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Chamber of Commerce Country Factsheet Last update: 02.08.2017

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Key Indicators

760 km2
1,378,904 (July 2016 est.)
Government type
constitutional monarchy
Arabic (official), English, Farsi, Urdu
$66.37 billion (2016 est.)
Growth rate
2.1% (2016 est.)



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 successful petroleum processing and refining, aluminum production, and hospitality and retail sectors, and also to become a leading regional banking center, especially with respect to Islamic finance. Bahrain's small size and central location among Gulf countries require it to play a delicate balancing act in foreign affairs among its larger neighbors.

The Sunni-led government 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 parliamentary 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.


Macroeconomic indicators

IMF Statistics:

Subject descriptor20142015201620172018
Gross domestic product, constant prices
Percent change
Gross domestic product, current prices
U.S. dollars (Billions)
Gross domestic product per capita, current prices
U.S. dollars (Units)
Inflation, average consumer prices
Percent change
Volume of imports of goods and services
Percent change
Volume of exports of goods and services
Percent change
Unemployment rate
Percent of total labor force
Current account balance
U.S. dollars (Billions)
Current account balance
Percent of GDP
Colored cells are estimates

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
- Act from 31.3.2010 (Memorial 2010, A, no. 51, p. 830 )
- Effective as of 10.11.2010 (Memorial 2010, A, no. 229, of 21.12.2010, p. 3697)

Air Services agreement

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

Source: Administration des contributions directes


Further information

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 point in Bahrain

Economic and Commercial Attaché (AWEX):                                                              


PO Box 3280 Safat
13033 KUWAIT

Tel: +965 25 37 60 53
Fax: +965 25 37 60 54
E-mail: kuwait(at)



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