Echoing the 2014 crisis with low oil prices and surging debt
C4
HIGH RISK
-
Economic risk
-
Business environment risk
-
Political risk
-
Commercial risk
-
Financing risk
-
Economic risk
-
Business environment risk
-
Political risk
-
Commercial risk
-
Financing risk
Updated in January 2025.
Swipe to view more
Form of state | Constitutional monarchy |
Head of government | Hamad bin Isa Al Khalifa |
Next elections | 2026, legislative |
Strengths & Weaknesses

- Bahrain’s economy is diversified within the GCC, with the hydrocarbon sector contributing only one-fifth to GDP
- The country has received financial support from Gulf neighbors, such as Saudi Arabia, the UAE and Kuwait in recent crises
- Bahrain maintains business-friendly regulatory and legal frameworks, supporting economic activities and attracting investments

- Hydrocarbons still account for around 75% of government receipts, making Bahrain vulnerable to fluctuations in oil prices
- Bahrain faced multiple crises in recent years due to a significant drop in hard currency reserves and high fiscal and external breakeven oil prices
- The country’s public debt has increased sharply, reaching 121% of GDP in 2023, with fiscal deficits and external debt posing medium-term sustainability concerns
Economic Overview
Trade Structure by destination/origin
(% of total, 2023)
Trade Structure by product
(% of total, annual 2023)
Collection Complexity
The Allianz Trade Collection Complexity Score provides a simple assessment of how easy it is to collect debt around the world. The 2022 edition covers 49 countries that represent nearly 90% of global GDP and 85% of global trade.
Contacts
Read our latest reports
-
Americas
-
Europe
-
Asia Pacific
-
Middle East
-
Africa