Economy of Bahrain

The economy of the Kingdom of Bahrain has significantly diversified in recent years to be less dependent on oil and gas, although they remain an important part of the economy. As of 2024, the extraction of oil and natural gas is the third largest sector in the economy. The Kingdom of Bahrain advocates for a mixed economy system. Two examples of Bahrain's advocacy for this system in the late 20th century are heavily investing in the banking and tourism sectors. In 2008, Bahrain was ranked highly in the Global Financial Centres Index (GFCI), which evaluates financial centres using survey responses and quantitative indicators. Bahrain's banking and financial services sector, particularly Islamic banking, have benefited from the regional boom driven by demand for oil. Petroleum is Bahrain's most exported product, accounting for 60% of export receipts, 70% of government revenues, and 11% of GDP. Aluminum is the second most exported product, followed by finance and construction materials.

According to the 2020 edition of the Index of Economic Freedom, Bahrain has the fourth-freest economy in the Middle East and North Africa region and is the 40th-freest economy in the world. One alternative index providing the same statistics places Bahrain at 70th place. Bahrain was recognized by the World Bank as a high-income economy.