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Bahrain-Agriculture and Fishing Bahrain -- The Economy





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Bahrain Index

Despite the scant rainfall and poor soil, agriculture historically was an important sector of the economy. Before the development of the oil industry, date palm cultivation dominated Bahrain's agriculture, producing sufficient dates for both domestic consumption and export. At least twenty-three varieties of dates are grown, and the leaves, branches, buds, and flowers of the date palm also are used extensively. From the 1950s through the 1970s, changing food consumption habits, as well as the increasing salinity of the aquifers that served as irrigation sources, led to a gradual decline in date cultivation. By the 1980s, a significant number of palm groves had been replaced by new kinds of agricultural activities, including vegetable gardens, nurseries for trees and flowers, poultry production, and dairy farms.

By 1993 Bahrain's cultivated area had been reduced from 6,000 hectares before independence to 1,500 hectares. The cultivated land consists of about 10,000 plots ranging in size from a few square meters to four hectares. These plots are distributed among approximately 800 owners. A minority of large owners, including individuals and institutions, are absentee landlords who control about 60 percent of all cultivable land. The ruling Al Khalifa own the greatest number of plots, including the largest and most productive ones, although public information pertaining to the distribution of ownership among family members is not available. Absentee owners rent their plots to farmers, generally on the basis of three-year contracts. There are approximately 2,400 farmers, 70 percent of whom do not own the land they cultivate.

The small size of most plots and the maldistribution of ownership has tended to discourage private investment in agriculture. In addition, the number of skilled farmworkers progressively declined after 1975 because an increasing number of villagers obtained high-paying, nonagricultural jobs. Despite these impediments, official government policy since 1980 has aimed at expanding domestic production of crops through such programs as free distribution of seeds, technical assistance in adopting new and more efficient irrigation technologies, and lowinterest credit. Although these programs have contributed to significant increases in the production of eggs, milk, and vegetables, the circumscribed extent of Bahrain's cultivable area limits the island's potential productive capacity. Consequently, agricultural imports remain a permanent aspect of the country's international trade. In 1993 the main food imports included fruits, vegetables, meat, live animals (for slaughter), cereals, and dairy products.

The waters surrounding Bahrain traditionally have been rich in more than 200 varieties of fish, many of which constitute a staple of the diet. Before the development of the oil industry, most males engaged in some form of fishing. In addition, the pearl industry constituted one of the most important bases of the island's wealth, and more than 2,000 pearling boats operated during the late 1920s. After 1935 both fishing and pearling as occupations steadily declined. Although the prospect of steady wages attracted many pearl divers to oil-related jobs, pearling was even more adversely affected by the development in Japan of the cultured pearl. By 1953 only twelve pearling boats remained, and these all disappeared within a decade. Fishing declined more gradually, but by the early 1970s fewer than 1,000 fishermen continued to ply their trade. Fewer fishermen meant less fish available in the market despite rising consumer demand, and this situation led to the annual importation of tons of fish to supplement the local catch. In 1981 the government launched a program to revitalize the fishing industry by introducing trawlers, motorizing the traditional dhows, expanding jetties, constructing cold storage facilities, and offering training courses on the use and maintenance of modern fishing equipment. These initiatives contributed to an increase in the total fish catch, which according to estimates of the Food and Agriculture Organization of the United Nations, was 9,200 tons in 1989.

Pollution in the Persian Gulf became a problem in the 1970s. Shrimp in the northern gulf seemed particularly sensitive to marine pollution, and by 1979 they had almost disappeared from waters near Bahrain. Pollution was seriously aggravated in 1983 and again in 1991 by major oil slicks that emanated from wardamaged oil facilities and covered several thousand square kilometers of water in the northern Persian Gulf. The slicks were detrimental to the unique marine life in the vicinity of Bahrain, including coral reefs, sea turtles, dugongs (herbivorous sea mammals similar to manatees), oyster beds and shrimp beds, numerous fish species, and water fowl. The oil slicks, especially those of 1991, adversely affected the fishing industry, but as of early 1993, marine biologists remained uncertain about the longterm ecological impact of the pollution.

