What will the economic development in Bahrein be like when all the oil reserves will be gone in about ten years from now?

Is Bahrein's economy strong enough to finance additional major projects like the ones that are going on right now or will it just depend on tourism?

How good/bad is the situation really?

I think the worse problem that bahrain faces, or at least the hardest obsticle to development, is the growing population size. For a country the size of bahrain, 500,000+ is a large number. Within 10 years, lets say bahraini citizens will hit the 1 million mark. All these bahrains will require schools, hospitals, homes, bigger streets to be able to drive thier cars to work, work that is pays a decent amount and many more. The pie is getting smaller and their are more mouths to feed. Bahrain needs to get another pie, allow bahraini citizens working in the uae to be treated/payed like uae citizens or start building the barhain/qatar bridge where there would be better job opportunities, these are just two examples.

Im guessing that a bahraini family, mom+dad+3 kids, would probably need a net income of around 1,000 bd/month, maybe a bit less, to be able to live comfortably. That means less of the 120 - 200 bd jobs which hardly anyone can live on. Tourism will never be a big source of income for bahrain, it may account 10 20 or even 30% of the gdp but it will never take on oil income.

I suggest bahrain should start taxing, say around 5% tax on monthly income of those who make above a certain wage. This is probably the only solution i can think off.

Qatar4Ever, do you think Bahrain now depends on the oil?

Oil makes 70% of Bahraini Government revenues man..

The main idea is to reduce expenditure, to meet reduced revenues.. My openion

But still, even if u were going to do that, its far from enough, i mean 70%! They need to find alternative sources for the government's budget....Thats my main concern...I think the economy will do just fine, it'll take a hit at first, but will bounce back...Most of these big projects don't involve the government, and have nothing to do with oil and oil revenues as far as i know...A lot of it is foreign investment too...Soo its the government budget that i'm worried about...If the government can't find alternate sources for its income, how will they maintain the infrastructure, roads etc...The government's lack of funds is what might effect our economy adversely, and at a time when the economy needs all the help and support it can get...The population size is a bit of a concern, but looking at Singapore, i'm not soo worried as long as the reforms continue and more land becomes available...Our population growth rate is the lowest in the gulf...

I like Qatar4Ever's suggestion, the income tax..It's seems very practical practical....

reduce the budget by 50% and boost your income by 20%

How does thins sound, do you think our current expenditure are necessary?

Think of it and let me know!

ohh and yeah, we need to send people out for work,

However we maintain our expert ppl in home and not sacrifice them for nighbouring countries who try hard to pull them out,

What do u mean boost income by 20% ?

And how can the government survive with a 50% reduction or cut in its budget!! I'm not sure where all the budget goes, how its spent, but 50%!! The expenditure and budget usually somewhat reflect the economy, and as the economy grows, so must the budget grow..and with a bigger population and a need for more homes, towns, schools, hospitals, i'm not sure how 50% is possible...But i guess they could shave off quite a bit...perhaps privatize schools like Qatar plans to do, but subsidize...Same with hospitals....Set aside some money for the very needy for schoools and hospitals, but charge a more or less nominal fee for everybody...That's a start...

Bahrain and Qatar should eventually join the UAE.

Bahrain and Qatar should eventually join the UAE.
I don't think qatar would want to spread it's wealth.

I don't think qatar would want to spread it's wealth.

They should be forced.

I don't believe in the concept of little countries existing on their own.

Bahrain and Qatar shouldnt join the UAE. What does the UAE have to offer to Qatar that Qatar can't aquire for itself ?

Skyline-BRN - its not a matter of wealth at all, your very mistaken. Qatar back in the early 70's, when oil production was way less than what bahrain produces today, chose to be independent from the UAE. Even though all its govt expenditure would come from AD. It didnt had anythign to do with wealth sharing back then just as it wouldnt have to do anything with it today.

As for the concept of Qatar not wanting to share its wealth. Any Gulf citizen can come to qatar and find a decent paying job within one week, that is if this citizen home country allows him to do so. There are even special gov't offices with the sole purpose of recuriting ppl from the gulf into gov't jobs. Qatar has even offered to provide jobs for 10,000 bahrainis in its oil and gas sector, and am sure there is no need to go there. You surely can't expect for Shk. Hamad to go around the gulf handing out checks just to "spreah it's wealth."

As for blackforest comment, who would force Qatar and Bahrain to join the UAE ?

These countries aren't little kids that you try to force into a car, they're independent countries which have done very well for themselves without the need to join the UAE. Bahrain has produced the best scholors in the gulf and have the highest work ethic of us all. Plus they're probably the most educated. Qatar has done good for itself lately boosting everything from education to road works.

But look at the other little countries that joined the UAE ! ajman, fujariah, um il qayem, ras al khaymah i dont see them having any modern infrastructure or even decent schools and roads. They're probably more the same as they were back in the 70's if not 50's rather than any modern. How did the UAE do them any good ?

As for the concept of little countries, Bahrain, Qatar, and the UAE are all little countries if you compare them to real countries. so maybe using your logic we should all join Saudi Arabia since we're all little.

As for bahrain's income. I strongly believe an income tax and some sort of coperate tax is the best way for bahrain to maintain revenues. And a gov't expenditure and speading has everything to do with its economic growth, we'd be mistaken if we think they're independent.

