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DOCUMENT OF INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION

Public Disclosure Authorized Not For Public Use

Report No. 24la-BH

CURRENT ECONOMIC POSITION Public Disclosure Authorized

AND

PROSPECTS

RARRATN Public Disclosure Authorized

Dece..Der .28, 1977.3 Public Disclosure Authorized Erurope, Midd"Le East and'iNorth Airrica Region Country Programs I

This report was prepared for official use only by the Bank Group. It may not be published, quoted or cited without Bank Group authorization. The Bank Group does not accept responsibility for the accuracy or completeness of the report. Currency Equivaients

uurrency Unit

Bahrain Dinar (BD)

1 BD = 1,000 fils

1970 BD 1 US$ 2.10 US$ 1 = BD o.h8

1971-72 BD 1 = US$ 2.28 US$ 1 = BD 0.44

Since February 1973

BD 1 = US$ 2.53 US$ 1 = BD 0.4o iItDLJI: url Uu~LEANi 1

-A~~ ,T rage No.

BASIC DATA

MAP

S-UMMARY AND CONCLUSIONS ...... I-iv

i. ThiE SETTING ......

II. HUMAN RESOURCES ...... 2

Population and Employment ...... 2 Education ...... 3 Health ...... 5......

III. PRINCIPAL ECONOMIC SECTORS ...... 5

Oil ...... 6 Natural Gas...... 7 Industry... 7 Water Resources ...... 11 Agriculture . . .12 Fishing ... 13 Tourism .1 ...... 14 Transport ... 15 Air Transport . . 15 Road Transport. ... 15 Sea Transport . . .16 Telecommunications ... 17 Power..17 UrbanUrbnowaer Supy...... W4ater Sunnlv --- ee*- .... ,...... ------1817

IV. RECENT PERFORMANCE ------18

External Seetnr -- -- 19 Foreign Assets . .20 External Aid ...... 21 Internal Finance ...... 21 Money and Bankino ---- 25 Monetary Developments ...... 26 Prinp--2 Piel e s == =. =. =.==...... lJages.27a ...... ==...... 2 7

V. DEVELOPMENT PROSPECTS AND STRATEGY .27

This report is based on the findings of an economic mission Mehsrs. Haoeld Lahsen an Me-hi 1A73 Th. mi-li. co-4q*.z f Messrs. Harold Larsen and Mehdi Ali.

Page l of 2 nages

COUNTRY DATA - BLKAIN

AREA 2 POPULATION DENSITY 660 m 12 Rate of Growtht 3.6 (from 1970 to 1972) 3,670 per km2 of arable land

POPULATION CHARACTERISTICS (1971) HEALTH (1971) Crude Birth Rate (per 1000) 30 Ponulation per physician 2.000 Crude Death Rate (per 1,000) .. Population per hospital bed 238 Infant Mortality (per 1,000 live births) 23

INCOME DISTRIBUTION DISTRIBUTION OF LAND OWNERSHIP % of national income, highest quintile .. % owned by top 10% of owners lowest quintile .. % owned by smallest 10% of owners ..

ACCESS TO PTPED WATER (1071! ArCr.ES TO FTL.TRTrITTV (IQ71' % of population - urban 90 % of population - urban 95 - rural - rural

NUTRITION EDUCATION (1971) Calorie intake as % of requirements _ Adult literacy rate % 46 Per capita protein intake Primary school enrollment % 74

1/ GNP PER CAPITA in 1971 US $ 640

GROSS NATIONAL PRODUCT IN 1971 ANNUAL RATE OF GROWTH (%. constant prices)

US $ Mln. % 1960-65 1965-70 1971

Ghr at Market Prlcesi .8 lo0 . Gross Domestic Investment . Gross National Saving *0 . Current Account Balance -28.0 18.0 * * Exports of Goods, NFS . T--orts of Goods, NFS..**

