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 $47.74 billion and a population of 1.59 million people in 2024. 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 ($758 million) and other special classifications provisions ($237 million). Other main exported goods were computer and electronic products ($156 million), chemicals ($112 million), and electrical equipment, appliances and components ($101 million).
In 2024, the U.S. imported $1.65 billion worth of goods from Bahrain. Out of the goods imported, primary metals totaled $772 million. Other major imports from Bahrain were petroleum and coal ($232 million), miscellaneous manufactures ($54 million), textile mill products ($52 million), and goods returned ($45 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 $89 million in goods to Bahrain in 2024. The top exported commodity was electrical equipment, appliances & components which totaled $51 million. Other major exported goods were agricultural products ($9 million), computer and electronic products ($6 million), processed foods ($6 million), and transportation equipment ($4 million).
California imported $26 million worth of goods to Bahrain in 2024, $23 million of those imports were primary metal manufactures This was followed by goods returned ($1 million), used or secondhand merchandise ($1 million), and plastics and rubber products and miscellaneous manufactures at less than $1 million. 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