Bahrain

According to a report by the United Nations Economic and Social Commission for Western Asia, Bahrain has the fastest growing economy in the Arab world. Bahrain also has the freest economy in the Middle East and is twelfth freest overall in the world based on the Index of Economic Freedom published by the Heritage Foundation/Wall Street Journal. Bahrain was named the world’s fastest growing financial center by the City of London’s Global Financial Centres Index. Bahrain’s banking and financial services sector, particularly Islamic banking, have benefited from the regional boom driven by demand for oil. Petroleum production and processing account is Bahrain’s most exported product, accounting for 60% of export receipts, 70% of government revenues, and 11% of GDP. Aluminium production is the second most exported product, followed by finance and construction materials. With its highly developed communication and transport facilities, Bahrain is home to a number of multinational firms and construction proceeds on several major industrial projects. A large share of exports consist of petroleum products made from imported crude oil, which account for 51% of the country’s imports. Bahrain depends heavily on food imports to feed its growing population; it relies heavily on meat imports from Australia and also imports 75% of its total fruit consumption needs. Since only 2.9% of the country’s land is arable, agriculture contributes to 0.5% of Bahrain’s GDP. Bahrain signed the US-Bahrain Free Trade Agreement, which will reduce certain trade barriers between the two nations.