Many Economies around the world are heavily energy dependent. Producing and refining the energy resources that people use on a daily basis is a task that is needed and very lucrative. Energy producing nations are always looking for the latest technological advancements to extract these resources in the most environmentally friendly ways. Preservation of the earth is imperative in the utilization of these resources. Extraction of these resources in a non sustainable way could lead to the resource being irreversibly depleted. The country Bahrain top export is oil and natural gas, like many other nations in the region, though not as large. This financial capital of is one of the freest economies on earth.
Petroleum, aluminum, banking and tourism are the top exports of Bahrain. Accounting for over 70% of government revenues, petroleum is by far the most lucrative Bahraininan export. Far from being the top producing exporter in the middle eastern/northern Africa region. It still remains a formidable force in the global petroleum trade. Aluminum comes second to petroleum as a viable resource that Bahrain produces in abundance. The financial and tourism sector are industries that have made their marks in recent years, as natural resources peaked and are now declining. As the world is moving towards a more sustainable energy resources, Bahrain Economics has been negatively impacted. This quest for a greener approach to energy needs globally has led to budget deficits in Bahrain, an already small oil producer in the Middle East.
Do to the diminishing oil supply in Bahrain other industries such as international banking have become more of the focus. The thriving financial sector has led to Bahrain being deemed the business capital of the gulf. Many multinational firms call Bahrain home, with highly developed transportation and communication facilities Bahrain is favored in the region. Aluminum products have also been an incentive as oil production has slowed. A variety of aluminum products are produced in Bahrain, such as billets, liquid metal, slab, etc. Producing over 900,00 metric tons of aluminum, Bahrain is one of the top aluminum smelters worldwide. Oil export still remain the bread and butter for the Gulf nation, although it may be the first of the gulf states to exhaust its reserves. Due to this inevitable outcome Bahrain is moving towards more sustainable industries.
Regulation has also taken its toll on Bahrain economy. Opec compliance has led to production cuts as environmental considerations have become stringent. Fixed investment in the country is strong being that bank lending has increased due to low interest rates. Petroleum merchandise products also are on the rise. The overall outlook is positive and is due to accelerate as financial support comes in from neighboring nation states. Public spending will remain an issue due to weak government finances.
Looking ahead Bahrain will look to push their financial industry even further, as they have been deemed the modern economic center of the middle east. Its economy is considered to be modern, open and free. Recognized as a high income economy by the World Bank, Bahrain is attracting more foreign investment than ever. Reducing its dependence on oil is what has led to the modern economic progress. Real estate has become of interest, as Bahrain has one of the strongest markets in the region. Infrastructure development is a top priority as more foreign business is attracted. The tourism industry in Bahrain remains vital and is constantly looking for ways to improve. Ancient archaeological sites and markets are a must see for inquisitive visitors. Bahrain will continue to diversify its economy, embrace its accession in the financial sector and reduce its dependent relationship with oil.
Publish Date: December 5, 2019 3:04 PM