OUTPUT, LABOR FORCE AND PRODUCTIVITY IN 1971

Value Added Labor Force V. A. Per Worker US$Mln. 7 Mln. % US $ % Agriculture 2.7 1.0 0.004 6.5 675 I P5 Industry 216.8 76.5 0.018 29.5 11,970 257.8 Services 6.u 22.5 0037 62.0 1 7,7w0 3. Unallocated . 0.002 .0 °_ Total/Average 28 , 100.0 0.061 100.0 100.0

GOVERNMENT FINANCE General Government Central Government ( BD Mln.) % of GDP ( BD Mln.) %of GDP 1972 197 2 197 2 1972

Current Receipts *. *- 32.8I24.6 Current Expenditure 0.o 26.1 19.6 Current Surplus * * 6.7 5-0 Capital Expenditures *. *- 7.3 5.5 External Assistance (net) .. *- --

1/ Tne Per Capita GNP estimate is at 1970 market prices, calculated by the same conversion technique as the 1972 World Bank Atlas. All other conversions to dollars in this table are at the average exchange rate prevailing during the period covered. 2/ Total labor force; unemployed are allocated to sector of their normal occupation. "Unallocated" consists mainly of unemployed workers seeking their first job.

not available not applicable Page 2 of 2 pages

COUNTRY DATA - BAHR.AIN

MONEY, CREDIT and PRICES 1969 1970 1971 1972 (Million BD outstanding end neriod)

Money and Quasi Money 40.5 47-7 62.8 75.9 Bank Credit to Public Sector (net) -8.7 -8.2 -9.9 -4.6 Bank Credit to Private Sector 23.5 24-7 35-7 44.1

(Percentages or Index Numbers)

Money and Quasi Money as % of GDP .. 41.3 W0.6 57.0 General Price Index (1963 = 100) *. Annual percentage changes in: General Price Index .. Bank credit to Public Sector 33.3 5.7 -20.7 115.2 Bank credit to Private Sector 30.6 5.1 "4.5 23-5

BALANCE OF PAYMENTS MERCHANDISE EXPORTS (AVERAGE 1968-71)

1969 1970 1971 US $ Mln % (Millions US $) Raf9nvA 011 202.0 8'lo Exports of Goods, NFS 233o4 237.9 316.2 Others (including re-exports) 47.3 19.0 Imports of Goods, NFS 219.0 286.9 346.8 Resource Gap (deficit = -) 4.L4 -9,O -307.

Interest Payments (net) L..2 1 2 )4. All nther cnmmoditip .... Workers' Remittances -. . Total 2 9.3 10Q,O Other Factor Payments (net) 4.9 -7.1 -2.0 Net Transfers o. .. .. EXTERNAL DEBT, DECEMBER 31. 197 2 Balance on Current Account 2.7 -51.9 -_2B970

it US $~~~~~~~~~~~~~~~~~~~~~TMl, Direct Foreign Investment 2.1 65.1 54.7 Net MLT Borrowing .. 6.. O Public Debt, incl. guaranteed 5,9 Disbursements .. .. Non-Guaranteed Private Debt 0 Amortization o. Total outstanding & Disbursed 5,9 Subtotal o8 1§ 267l Capital Grants .. .- .. DEBT SERVICE RATIO for 1974- Other Capital (net) O. .. .. % Other items n.e.i _, , , Increase in Reserves (+) 4.8 13.2 26.7 Public Debt, incl. guaranteed 0.2 - ~~~~~Non-Guaranteed Private Debt.. Gross Reserves (end year) 3/ 116.3 128.3 182.2 Total outstanding & Disbursed Net Reserves (end year) 874 100.l4 135.7 0.2

RATE OF EXCnANCE IBRD/IDA Lr,NDING, (latest ,-uonth) (Million US

Through - FebrKuazy. 1973 IBRD IDA US $ 1.00 = BD 0.44 BD 1.00 = US $ 2.28 Outstanding & Disbursed undisbursed Since - Februaary, 1973 Outstanding incl. Undisbursed US $ 1.00 = BD 0.40 BD 1.00 = US $ 2.53

1/ Ratio of Debt Service to Exports of Goods and Non-Factor Services. _/ Of Alnminum Bahrain Company only. 3/ Official reserves plus commercial banks' declared holdings.

not available

not applicable «MsA Region iBRD 10471R b ,. JULY 1973

X -kd , 0 | E t

E4i '

/~~~~~~~~~~~

* , ,~~~/ -- ,;

0~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~:

I 1-5;;?~~~

7 ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~.

