The report examines the economic landscape of Bahrain and provides information on major monetary indicators, foreign trade and government finance. The economy expanded in real terms in 2024, driven by private consumption and investments. However, a global economic slowdown, increasing geopolitical tensions and economic fragmentation as well as tight financial conditions pose risks to the country’s economic outlook.

The number of households is set to increase moderately, while the average household size will shrink in Bahrain over 2024-2029. Couples with children will remain the dominant household type but the fastest household expenditure growth is forecast to be recorded by single person households. In addition, the share of households living in urban areas is projected to expand to 91.2% by 2029.

Insight into income, wealth and expenditure of consumers and households is vital in helping businesses make strategic decisions with regards to which country (or even which region within a country) to enter, which consumer segment to target, which products or services to market, and at which price point. Other factors such as the size and expansion of the middle class and income inequality are also important in helping companies gauge the potential of a country market.

This report assesses the business environment in Bahrain, focusing on the regulatory environment, stability of the financial system, FDI intake, labour market flexibility and skillset, trade openness, mobility infrastructure, ICT adoption and innovative capabilities. Companies can evaluate these factors to understand the strengths and weaknesses of a country’s business environment for better strategic investment decisions.

The population of Bahrain is predicted to increase by 19.8%, due to changes in net migration and natural change, standing at a total of 1.9 million citizens by 2040. Middle Youth (aged 30-44) will represent the largest portion of the population by 2040. Generational cohorts will continue to influence consumer expenditure based on their specific purchasing habits and unique demands. Major cities across Bahrain will continue to develop and expand, while Manama will remain the largest city by 2040.

Economic freedom has improved markedly and Bahrain could resume relations with Iran, but government finances remain stressed. Economic diversification continues and Bahrain is attracting considerable foreign investment, but price growth is subdued. Strong population expansion and rising incomes will support the consumer market, but the gender gap is huge and religious bias creates societal tensions. Development of new technologies continues apace, but internet freedoms are restricted.

This report analyses global production, consumption and prices of aluminium. While leading aluminium production giant, China, is struggling with looming energy crisis and disruptions in supply of raw materials, global production of aluminium is set to maintain growth, thanks to expanding Indian, Canadian and Gulf production outputs. Aluminium prices are projected to cool down towards the end of 2022 and stabilise in 2023 as countries find ways to replace Russian aluminium production.