Bahrain, 1 July, 2024 : Trade between Saudi Arabia and Bahrain has seen steady growth, with Bahrain emerging as Saudi Arabia’s top export destination and fifth-largest import partner.
A recent report by the Bahrain Chamber underscores significant untapped potential for deeper economic collaboration between the two nations.
Despite a 32% increase in overall trade volume since 2019, the report reveals shifts in traded goods. Bahrain's imports of unwrought aluminium from Saudi Arabia surged by 809% last year, reflecting Bahrain’s expanding industrial base. Conversely, Bahraini exports of agglomerated iron ores and concentrates to Saudi Arabia increased by 44% during the same period, indicating a diversified supply chain.
The 'Trade in Focus' report identifies promising sectors for enhanced bilateral trade. Bahrain could notably boost exports of aluminium wire and processed cheese to Saudi Arabia, while Saudi Arabia has potential to increase exports of poultry, cleaning products, and steel rods to Bahrain.
Beyond traditional trade, the report highlights sectors in Saudi Arabia ripe for Bahraini investment. These include food processing, supported by Saudi Arabia's growing food industry focusing on halal products, and a projected annual growth rate of 3%. Additionally, Saudi Arabia's $65 billion investment plan in healthcare infrastructure by 2030 presents substantial opportunities for private sector involvement.
Vision 2030's aim to source half of Saudi Arabia's energy from renewable sources creates avenues for investment in solar, wind, and tidal energy solutions. The environmental services sector in Saudi Arabia, expected to reach $10 billion by 2030, also beckons foreign investments due to population growth and industrial expansion.
The report further highlights Saudi Arabia’s robust manufacturing, pharmaceutical, and advanced chemical industries, all offering lucrative prospects for Bahraini investors.
While the economic ties between Saudi Arabia and Bahrain are strong, exploring new avenues for trade and investment in these growth sectors could unlock substantial mutual benefits.
Source : www.zawya.com
