into are communications and metals. SelectUSA
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
Posting First Rise Since 2014, U.S. Exports to Arab World Grow 4 PErcent to $62.64 Billion in 2019
National U.S.-Arab Chamber of Commerce, February 9, 2020
U.S. Goods Exports to Arab Countries 2018 vs. 2019
National U.S.-Arab Chamber of Commerce, February 2020
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
US Middle East Free Trade Initiative