The Bahrain Chamber of Commerce and Industry commissioned the latest report in its Trade in Focus series, themed “Bahrain and the UK Bilateral Trade Activity.” The report draws comparisons between the economy of the United Kingdom and Bahrain, exhibits trade volume, and highlights import and export opportunities between both countries. It also touches upon the potential of the GCC-UK Free Trade Agreement (FTA) currently under negotiation.
British Businesses in Bahrain
According to the report, there are 569 active British memberships in the Bahrain Chamber, 732 British shareholders, and a total of 1,366 British individuals sitting on the boards of companies in Bahrain.
Bilateral Trade
Given their historic relation of friendship and cooperation, which extends for over 200 years, Bahrain and the United Kingdom also enjoy a vigorous trade relation. In fact, the UK is Bahrain’s 11th top import partner and 28th top export partner.
Despite a slight drop in 2020, the volume of trade between Bahrain and the UK grew steadily between 2017 and 2021, recording a 34% increase. The trade volume amounted to $403 million in 2017, reached $511 million in 2018, and continued to increase in 2019 recording $518 million. The trade volume, however, dropped to $402 million in 2020, but then rebounded in 2021 where it amounted to $538 million.
Trade Potential
According to the report, there are several commodities with an untapped trade potential between Bahrain and the UK. For instance, a key commodity with an export gap for Bahrain is agglomerated iron ores and concentrates, with an estimated gap of $4.8 million, followed by aluminum with an export gap of $1.7 million. While motor vehicles and medicaments top Bahrain’s untapped import potential from the UK, estimated at $55 million and $16 million, respectively.