H.M. King Hamad Bin Isa Al Khalifa

PO Box 555
Tel: 1766 6666 

H.H. Shaikh Khalifa Bin Salman Al Khalifa  - Prime Minister

PO Box 1000
Tel: 1720 0000  Fax: 1753 2839 

H.H. Shaikh Salman Bin Hamad Al Khalifa

- Crown Prince and Commander-in-Chief of Bahrain Defence Force

P.O. Box 28788
Tel: 1766 6333  Fax: 1765 0600

Ministry of Cabinet Affairs

P.O. Box 1000,  Manama
Tel: 1722 3366, Fax: 1721 1343 

Ministry of Commerce & Industry

 P.O. Box 5479, Manama
Tel: 1757 4777, Fax: 1753 0455

Ministry of Defence
P.O. Box 245  HQ Bahrain Defence Force

Tel: 1765 3333, Fax: 1766 3923

Ministry of Education
P.O. Box 43, Manama

Tel: 1768 4152, Fax: 1768 4493

Ministry of Electricity & Water
P.O. Box 2, Manama

Tel: 1754 6666, Fax: 1753 3035

Ministry of Finance & National Economy
P.O. Box 333, Manama

Tel: 1757 5000, Fax: 1753 2853

Ministry of Foreign Affairs
P.O. Box 547, Manama

Tel: 1722 7555, Fax: 1721 2603

Ministry of Health

P.O. Box 12, Manama

Tel: 1725 5555, Fax: 1725 2569 

Ministry of Information
P.O. Box 253, Manama

Tel: 1778 1888, Fax: 1768 2777

Ministry of Interior

P.O. Box 13, Manama
Tel: 1757 2222, Fax: 1723 2661

Ministry of The Islamic Affairs
P.O. Box 560, Manama

Tel: 1781 2812, Fax: 1781 2801

Ministry of Justice
PO Box 450, Manama

Tel: 1753 1333, Fax: 1753 1284

Ministry of Labour
P.O. Box 15989, Manama

Tel: 1787 3763, Fax: 1768 6999

Ministry of Municipalities &
Agriculture Affairs
P.O. Box 53, Manama

Tel: 1750 1501, Fax: 1721 1767

The National Oil & Gas Authority
P.O. Box 1435, Manama

Tel: 1731 2644, Fax: 1729 3007

Ministry of Social Development
P.O. Box 32868, Manama

Tel: 1787 3777, Fax: 1768 6839

Ministry of State for Shura Council &
Representative Council Affairs
P.O. Box 1600, Manama

Tel: 1731 7070, Fax: 1722 6629

Ministry of Transportation
P.O. Box 10325, Manama

Tel: 1753 4534, Fax: 1753 4041

Ministry of Works & Housing 
P.O. Box 5, Manama

Tel: 1754 5555, Fax: 1753 4648 

ECONOMIC PERFORMANCE

Striking a positive note

The high oil price and expansionary fiscal policy continue to support Bahrain’s economic outlook. Parliament has passed a two-year budget for 2007 and 2008. The budget will again be expansionary in 2007, with spending slated to increase by 19.5% from the previous year’s budget. Total expenditure has been set at USD 9.9bn for the two years (USD 4.9bn in each year). Education will account for 15% of the total state budget, up from 12%. Meanwhile, the allocation for housing projects has increased by 40% and recurring expenditure is planned to increase by 25%.

Economy Growth
Buoyed by the region wide oil boom, real growth will average 6.4% in 2007-08, reflecting both the strength of oil prices and the expansion of regional demand for Bahrain’s financial services. Despite the increased spending in 2006, the budget surplus will strengthen on the back of higher oil and aluminium revenue. Total revenue is forecast to increase by 35.8%, with oil revenue increasing by around 30%.

The total exports of Bahrain in 2006 stood at BD4.35bn and oil exports contributed BD2.93bn of the total exports during the period. The total exports in 2006 were up by 15.3%, on account of higher oil prices in the year 2006. The total non-oil exports stood at BD0.88bn or around 20.3% of the total exports in 2006. The non-oil exports reported an increase of 4.7% in 2006 and hence the contribution to the total exports has been the lowest since 2002. The total imports increased by 12.6% in 2006 to reach BD3.36bn. The total oil imports during 2006 stood at BD1.84bn, witnessing an increase of 17.6%, while non-oil imports witnessed an increase of 7.0% and stood at BD1.52bn as compared to BD1.42bn recorded in 2005

With the fall in oil price from 2007, the budget surplus will deteriorate going forward, although revenue from the government’s diversification projects (such as the port development in Hidd) will increase. The government forecasts a budget deficit of USD 83.7bn for 2007 and 2008; however, the budget is based on a conservative oil price of USD 40 pb.

Focus on Banking Sector
Bahrain’s banking sector has remained to be a cornerstone in growth of the local economy. After the oil and gas sector, the financial institution sector remains the highest contributor to the country’s GDP. Bahrain has introduced the new central bank in the country, with the objective to monitor and enhance the banking sector regulations. In July 2006, the Bahrain Monetary Agency (BMA) announced details of a comprehensive package of regulatory reforms to modernize and strengthen the licensing framework for banks operating in the Kingdom.

A key feature of the revised framework for banks is the simplification of existing categories of onshore and offshore banking licenses, enabling offshore banks to undertake onshore business in a controlled manner. The existing bank license sub-category of ‘Full Commercial Bank’ is replaced by “Retail Bank’. Meanwhile, the two-existing offshore sub-category, Offshore Banking Unit and Investment Banking License are to be merged and replaced with one unified ‘Wholesale Bank’ license sub-category. The Central Bank of Bahrain (CBB) replaced the Bahrain Monetary Agency (BMA) in September 2006. Bahrain has been the hub for foreign banks to operate from to tap the Middle Eastern Markets.

In a further positive development, Bahrain’s Free Trade Agreement (FTA) with the US should have major benefits for the access of Bahraini exports into the US markets.