High growth
Fintech & financial services
The Central Bank of Bahrain's sandbox and open-banking rules make it the region's fintech testbed.
Country Profile — Arab-America International Expo 2027
Profile content in preparationKingdom of Bahrain
The Gulf's easiest place to start.
The region's original financial center and the only Gulf state with a free trade agreement with the United States — 100% foreign ownership, no personal income tax.
Country at a glance
- GDP
- ≈ $47 billion (nominal)
- Population
- ≈ 1.6 million
- Currency
- Bahraini Dinar (BHD), pegged to USD
- Capital
- Manama
- Economic growth
- ≈ 2.5% real GDP growth
Statistics year: 2024 (latest full-year data)
Overview
A small island with the region's most open rulebook
Bahrain was the Gulf's first financial center and remains its most liberal business environment: full foreign ownership in most sectors, no corporate income tax for most activities and the fastest company formation in the region.
The US–Bahrain Free Trade Agreement — the first with a Gulf state — gives duty-free access for qualifying American goods and a legal framework American companies already understand.
A causeway to Saudi Arabia makes Bahrain a low-cost base for serving the largest market in the Gulf.
- Capital
- Manama
- Population
- ~1.6 million
- Language
- Arabic (English is the business language)
- Currency
- Bahraini Dinar (BHD), pegged to USD
- Trade agreement
- US–Bahrain FTA (in force since 2006)
- Time zone
- GMT +3
Economy
Diversified, services-led and low-cost
Non-oil sectors — finance, manufacturing, logistics and tourism — generate the large majority of Bahrain's output.
$0B+
GDP (nominal)
Compact, services-led economy
0%
Non-oil share of GDP
Most diversified in the Gulf
0
Licensed financial institutions
Banks, insurers and fintechs
0%
Operating cost advantage
Below the regional average
Financial servicesRegional banking and insurance hub
Manufacturing & aluminiumAlba, one of the world's largest smelters
Logistics & portsKhalifa Bin Salman Port
ICT & fintechRegulatory sandbox and cloud-first policy
Tourism & eventsFormula 1 and Gulf weekend market
Oil & gasModest but stable output
Priority sectors
Where Bahraini buyers and partners are looking
Sectors where American companies find the fastest route into the Gulf through Bahrain.
Digital
Cloud & data centers
A cloud-first government policy and regional hyperscale investment drive enterprise IT demand.
FTA advantage
Advanced manufacturing
Aluminium downstream, food processing and light industry with duty-free access to the US under the FTA.
Gateway
Logistics & distribution
Bonded warehousing and the King Fahd Causeway make Bahrain a distribution base for the Eastern Province of Saudi Arabia.
Services
Healthcare & education
Private hospital and university expansion importing systems, equipment and curricula.
Consumer
Tourism & hospitality
A weekend leisure market of millions plus international events including Formula 1.
Economic Vision 2030
Sustainability, fairness and competitiveness
Bahrain's long-term plan focuses on private-sector growth, high-value jobs and a business environment that outcompetes its larger neighbors.
- 2006
US FTA in force
The first free trade agreement between the United States and a Gulf state.
- 2008
Vision 2030 launched
A national economic strategy centered on the private sector.
- 2021
Recovery plan
A $30B project pipeline announced across five strategic sectors.
- 2030
Target state
A diversified, high-productivity economy with global financial relevance.
Major development projects
Projects opening supplier opportunities
A concentrated pipeline across infrastructure, industry and tourism.
King Hamad Causeway
A new road and rail link to Saudi Arabia designed to multiply cross-border freight and passenger capacity.
Bahrain Metro
A planned multi-line urban rail network for Manama and its suburbs.
Alba Line 7 downstream
Value-added aluminium products expanding Bahrain's manufacturing export base.
Fasht Al Jarim tourism zone
A large coastal leisure and residential development north of Manama.
US – Bahrain trade
The only Gulf FTA with the United States
Qualifying American goods enter Bahrain duty-free, and qualifying Bahraini goods enter the US duty-free — a structural advantage no other Gulf state offers.