SUMM'ARY AND CONCLUSIONS i. Until the 1930Ws, Bahrainis economy depended largely on pearl div- ing, fishing and transit trade. Today, the dominant factors in the economy are the petroleum industry, continuing transit trade, and more recently, industrial diversification. ii. Bahrain's population was estimated at 224,000 in 1972. About 18 percent of the population are expatriates, mostly Omanis, Indians, Pakistanis and Iranians. Population growth is high, amounting to 3.6 percent annually. Famlly planning as a means to control the population growth is under Govern- ment consideration, but this step has not yet been taken. The economically active population in 1971 was 28 percent of the total population. Of the economically active population, 7 percent was engaged in agriculture and fishing, 14 percent in industry (of which 7 percent in petroleum production and refining), 17 percent in construction, 13 in trade and ancillary services, and 14 percent in transport, finance and 30 percent in community, social and personal services. Unemployment is relatively low (see Table 1.3) iii. Bahrain's economic and social infrastructure are well developed. The country has a highly advanced transportation system, with good roads linking most of the country. Bahrain International Airport began jumbo jet service in November, 1971. There is an earth satellite station which provides reliable international telephone and telex service. The major port in Bahrain, Mina Sulman, has a deep-harbor and free transit zone, providing berthing facilities for six ocean-going snips and preparation is underway to enlarge these facilities. Domestic electricity supply is available to practically every citizen, but industry needs are growing fast. Foundation work began in 1972 on a new major electric power plant combined with water desal- ination for the first time. According to the 1971 census, enrollment in primary schools in Bahrain for those between the ages 6-13 years was 74 percent. Population per hospital bed was 238. It is also reported that about 80 percent of the births are in hospitals. iv. Bahrain was the first oil producer in the Southern Gulf; current production, however, is relatively low amounting to 26 million barrels in 1972, and has been declining since 1970. Also small are Bahrain's on-shore oil reserves amounting to 375 million barrels, compared with 7,000 million barrels in Qatar and 20,768 million barrels in Abu Dhabi. Bahrain's on-shore oil reserves are equivalent to about 12 years production at the current rate. Geo- logists expect no further discoveries of maior oil reserves on Bahrain island. In the offshore areas, however, oil has been found in the Abu Sa'afa field located between Bahrain and Saudi Arabia. Production began in 1966: revenues are to be shared equally by Bahrain and Saudi Arabia. Production of this field, which amounted to 34 million barrels in 1972, was growing rapidly until 1972 when it slowed down to 8 percent annuallv. Future growth rate iq PxnprtPd t-o bep inwer- amnunl-inf tn 3 nerrent annuiallv in 1974-75; with no further growth is expected in the years 1976-77. Independent of oil thpre are .cnhrt-fnl repnrvpe of naturnl na anmotinting ton nhoiit 20-O00 billion cubic feet. Current use is only 65 billion cubic feet per year. No other commercially exnloitahle mineral resourres are known on the islands. v . Oil has been the engine of growth for t Bahrain economy. It accounts for 70 percent of the GDP and 80 percent of Government revenue. Oil output =excpperien`ced za st-eady gro-th in the yas1965-19'70 but th en I.egan to LJULjUC2~~ L LILL U . aLC t~ '-~ L.L -* ..JC 0 IaA VJ%JJ I -2 I '2 UUL&_ 6 CLL V=CLL.I LU slow down. GDP grew by between 7 to 8 percent annually in 1971 and 1972 at current: pric LL. LLTr LlkC UVCLa i L cLUWLLI Wa> L X UWUL LLldTI LI 1971, the rapid growth of the non-oil sectors partly offsetting the fall in o_i out:put. Ini thle years 1I9u707, the most rapLiU.Ly growir sectors were aon oil manufacturing (150 percent annually), banking and insurance (75 percent anrLudwC0yJ , transportL c-unct idC i O(70LL p eaLrUcen-Lt -aniLnuaLLIllU-y) , and construction (23 percent annually). Part of the rise of GDP in current prices was due to a rise in doMeStLic prices ofL aboULt peCeIL annually in tne last three years, due largely to higher import prices. vi. Bahrain has continued to play its traditional entrepot role. About one-third of imports are re-exported, mostly to Saudi Arabia and the Guif States. Trade is still the second source of lncome after oil, constituting to about 10 percent of the GNP. This sector grew by about 9 percent annually in the last two years. vii. The agricultural area in Bahrain is now about 15,000 acres, nearly two-thirds of which are planted with date palms and the remainder with vegetables, fruit trees and forage crops. The agriculture and fishing sector constitutes only about 2 percent of the GNP, and empioys about 5 percent ot the economically active population. Most of Bahrain's foodstuffs are imported, including dates. A major problem facing Bahrain and its agriculture is that underground water, the only source