Data as of January 1993

Agriculture and Fishing

Despite the scant rainfall and poor soil, agriculture historically was an important sector of the economy. Before the development of the oil industry, date palm cultivation dominated Bahrain's agriculture, producing sufficient dates for both domestic consumption and export. At least twenty-three varieties of dates are grown, and the leaves, branches, buds, and flowers of the date palm also are used extensively. From the 1950s through the 1970s, changing food consumption habits, as well as the increasing salinity of the aquifers that served as irrigation sources, led to a gradual decline in date cultivation. By the 1980s, a significant number of palm groves had been replaced by new kinds of agricultural activities, including vegetable gardens, nurseries for trees and flowers, poultry production, and dairy farms.

By 1993 Bahrain's cultivated area had been reduced from 6,000 hectares before independence to 1,500 hectares. The cultivated land consists of about 10,000 plots ranging in size from a few square meters to four hectares. These plots are distributed among approximately 800 owners. A minority of large owners, including individuals and institutions, are absentee landlords who control about 60 percent of all cultivable land. The ruling Al Khalifa own the greatest number of plots, including the largest and most productive ones, although public information pertaining to the distribution of ownership among family members is not available. Absentee owners rent their plots to farmers, generally on the basis of three-year contracts. There are approximately 2,400 farmers, 70 percent of whom do not own the land they cultivate.

The small size of most plots and the maldistribution of ownership has tended to discourage private investment in agriculture. In addition, the number of skilled farmworkers progressively declined after 1975 because an increasing number of villagers obtained high-paying, nonagricultural jobs. Despite these impediments, official government policy since 1980 has aimed at expanding domestic production of crops through such programs as free distribution of seeds, technical assistance in adopting new and more efficient irrigation technologies, and lowinterest credit. Although these programs have contributed to significant increases in the production of eggs, milk, and vegetables, the circumscribed extent of Bahrain's cultivable area limits the island's potential productive capacity. Consequently, agricultural imports remain a permanent aspect of the country's international trade. In 1993 the main food imports included fruits, vegetables, meat, live animals (for slaughter), cereals, and dairy products.

The waters surrounding Bahrain traditionally have been rich in more than 200 varieties of fish, many of which constitute a staple of the diet. Before the development of the oil industry, most males engaged in some form of fishing. In addition, the pearl industry constituted one of the most important bases of the island's wealth, and more than 2,000 pearling boats operated during the late 1920s. After 1935 both fishing and pearling as occupations steadily declined. Although the prospect of steady wages attracted many pearl divers to oil-related jobs, pearling was even more adversely affected by the development in Japan of the cultured pearl. By 1953 only twelve pearling boats remained, and these all disappeared within a decade. Fishing declined more gradually, but by the early 1970s fewer than 1,000 fishermen continued to ply their trade. Fewer fishermen meant less fish available in the market despite rising consumer demand, and this situation led to the annual importation of tons of fish to supplement the local catch. In 1981 the government launched a program to revitalize the fishing industry by introducing trawlers, motorizing the traditional dhows, expanding jetties, constructing cold storage facilities, and offering training courses on the use and maintenance of modern fishing equipment. These initiatives contributed to an increase in the total fish catch, which according to estimates of the Food and Agriculture Organization of the United Nations, was 9,200 tons in 1989.

Pollution in the Persian Gulf became a problem in the 1970s. Shrimp in the northern gulf seemed particularly sensitive to marine pollution, and by 1979 they had almost disappeared from waters near Bahrain. Pollution was seriously aggravated in 1983 and again in 1991 by major oil slicks that emanated from wardamaged oil facilities and covered several thousand square kilometers of water in the northern Persian Gulf. The slicks were detrimental to the unique marine life in the vicinity of Bahrain, including coral reefs, sea turtles, dugongs (herbivorous sea mammals similar to manatees), oyster beds and shrimp beds, numerous fish species, and water fowl. The oil slicks, especially those of 1991, adversely affected the fishing industry, but as of early 1993, marine biologists remained uncertain about the longterm ecological impact of the pollution.

