Despite that the global economic crisis of 2008 significantly affected the GCC region particularly the UAE, Bahrain was the least hit of the gulf economies, but the country still experienced a significant slowdown in growth. In 2009, growth fell to 3.2%, from 8% in 2007. The economy was further impacted by the unrest in 2011 to shrink growth by 1.8%. Otherwise, annual real GDP growth in Bahrain averaged 5% between 2000 and 2012 with oil and gas-related revenues as the main sources of government income and their importance has been further underpinned by historically high oil prices in recent years. 

 

Bahrain GDP in 2013 was $32.8 billion with non-oil sectors contributing ~50% to growth of the economy. The country’s limited oil reserves, which are expected to last only another 10 to 15 years, have led Bahrain to already make significant progress on developing the non-oil sector. The financial sector contributes around 21% of the kingdom’s GDP, while hydrocarbons contributes around 25%, and manufacturing contributes around 13%. The biggest challenge the economy faces continues to be for reducing its dependence on oil and high unemployment, officially around 5% in 2013.