Trade between Saudi Arabia and Bahrain has grown steadily in recent years, with Bahrain emerging as Saudi Arabia’s top export destination and fifth-largest import partner.

However, despite this strong relationship, a new report by the Bahrain Chamber highlights significant untapped potential for further economic collaboration.

While overall trade volume has increased by 32 per cent since 2019, a closer look reveals a shift in the types of goods exchanged. Notably, imports of unwrought aluminium from Saudi Arabia have skyrocketed by 809pc in the past year, reflecting Bahrain’s growing industrial base. Conversely, Bahraini exports of agglomerated iron ores and concentrates to Saudi Arabia have risen by 44pc over the same period, demonstrating a maturing supply chain.

The ‘Trade in Focus’ report identifies several promising sectors with untapped export potential for both countries. For instance, Bahrain could significantly increase exports of aluminium wire and processed cheese to Saudi Arabia, while Saudi Arabia has the potential to export more poultry, cleaning products, and steel rods to Bahrain.

Looking beyond traditional trade, the report also identifies key sectors in Saudi Arabia ripe for investment from Bahrain.

These include, food processing underlining Saudi Arabia’s expanding food industry, with a focus on halal products and a projected growth rate of 3pc annually, which presents a compelling investment opportunity.

The Saudi government’s ambitious plan to invest $65 billion in healthcare infrastructure by 2030 creates significant opportunities for private sector involvement.

Vision 2030’s goal of sourcing half of the country’s energy from renewable sources opens doors for investment in solar, wind, and tidal energy solutions.

Driven by population growth and industrial activity, Saudi Arabia’s environmental services sector is anticipated to reach $10bn by 2030, attracting significant foreign investments.

The report further highlights Saudi Arabia’s robust manufacturing sector, pharmaceutical market, and advanced chemical industry, all presenting lucrative opportunities for Bahraini investors.

While Saudi Arabia and Bahrain boast a strong foundation for economic co-operation, untapped potential remains. By exploring new avenues for trade and investment, particularly in the identified growth sectors, both countries can unlock significant mutual benefits.

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