of fresh water, is becoming saline and diminishing due to lack ot replenishment. FAO is currently making a survey of land and water resources, the results of which are expected to be available in 1974. viii. Bahrain's coastal waters reportedly have sufficient fish resources to justify commercial exploitation. Existing fishing is traditional, and the catch is insufficient to supply domestic consumption. The deficit is made good by imports from Gulf countries to the east. Considerable progress, however, has been made in exploitation of shrimp resources, with exports mostly to the United States, Europe, and Japan. ix. Non-oil industry is still at an early stage. Not until the 1960's were non-oil industrial projects established. Total employment in non-oil industries in 1970 was about 29 percent of the labor force in manufacturing and petroleum. Types of small-scale industries include poultry raising, dairying, baking, paper production, machinery repair, building materials, printing and publishing. Most suffer from the smallness of the domestic market. Larger enterprises are in ship repairing, fish processing and plastics. In 1971, an aluminum smelter, the largest non-oil industrial enterprise, was established, using alumina imported from Australia. All output is exported. The smelter may provide a base for other manufacturers (e.g. powder aluminum, paints, fireworks, etc.). x. Since 1968, Government revenue has recorded a steady rise, increasing from BD 18 7 million to BD 32.8 million in 1972, or by 7 npercent. This was mostlv related to the rise in oil receipts which account for about 80 percent of Government revenue. Non-oil receipts, largely from customs duties began to rise sharply since 1970, but their share in government revenue re- m9inear1w elltively sgmall xi.Crren expe.ditres,accounting for On percent- o,P total Covernm.ent S-.LL LOL L~ CAjJC_P U.A L.141 0Z %,%-.L.tSI UL LLL, UA LJLW pI OLU .. I A L4 UlVOtLL expenditures, increased from BD 15.1 million in 1968 to BD 26.1 million in 1,72). Education clairmedA25 percentL of current expenditures, anA h,ealth1 ablout .5I S. -..UUa J.I L.LaASl. S. _ILL L~L L L_£ _L.L. LL - It ~.LU 15 percent. Capital expenditures, about 20 percent of total expenditures, wentU S.flcJy infrastructural.or proJects (electricity, water, airport facil. ities, etc.). Since 1970, the sharp rise in expenditures, particulArly cap- itali expenditures, budgetary__ postio fro one-- of_ XL.Lc. L. CIp L J .U C~ reverse'LVL~ U tbLeLAC k3VCGovernmrlent's LLSL[L S UU tUgCLCLYy IUZ.LL.LULL JLLIJLL ULMLL JL. surplus to one recording a small deficit, largely financed from the banking system. xi-. The overall balance of payments has recorded a steadily rE islIg surplus. The surpluis increased from BD 2.3 million in 1969 to BD 11.7 million S 1fl~4 - .'-, ~ f il 17/1. Total net foreign reserves in December 1972 reacihe a level of DB 67.5 million, or the equivalent of 8 months' imports at the 1971 level. xiii. Bahrain's external debt is negligible, confined to only 3 loans recently received from the Kuwait Fund, totalling KD 2 million. Service payments for these loans will peak in 1974, giving an estimated debt service ratio of 0.2 percent. xiv. The prospects of economic diversification in Bahrain seem promising. There are encouraging prospects in developing Bahrain as a service center for the Gulf area. Bahraints political stabilitv, its lack of corporate tax and restrictions on financial transfers, and its advanced telecommunications provide a good climate for financial, banking and other related services. There are promising prospects in establishing light industries with a regional export perspective. Also, the abundance of gas provides considerable scope for developing gas as a major export commodity, as well as developing gas-based capital intensive, export oriented industries in the field of fertilizer, petrochemical, steel, etc. Finally, there are development possibilities in fishing. xv. In its policies to achieve diversification, the Government largely relies on attracting local and foreign private enterprise, with its minor financial participation, while seeking to provide adequate infrastructure needed. Determining the macro-economic priority of a project in Bahrain is based on ad hoc basis and not on rigorous programming and economic planning. The country does not yet have a formal planning organization. There is a committee which meets ad hoc basis as a planning and coordinating board to review on-going projects and decide on new projects for the coming few years. The committee consists of the Minister (and Deputy Minister) of Finance and the Minister (and Deputy Minister) of Development and Engineering Services, with the latter Ministry acting as executing agency for the public sector projects. - iv - xvi. Financing the public sector projects is to be made largely from bucdgetary sources, but the contribution from foreign sources, mostly from Inter-Arab Development Funds, will rise substantiallv over the coming years. Financing the private sector projects is to be made through the readily available bank credit. I. THE SETTING

