Bahrain Frontier Markets ETF investment information.
Bahrain has highly developed communication and transport facilities for a frontier market. It is home to a large number of multinational firms, with businesses in the refining industry and Gulf. Petroleum production accounting for almost 70% of Bahrain's export receipts, 11% of GDP, and over 70% of government revenues. This growth and oil revenue has underpinned Bahrain's strong economic growth over the last several years. Bahrain's second major export after oil products is aluminum. In addition, other major segments of Bahrain's economy include financial and construction sectors. The financial industry continues to evolve, and is a major reason for Bahrainís inclusion in Frontier Markets ETF. Bahrain is very aggressively pursuing the privatization and diversification of its economy away from oil, to help reduce the country's dependence on oil. During 2006 Bahrain and the United States implemented a Free Trade Agreement (FTA), which was the first FTA between a Gulf country, much less a frontier market country in the gulf, and the US. Continued strong economic growth depends on Bahrain's ability to acquire new oil, and particularly natural gas supplies, as the linchpin to support its expanding aluminum and petrochemical industries. A challenge is unemployment, especially among the young. Another is the ongoing depletion of water and oil resources, presenting a long term economic problems.
- GDP (purchasing power parity):
$24.61 billion (2007)
- GDP (official exchange rate):
$16.89 billion (2007)
- GDP - real growth rate:
6.6% (2007 est.)