The real estate sector in Bahrain has seen a significant increase in Saudi ownership, with a 37% surge between 2019 and 2024. This surge highlights a growing interest among Saudi investors in property investments within the Kingdom. However, this enthusiasm has not been mirrored in other sectors, with joint stock companies and higher education institutions experiencing declines of 25% and 28%, respectively. These findings were revealed in a recent report coinciding with the launch of a representative office for the Saudi-Bahraini Investment Company.
The report also emphasized the strong trade relationship between Saudi Arabia and Bahrain, with Saudi Arabia being Bahrain’s fifth largest import partner and top export partner. In 2023, the trade volume between the two nations reached $3.9 billion. Despite a slight 2% dip in trade volume between 2019 and 2020, the economic exchange between Saudi Arabia and Bahrain rebounded strongly, increasing by 19% from $2.9 billion in 2020 to $3.4 billion in 2021.
Over the past five years, Saudi imports to Bahrain have grown by 5%, reaching $976 million in 2023 from $927 million in 2019. Bahraini exports to Saudi Arabia have also seen a significant increase, soaring by 44%. In 2023, unwrought aluminum (not alloyed) was the top import from Saudi Arabia, valued at $77 million, marking an 809% increase from the previous year. Other significant imports included aluminum oxide and refined sugar crystals, which also experienced substantial growth.
On the export front, Bahrain’s major commodity to Saudi Arabia was agglomerated iron ores and concentrates, valued at $538 million and accounting for 18% of total exports in 2023. Other key exports included unwrought aluminum alloys and semi-finished iron and steel, which also saw notable increases. There remains significant untapped export potential between Bahrain and Saudi Arabia, with non-alloyed aluminum wire topping the list with an export gap of $92 million, followed by bridges and bridge-sections with a gap of $88 million. Processed cheese also shows promise, with an untapped potential of $55 million.
As both nations continue to strengthen their economic ties, these figures highlight the dynamic and evolving trade landscape, offering opportunities for further growth and collaboration. The increase in Saudi ownership in Bahrain’s real estate sector reflects a growing interest in property investments within the Kingdom. While other sectors may not be experiencing the same level of enthusiasm, the trade relationship between Saudi Arabia and Bahrain is robust and continues to grow, providing opportunities for economic exchange and collaboration. With untapped export potential between the two nations, there is room for further expansion and development in the trade landscape, bringing mutual benefits to both Bahrain and Saudi Arabia.