Top exports to the world
Aluminium & productsLargest non-oil export
Refined petroleum
Iron & steel products
Top imports
Machinery & equipment
Vehicles & parts
Food & agriculture
Chemicals & pharmaceuticals
Leading products to the United States
- Aluminium products
- Textiles and apparel
- Fertilizers
- Machinery components
Leading products from the United States
- Vehicles
- Aircraft parts
- Machinery
- Processed foods
- Medical and lab equipment
- Duty-free trade in both directions under the US–Bahrain FTA
- 100% foreign ownership in most sectors with no local partner requirement
- A practical base for serving Saudi Arabia's Eastern Province
Bilateral goods trade — 2024
Trade with the United States
Verified full-year bilateral merchandise trade between Bahrain and the United States, reported from Bahrain's perspective.
Total U.S. goods trade
$2.4B
2024
Exports to the United States
$1.4B
2024
Imports from the United States
$1.0B
2024
Trade balance
$400.0M
Surplus for Bahrain
2024
Exports vs. imports — 2024
Bahrain exports to the United States$1.4B
Bahrain imports from the United States$1.0B
Exports to the US Imports from the US
Bahrain holds a modest goods surplus with the United States, supported by the US–Bahrain Free Trade Agreement, which gives Bahraini aluminium, textiles and manufactured products duty-free access to the American market.
Scope of these figures
These figures represent merchandise trade only and do not include services.
Data source
- U.S. Census Bureau, Foreign Trade Division — country trade data (full year 2024)
- Office of the United States Trade Representative — country trade fact sheets
- International Trade Administration, U.S. Department of Commerce
Statistical year: 2024
Leading exports to the United States
- Aluminium and aluminium articles
- Refined petroleum products
- Apparel and textiles
- Iron and steel products
- Chemicals
Leading imports from the United States
- Aircraft and parts
- Vehicles
- Machinery and mechanical appliances
- Electrical equipment
- Optical and medical instruments
- Agricultural products
Culture & tourism
Ancient Dilmun, modern Gulf
Five thousand years of trading history on a compact, walkable island.
Northern coast
Bahrain Fort (Qal'at al-Bahrain)
A UNESCO World Heritage site marking the ancient Dilmun capital.
Manama
Manama Souq
The historic market district beside the modern financial harbour.
Sakhir
Bahrain International Circuit
Home of the Formula 1 Gulf Air Bahrain Grand Prix.
Why invest
Why American companies choose Bahrain
The lowest-friction entry point into the Gulf for a US business.
01
Free trade agreement
Tariff-free access in both directions plus investment protections American lawyers already know.
02
Full ownership
No local sponsor required in most sectors, and no restrictions on repatriating profits.
03
Cost base
Office, labour and utility costs materially below Dubai, Doha and Riyadh.
04
Regulatory speed
Company formation in days, with a regulator known for engaging directly with new entrants.
At the Expo
Bahrain at AAIX 2027
The Bahrain pavilion is where American companies learn how to use the FTA as a Gulf entry strategy.
- FTA and customs briefings for US exporters
- Company formation and licensing clinics
- Fintech and financial-services partnership meetings
- Manufacturing and logistics site introductions
World heritage
UNESCO World Heritage Sites in Bahrain
Sites inscribed on the UNESCO World Heritage List, a core part of the country's cultural and tourism offer.
Qal'at al-Bahrain — Ancient Harbour and Capital of Dilmun
A layered archaeological mound and fort spanning 4,000 years.
Pearling, Testimony of an Island Economy
Oyster beds, seashore and buildings in Muharraq documenting the pearl trade.
Dilmun Burial Mounds
Tens of thousands of Bronze Age burial mounds unique in scale.
Business opportunities
Opportunities for Arab and American companies
How companies from different markets can engage with Bahrain through the Expo.
For American companies
Incorporate wholly-owned and trade duty-free under the FTA, using Bahrain as a Saudi Eastern Province base.
For Arab companies
Financial services, fintech licensing and light manufacturing with low operating costs.
For international investors
Financial services, data centres and industrial projects with fast regulatory approval.
Represent Bahrain at Arab-America International Expo 2027
Present your country's economy, industries, products, investment opportunities, tourism destinations and culture to the American and North American markets.
Reserve space in the Bahraini pavilion, or register as an American supplier to use the FTA as your Gulf entry route.
Sources & data
- Bahrain Economic Development Board
- Central Bank of Bahrain
- Office of the US Trade Representative
- World Bank & IMF country data
- U.S. Census Bureau / USTR trade statistics
- UN Comtrade
Last updated: August 2026