Saudi, Bahrain non-oil trade hits $2.17 billion in three quarters

Business Bureau, Gulf Today

Non-oil trade between Saudi Arabia and Bahrain increased 43 per cent to $688.4 million during the third quarter (Q3) of 2020 compared to $481 million during Q3 of 2019.

Trade between two Kingdoms hit $2.17 billion during the first three quarters of 2020.

The surge in trade between both countries comes following the ease of restrictions on cargo transit over the King Fahd Causeway back in August.

Bi-lateral commerce between the two nations surged 12 per cent past the $2 billion mark during the first three quarters of 2020 to record a substantial year-on-year increase from the 2019 figure of $1.93 billion.

Saudi Arabia is one of Bahrain’s key trading partners, with majority of imports and exports flowing via the King Fahd Causeway - a 25 kilometre bridge connecting both Kingdoms by road.

It was also recently announced that Bahrain Customs has installed high-tech artificial intelligence scanners at the King Fahd Causeway, automating data collection and allowing shipment inspections to take place before reaching the border.

With the lowest manufacturing costs in the region, Bahrain is fast becoming the manufacturing and logistics hub of choice for many global manufacturers including Arla, Reckitt Benckiser, Mondelez and Olayan Kimberley-Clark.

Abdulhakim Al Shamary, Board Member of the Bahrain Chamber of Commerce and Industry (BCCI), said: “The King Fahd Causeway acts as an essential link between Bahrain and the wider $1.5 trillion Gulf economy for millions of passengers and commercial trucks each year.

“Despite COVID-19, commercial drivers have still been able to use the bridge enabling critical continuity for the logistics sector”.

Saudi Arabia is one of Bahrain’s key trading partners, with both nations connected by bridge.

The Bahrain Economic Development Board (EDB) is an investment promotion agency with overall responsibility for attracting investment into the Kingdom and supporting initiatives that enhance the investment climate.

The EDB works with the government and both current and prospective investors, in order to ensure that Bahrain’s investment climate is attractive, to communicate the key strengths, and to identify where opportunities exist for further economic growth through investment.

The EDB focuses on several economic sectors that capitalise on Bahrain’s competitive advantages and provide significant investment opportunities. These sectors include financial services, manufacturing, ICT, tourism, logistics and transport. Saudi Arabia, Bahrain have both benefited from the easing of restrictions on cargo transit over the King Fahd Causeway in August.

Non-oil trade between the two states increased by 43 per cent in the third quarter of 2020, hitting $688 million. The value of trade between the two kingdoms for the first three quarters of this year now stands at nearly $2.2 billion.  Bi-lateral commerce between the two nations increased 12 per cent during the first three quarters of 2020, representing a year-on-year rise from $1.93 billion in 2019.

Restrictions were imposed on the causeway earlier this year when borders closed following the onset of the Covid-19 pandemic.

The 25 kilometre King Fahd Causeway, which connects the two Kingdoms by road, is a key trade artery in the Gulf region and supports a huge amount of trade between Saudi and Bahrain.

The bridge, which is being updated, has played an important role in facilitating the growth in e-commerce trade in the Gulf during the pandemic.  Bahrain Customs recently installed artificial intelligence scanners at the causeway, automating data collection and allowing shipment inspections to take place before reaching the border.

“The King Fahd Causeway acts as an essential link between Bahrain and the wider $1.5 trillion Gulf economy for millions of passengers and commercial trucks each year,” said Abdulhakim Al Shamary, board member of the Bahrain Chamber of Commerce and Industry (BCCI).

“Despite Covid-19, commercial drivers have still been able to use the bridge enabling critical continuity for the logistics sector”.