Data as of January 1993



BackgroundIn 1783, the al-Khalifa family captured Bahrain from the Persians. In order to secure these holdings, it entered into a series of treaties with the UK during the 19th century that made Bahrain a British protectorate. The archipelago attained its independence in 1971. Bahrain's small size and central location among Persian Gulf countries require it to play a delicate balancing act in foreign affairs among its larger neighbors. Facing declining oil reserves, Bahrain has turned to petroleum processing and refining and has transformed itself into an international banking center. King HAMAD bin Isa al-Khalifa, after coming to power in 1999, pushed economic and political reforms to improve relations with the Shia community. Shia political societies participated in 2006 parliamentary and municipal elections. Al Wifaq, the largest Shia political society, won the largest number of seats in the elected chamber of the legislature. However, Shia discontent has resurfaced in recent years with street demonstrations and occasional low-level violence.
LocationMiddle East, archipelago in the Persian Gulf, east of Saudi Arabia
Area(sq km)total: 741 sq km
land: 741 sq km
water: 0 sq km
Geographic coordinates26 00 N, 50 33 E
Land boundaries(km)0 km

Coastline(km)161 km

Climatearid; mild, pleasant winters; very hot, humid summers

Elevation extremes(m)lowest point: Persian Gulf 0 m
highest point: Jabal ad Dukhan 122 m
Natural resourcesoil, associated and nonassociated natural gas, fish, pearls
Land use(%)arable land: 2.82%
permanent crops: 5.63%
other: 91.55% (2005)

Irrigated land(sq km)40 sq km (2003)
Total renewable water resources(cu km)0.1 cu km (1997)
Freshwater withdrawal (domestic/industrial/agricultural)total: 0.3 cu km/yr (40%/3%/57%)
per capita: 411 cu m/yr (2000)
Natural hazardsperiodic droughts; dust storms
Environment - current issuesdesertification resulting from the degradation of limited arable land, periods of drought, and dust storms; coastal degradation (damage to coastlines, coral reefs, and sea vegetation) resulting from oil spills and other discharges from large tankers, oil refineries, and distribution stations; lack of freshwater resources (groundwater and seawater are the only sources for all water needs)
Environment - international agreementsparty to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection, Wetlands
signed, but not ratified: none of the selected agreements
Geography - noteclose to primary Middle Eastern petroleum sources; strategic location in Persian Gulf, through which much of the Western world's petroleum must transit to reach open ocean
Population727,785
note: includes 235,108 non-nationals (July 2009 est.)
Age structure(%)0-14 years: 25.9% (male 95,224/female 93,241)
15-64 years: 70.2% (male 292,941/female 217,729)
65 years and over: 3.9% (male 15,106/female 13,544) (2009 est.)
Median age(years)total: 30.1 years
male: 33.2 years
female: 26.7 years (2009 est.)
Population growth rate(%)1.285% (2009 est.)
Birth rate(births/1,000 population)17.02 births/1,000 population (2009 est.)
Death rate(deaths/1,000 population)4.37 deaths/1,000 population (July 2009 est.)

Net migration rate(migrant(s)/1,000 population)0.2 migrant(s)/1,000 population (2009 est.)
Urbanization(%)urban population: 89% of total population (2008)
rate of urbanization: 1.8% annual rate of change (2005-10 est.)
Sex ratio(male(s)/female)at birth: 1.03 male(s)/female
under 15 years: 1.02 male(s)/female
15-64 years: 1.34 male(s)/female
65 years and over: 1.12 male(s)/female
total population: 1.24 male(s)/female (2009 est.)
Infant mortality rate(deaths/1,000 live births)total: 15.25 deaths/1,000 live births
male: 17.81 deaths/1,000 live births
female: 12.61 deaths/1,000 live births (2009 est.)

Life expectancy at birth(years)total population: 75.16 years
male: 72.64 years
female: 77.76 years (2009 est.)

