Browse additional economic indicators and data sets, selected by Global Finance editors, to learn more about Bahrain economic outlook, debt to GDP ratio, international trade performance and population trends. Rankings of Bahrain best banks and safest banks are also available.

This small and affluent island country near the western shores of the Persian Gulf fosters a favorable investment climate and prioritizes foreign investment diversification. While state-owned enterprises remain the primary driver of growth, the Kingdom of Bahrain is seeking to expand private sector contributions, reduce reliance on hydrocarbons and bolster the startup ecosystem. With a robust banking sector and a more diversified economy compared with many of its Gulf neighbors, Bahrain is an established financial hub, a tourist destination and a top global supplier of aluminum products. Vulnerabilities include high debt, exposure to swings in commodity prices, lack of transparency, and heavy dependence on foreign workers.

The chart at left compares Bahrain’s debt-to-GDP ratio to the regional average. It illustrates how the country has struggled to keep its debt burden in line with its national productive capacity.