In 1783, the Sunni Al-Khalifa family took power in Bahrain. In order to secure these holdings, it entered into a series of treaties with the UK during the 19th century that made Bahrain a British protectorate. The archipelago attained its independence in 1971. A steady decline in oil production and reserves since 1970 prompted Bahrain to take steps to diversify its economy, in the process developing petroleum processing and refining, aluminum production, and hospitality and retail sectors. It has also endeavored to become a leading regional banking center, especially with respect to Islamic finance. Bahrain's small size, central location among Gulf countries, economic dependence on Saudi Arabia, and proximity to Iran require it to play a delicate balancing act in foreign affairs among its larger neighbors.

Its foreign policy activities usually fall in line with Saudi Arabia and the UAE.The Sunni royal family has long struggled to manage relations with its large Shia-majority population. In early 2011, amid Arab uprisings elsewhere in the region, the Bahraini Government confronted similar pro-democracy and reform protests at home with police and military action, including deploying Gulf Cooperation Council security forces to Bahrain. Political talks throughout 2014 between the government and opposition and loyalist political groups failed to reach an agreement, prompting opposition political societies to boycott legislative and municipal council elections in late 2014. Ongoing dissatisfaction with the political status quo continues to factor into sporadic clashes between demonstrators and security forces.

Source: The CIA World Factbook - Bahrain



Vos conseillers auprès de la Chambre de Commerce

Edith Stein

Contactez-nous: middleeast@cc.lu


Indicateurs clés

Surface
760 km2
Population
1,526,929 (July 2021 est.)
Type de gouvernement
constitutional monarchy
Langues
Arabic (official), English, Farsi, Urdu
PIB
$38.475 billion (2019 est.)
Taux de croissance
-5.8% (2020 est.)
HDI
42
Capitale
Manama

Indicateurs macroéconomiques

IMF Statistics:

Subject descriptor 2021 2022 2023 2024 2025

Gross domestic product, constant prices

Percent change

(Units)

2.591

4.891

2.617

3.567

3.162

Gross domestic product, current prices

Percent change

(Billions)

39.289

44.383

44.674

46.790

48.729

Gross domestic product per capita, current prices

Percent change

(Units)

26,116.466

28,781.890

28,262.187

28,876.454

29,337.302

Inflation, average consumer prices

Percent change

(Units)

-0.611

3.635

0.075

1.400

1.800

Volume of imports of goods and services

Percent change

(Units)

15.185

-8.655

12.998

1.524

3.024

Volume of exports of goods and services

Percent change

(Units)

29.473

-15.811

10.812

3.228

2.078

Unemployment rate

Percent change

(Units)

5.900

7.700

n/a

n/a

n/a

Current account balance

Percent change

(Billions)

2.602

6.839

2.833

3.243

2.582

Current account balance

Percent change

(Units)

6.624

15.408

6.341

6.932

5.299

Estimates
  

Source: IMF Statistics - Bahrain


Le Luxembourg et le pays

Existing conventions and agreements

Non double taxation agreement

In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.

  • Convention from 06.05.2009 (Memorial 2010, A, no. 51, p. 830)
  • Effective as of 01.01.2011 (Memorial 2010, A, no.51, p.830)

Air Services agreement

  • Agreement from 14.1.1994 (Memorial 1995, A, p.1592)
  • Effective as of 09.11.1995 (Memorial 1996, A, p.1257)

Source: Administration des contributions directes


Informations supplémentaires

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

Contact Points in Bahrain

Luxembourg Trade and Investment Office in Abu Dhabi

Mr Loic Bertoli
Appt. 6201, 62nd Floor
Nation Tower Residences, Corniche Road
P.O. Box 44909
Abu Dhabi
Tel.: (+971) 24 91 24 46
E-mail: ltio.abudhabi@mae.etat.lu

Source: Luxembourg Trade&Investment Office (LTIO)

Country risk as defined by Office du Ducroire for Bahrain

Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.

Link: Ducroire Office - Country Risk for Bahrain

Useful links