Total fertility rate(children born/woman)2.5 children born/woman (2009 est.)
Nationalitynoun: Bahraini(s)
adjective: Bahraini
Ethnic groups(%)Bahraini 62.4%, non-Bahraini 37.6% (2001 census)

Religions(%)Muslim (Shia and Sunni) 81.2%, Christian 9%, other 9.8% (2001 census)
Languages(%)Arabic, English, Farsi, Urdu

Country nameconventional long form: Kingdom of Bahrain
conventional short form: Bahrain
local long form: Mamlakat al Bahrayn
local short form: Al Bahrayn
former: Dilmun
Government typeconstitutional monarchy
Capitalname: Manama
geographic coordinates: 26 14 N, 50 34 E
time difference: UTC+3 (8 hours ahead of Washington, DC during Standard Time)
Administrative divisions5 governorates; Asamah, Janubiyah, Muharraq, Shamaliyah, Wasat
note: each governorate administered by an appointed governor
Constitutionadopted 14 February 2002

Legal systembased on Islamic law and English common law; has not accepted compulsory ICJ jurisdiction

Suffrage20 years of age; universal
Executive branchchief of state: King HAMAD bin Isa Al-Khalifa (since 6 March 1999); Heir Apparent Crown Prince SALMAN bin Hamad Al-Khalifa (son of the monarch, born 21 October 1969)
head of government: Prime Minister KHALIFA bin Salman Al-Khalifa (since 1971); Deputy Prime Ministers ALI bin Khalifa bin Salman Al-Khalifa, MUHAMMAD bin Mubarak Al-Khalifa, Jawad al-ARAIDH
cabinet: Cabinet appointed by the monarch
elections: the monarchy is hereditary; prime minister appointed by the monarch

Legislative branchbicameral legislature consists of the Consultative Council (40 members appointed by the King) and the Council of Representatives or Chamber of Deputies (40 seats; members directly elected to serve four-year terms)
elections: Council of Representatives - last held November-December 2006 (next election to be held in 2010)
election results: Council of Representatives - percent of vote by society - NA; seats by society - al Wifaq (Shia) 17, al Asala (Sunni Salafi) 5, al Minbar (Sunni Muslim Brotherhood) 7, independents 11; note - seats by society as of February 2007 - al Wifaq 17, al Asala 8, al Minbar 7, al Mustaqbal (Moderate Sunni pro-government) 4, unassociated independents (all Sunni) 3, independent affiliated with al Wifaq (Sunni oppositionist) 1

Judicial branchHigh Civil Appeals Court

Political pressure groups and leadersShia activists; Sunni Islamist legislators
other: several small leftist and other groups are active
International organization participationABEDA, AFESD, AMF, FAO, G-77, GCC, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IDB, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IOM (observer), IPU, ISO, ITSO, ITU, ITUC, LAS, MIGA, NAM, OAPEC, OIC, OPCW, PCA, UN, UNCTAD, UNESCO, UNIDO, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO
Flag descriptionred, the traditional color for flags of Persian Gulf states, with a white serrated band (five white points) on the hoist side; the five points represent the five pillars of Islam

Economy - overviewWith its highly developed communication and transport facilities, Bahrain is home to numerous multinational firms with business in the Gulf. Petroleum production and refining account for over 60% of Bahrain's export receipts, over 70% of government revenues, and 11% of GDP (exclusive of allied industries), underpinning Bahrain's strong economic growth in recent years. Aluminum is Bahrain's second major export after oil. Other major segments of Bahrain's economy are the financial and construction sectors. Bahrain is focused on Islamic banking and is competing on an international scale with Malaysia as a worldwide banking center. Bahrain is actively pursuing the diversification and privatization of its economy to reduce the country's dependence on oil. As part of this effort, in August 2006 Bahrain and the US implemented a Free Trade Agreement (FTA), the first FTA between the US and a Gulf state. Continued strong growth hinges on Bahrain's ability to acquire new natural gas supplies as feedstock to support its expanding petrochemical and aluminum industries. Unemployment, especially among the young, and the depletion of oil and underground water resources are long-term economic problems. The global financial crisis is likely to result in slower economic growth for Bahrain during 2009 as tight international credit and a slowing global economy cause funding for many non-oil projects to dry up. Lower oil prices may also cause Bahrain's budget to slip back into deficit.
GDP (purchasing power parity)$26.89 billion (2008 est.)
$25.29 billion (2007 est.)
$23.34 billion (2006 est.)
note: data are in 2008 US dollars
GDP (official exchange rate)$21.24 billion (2008 est.)
GDP - real growth rate(%)6.3% (2008 est.)
8.4% (2007 est.)
6.7% (2006 est.)
GDP - per capita (PPP)$37,400 (2008 est.)
$35,700 (2007 est.)
$33,400 (2006 est.)
note: data are in 2008 US dollars
GDP - composition by sector(%)agriculture: 0.4%
industry: 66.2%
services: 33.3% (2008 est.)
Labor force557,000
note: 44% of the population in the 15-64 age group is non-national (2008 est.)

