Chamber of Commerce Country Factsheet Last update: 12.07.2018
Your advisors at the Chamber of Commerce
- Edith Stein+352423939482
- Anne-Catherine Fohl+352423939372
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
Subject descriptor 2014 2015 2016 2017 2018 Gross domestic product, constant prices 4.351 2.863 2.102 1.768 1.615 Gross domestic product, current prices 33.381 31.119 31.823 33.918 35.703 Gross domestic product per capita, current prices 26,321.896 24,057.579 24,119.410 25,202.998 26,009.212 Inflation, average consumer prices 2.651 1.836 3.645 3.016 4.046 Volume of imports of goods and services -0.982 -13.304 0.335 10.608 8.752 Volume of exports of goods and services -1.716 -0.190 2.976 3.303 3.346 Unemployment rate 4.174 n/a n/a n/a n/a Current account balance 1.523 -0.965 -1.499 -1.284 -1.155 Current account balance 4.562 -3.103 -4.709 -3.786 -3.234
Source: IMF Statistics - Bahrain
Luxembourg and the country
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)
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
Tel.: (+971) 24 91 24 46
Economic and Commercial Attaché in charge of Qatar, Kuwait and Bahrain
Economic and Commercial (HUB): Mr Sam SERVAES
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.
- CIA World factbook on Bahrain
- Bahrein sur le site de l'Awex
- Doing business in Bahrain
- Bahrain Chamber of Commerce
The Chamber of Commerce and the country