Qatari,

I really loved your comments, thanks alot! I trust it all..

:)

You don't appreciate my humour.

Bahrain and Qatar shouldnt join the UAE. What does the UAE have to offer to Qatar that Qatar can't aquire for itself ?

Skyline-BRN - its not a matter of wealth at all, your very mistaken. Qatar back in the early 70's, when oil production was way less than what bahrain produces today, chose to be independent from the UAE. Even though all its govt expenditure would come from AD. It didnt had anythign to do with wealth sharing back then just as it wouldnt have to do anything with it today.

As for the concept of Qatar not wanting to share its wealth. Any Gulf citizen can come to qatar and find a decent paying job within one week, that is if this citizen home country allows him to do so. There are even special gov't offices with the sole purpose of recuriting ppl from the gulf into gov't jobs. Qatar has even offered to provide jobs for 10,000 bahrainis in its oil and gas sector, and am sure there is no need to go there. You surely can't expect for Shk. Hamad to go around the gulf handing out checks just to "spreah it's wealth."

As for blackforest comment, who would force Qatar and Bahrain to join the UAE ?

These countries aren't little kids that you try to force into a car, they're independent countries which have done very well for themselves without the need to join the UAE. Bahrain has produced the best scholors in the gulf and have the highest work ethic of us all. Plus they're probably the most educated. Qatar has done good for itself lately boosting everything from education to road works.

But look at the other little countries that joined the UAE ! ajman, fujariah, um il qayem, ras al khaymah i dont see them having any modern infrastructure or even decent schools and roads. They're probably more the same as they were back in the 70's if not 50's rather than any modern. How did the UAE do them any good ?

As for the concept of little countries, Bahrain, Qatar, and the UAE are all little countries if you compare them to real countries. so maybe using your logic we should all join Saudi Arabia since we're all little.

As for bahrain's income. I strongly believe an income tax and some sort of coperate tax is the best way for bahrain to maintain revenues. And a gov't expenditure and speading has everything to do with its economic growth, we'd be mistaken if we think they're independent.


True besides a few extra billion $s from AD only.I don't have much time to comment due to study reasons but given that we'll run out of oil, that's why the economic/social/labour reforms were launched for the next decade. Bahrain wants to be a forerunner always and given that things slipped a bit, they want it better than ever. We are the most diversified economy in the gulf and given that we're facin a problem, it's better to tackle it now. The economy will receive a hit in the beginning but then it should grow more than ever.

I'll elaborate more later in my free time, I have many things to say but no time.

I look forward to more of your comments and elaboration B-Spirit =P

As for Blackforest's comments, i think i might not mind IF Bahrain is made the capital of the new UAE, and maybe reconsider the whole UAE name while you're at it..any suggestions!? lol....Plus its better to share the power, it might help with corruption...having more than one ruling family...

And with all the new planned bidges and causeways, we'll really feel more like one country, as we'll all be connected...Bahrain to Qatar, and Qatar to AbuDhabi...

Hey.. come on. Not everyone has to use :jk: to joke around.

Anyway, the Emir of Qatar bought both the Qatar and Bahrain islands in the Dubai World Islands project.. so I guess that says something about Qatar's opinion.. :D

Well the UAE already has more than one ruling family. Each emirate has its own ruling family.

I think that was what Bahrain said in the past too when it was asked to join the UAE.. it said it wanted to be the capital. I wonder why Oman was never asked.. they seem to be isolated with those mountains...

With the change of Bahrain becoming a kingdom rather than a sheikhdom, I also think they have absolutely no intention of joining powers.

I'm confused by a comment made by someone here saying Bahrain has the most diversified economy.. but didn't Moody say that 70% comes from oil?

Bahrain used to be a Persian colony once upon a time.. I have some relatives there anyway, and once when my half-breed Bahraini cousins went back there, they used GPS in the car for navigation, and they found that they were in the middle of the sea.. hehe.. I guess Bahrain is pretty active in land reclamation. Eventually, they might stick to Qatar.

Anyway, I have no idea where Bahrain is heading in 10 years.. but I think they'll be ok.

Yes, we most definately have the most diversified economy in the gulf....Its the government's revenues that come 70% from oil....Also we don't export much, relatively speaking...One of our main industries that contributes approximately 20% and is contributing more and more year after year is our financial services sector...We're more a services oriented economy i think...Soo thats why our exports are not very diversified, and there too does oil account for about 60%, but inshala that figure will decrease (the oil contributiion as a percentage), especially with ALBA's recent expansion n all...

And to be realistic, yeah, i don't think Bahrain will ever join any other country...Unless this becomes a trend, and other countries start joining each other in the not soo near future, maybe....I think our King Hamad likes being King, and he isn't willing to give up his Kingship anytime soon =P

And yeah, i remember reading a long time ago in our Bahraini newspapers that the Bahrain island in the WORLD project was purchased, but anonymously i heard...I assumed probably by our filthy rich prime minister, lol

I serioulsy dount qatar's amir bought into the world's island. Plz, i mean come on !! The last place gulf amir and shks wouldnt ever give up europe's meditranian private island for "the world." And if im not mistaken the newspaper article had said that bahrain was purchased by a bahraini.