Labor force - by occupation(%)agriculture: 1%
industry: 79%
services: 20% (1997 est.)
Unemployment rate(%)15% (2005 est.)
Population below poverty line(%)NA%
Household income or consumption by percentage share(%)lowest 10%: NA%
highest 10%: NA%
Investment (gross fixed)(% of GDP)26.6% of GDP (2008 est.)
Budgetrevenues: $6.934 billion
expenditures: $5.612 billion (2008 est.)
Inflation rate (consumer prices)(%)7% (2008 est.)
3.3% (2007 est.)

Stock of money$NA (31 December 2008)
$4.169 billion (31 December 2007)
Stock of quasi money$NA (31 December 2008)
$10.63 billion (31 December 2007)
Stock of domestic credit$NA (31 December 2008)
$10.32 billion (31 December 2007)
Market value of publicly traded shares$21.18 billion (31 December 2008)
$28.13 billion (31 December 2007)
$21.12 billion (31 December 2006)
Economic aid - recipient$103.9 million (2004)

Public debt(% of GDP)28.7% of GDP (2008 est.)
63.8% of GDP (2004 est.)
Agriculture - productsfruit, vegetables; poultry, dairy products; shrimp, fish
Industriespetroleum processing and refining, aluminum smelting, iron pelletization, fertilizers, Islamic and offshore banking, insurance, ship repairing, tourism

Industrial production growth rate(%)6.3% (2008 est.)

Current account balance$2.257 billion (2008 est.)
$2.907 billion (2007 est.)
Exports$17.49 billion (2008 est.)
$13.79 billion (2007 est.)

Exports - commodities(%)petroleum and petroleum products, aluminum, textiles
Exports - partners(%)Saudi Arabia 3.4%, India 2.7%, UAE 2.2% (2008)
Imports$14.25 billion (2008 est.)
$10.93 billion (2007 est.)

Imports - commodities(%)crude oil, machinery, chemicals
Imports - partners(%)Saudi Arabia 26.7%, Japan 8.9%, US 7.8%, China 6.2%, Germany 4.8%, South Korea 4.7%, UK 4.5% (2008)

Reserves of foreign exchange and gold$3.803 billion (31 December 2008 est.)
$4.101 billion (31 December 2007 est.)
Debt - external$10.33 billion (31 December 2008 est.)
$7.858 billion (31 December 2007 est.)

Stock of direct foreign investment - at home$15.01 billion (31 December 2008 est.)
$13.31 billion (31 December 2007 est.)
Stock of direct foreign investment - abroad$9.34 billion (31 December 2008 est.)
$7.72 billion (31 December 2007 est.)
Exchange ratesBahraini dinars (BHD) per US dollar - 0.376 (2008 est.), 0.376 (2007), 0.376 (2006), 0.376 (2005), 0.376 (2004)

Currency (code)Bahraini dinar (BHD)

Telephones - main lines in use220,000 (2008)
Telephones - mobile cellular1.4 million (2008)
Telephone systemgeneral assessment: modern system
domestic: modern fiber-optic integrated services; digital network with rapidly growing use of mobile-cellular telephones
international: country code - 973; landing point for the Fiber-Optic Link Around the Globe (FLAG) submarine cable network that provides links to Asia, Middle East, Europe, and US; tropospheric scatter to Qatar and UAE; microwave radio relay to Saudi Arabia; satellite earth station - 1 (2007)
Internet country code.bh
Internet users402,900 (2008)
Airports3 (2009)
Pipelines(km)gas 20 km; oil 32 km (2008)
Roadways(km)total: 3,498 km
paved: 2,768 km
unpaved: 730 km (2003)

Ports and terminalsMina' Salman, Sitrah
Military branchesBahrain Defense Forces (BDF): Ground Force (includes Air Defense), Naval Force, Air Force, National Guard
Military service age and obligation(years of age)17 years of age for voluntary military service; 15 years of age for NCOs, technicians, and cadets; no conscription (2008)
Manpower available for military servicemales age 16-49: 210,938
females age 16-49: 170,471 (2008 est.)
Manpower fit for military servicemales age 16-49: 171,004
females age 16-49: 144,555 (2009 est.)
Manpower reaching militarily significant age annuallymale: 6,612
female: 6,499 (2009 est.)
Military expenditures(% of GDP)4.5% of GDP (2006)
Disputes - internationalnone

Trafficking in personscurrent situation: Bahrain is a destination country for men and women trafficked for the purposes of involuntary servitude and commercial sexual exploitation; men and women from Africa, South Asia, and Southeast Asia migrate voluntarily to Bahrain to work as laborers or domestic servants where some face conditions of involuntary servitude such as unlawful withholding of passports, restrictions on movements, non-payment of wages, threats, and physical or sexual abuse; women from Thailand, Morocco, Eastern Europe, and Central Asia are trafficked to Bahrain for the purpose of commercial sexual exploitation
tier rating: Tier 2 Watch List - Bahrain is on the Tier 2 Watch List for failing to show evidence of increased efforts to combat human trafficking, particularly efforts that enforce laws against trafficking in persons, and that prevent the punishment of victims of trafficking; during 2007, Bahrain passed a comprehensive law prohibiting all forms of trafficking in persons; the government also established a specialized anti-trafficking unit within the Ministry of Interior to investigate trafficking crimes; however, the government did not report any prosecutions or convictions for trafficking offenses during 2007, despite reports of a substantial problem of involuntary servitude and sex trafficking (2008)
Electricity - production(kWh)10.25 billion kWh (2007 est.)
Electricity - production by source(%)fossil fuel: 100%
hydro: 0%
nuclear: 0%
other: 0% (2001)
Electricity - consumption(kWh)10.1 billion kWh (2007 est.)
Electricity - exports(kWh)0 kWh (2008 est.)
Electricity - imports(kWh)0 kWh (2008 est.)
Oil - production(bbl/day)48,520 bbl/day (2008 est.)
Oil - consumption(bbl/day)38,000 bbl/day (2008 est.)
Oil - exports(bbl/day)238,300 bbl/day (2007 est.)
Oil - imports(bbl/day)228,400 bbl/day (2007 est.)
Oil - proved reserves(bbl)124.6 million bbl (1 January 2009 est.)
Natural gas - production(cu m)12.64 billion cu m (2008 est.)
Natural gas - consumption(cu m)12.64 billion cu m (2008 est.)
Natural gas - exports(cu m)0 cu m (2008)
Natural gas - proved reserves(cu m)92.03 billion cu m (1 January 2009 est.)
HIV/AIDS - adult prevalence rate(%)0.2% (2001 est.)
HIV/AIDS - people living with HIV/AIDSfewer than 600 (2007 est.)
HIV/AIDS - deathsfewer than 200 (2003 est.)
Literacy(%)definition: age 15 and over can read and write
total population: 86.5%
male: 88.6%
female: 83.6% (2001 census)

School life expectancy (primary to tertiary education)(years)total: 15 years
male: 14 years
female: 16 years (2006)
Education expenditures(% of GDP)3.9% of GDP (1991)








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