1.* LL I LTLh ofL ItateBahraitLLL IL IIPI anCZ ahLLL agoC.L6 L 3LWJJoJ lo -lyLn islands, with a total area of 660 square kilometers, situated off Saudi Arabia

etweeri KNuwait andU thLle Qatar peninsula. Ofl. LIUhe LA PL.L[lC.LPcL. slandsLU, trLILe are of major economic importance. The largest is Bahrain island, about 50 kilometers long and from 13 to 16 ki'lometers widpe, with the C Lcapital, riaiLa, the main port, Mina Sulman, the onshore oil field, the refinery, and the business and commercial community. To the northeast of Balrain lies riuharraq Is- land (where the international airport is located), connected to Manama by a causeway 1-1/2 miles iong. Sitra isiand to the south of Munarraq, aiso connected to Bahrain by a bridge, accommodates the oil port.

2. The area under cultivation in Bahrain is now approximately only 15,000 acres (10 percent of the land area), concentrated along the north and north-west coasts with nearly two-thirds planted with date palms and the remainder with vegetables, fruit trees and forage crops.

3. Bahrain's climate is pleasant apart from the summer months (June- September), when it becomes hot and extremely humid. Rainfall is scanty, averaging to 75 mm (2 inches) annually. There are no rivers in Bahrain. The country depends solely on groundwater. Groundwater from geological age aquifers below Saudi Arabia, is diminishing, and becoming increasingly saline. As a result, water represents a serious problem for Bahrain in general, and her agricultural development in particular.

4. The middle and the south of Bahrain island is barren and consists of low rolling hills with rocky cliffs and dry wadis. In the center of the island, in the desert surrounding a rocky and steepsided hill known as Jebal ad-Dukhan, oil was found in 1932, making Bahrain the first oil producer in the southern Gulf. However, Bahrain oil production is now declining, and reserves are small compared to the neighboring states; geologists expect no further major oil discoveries on the island. Independent of the oil fields, there are large reserves of natural gas.

5. The geographical position of Bahrain, and its enjoyment of artesian water, enabled it for many centuries to play the role of a center for entrepot trade in the Gulf. Trade and ancillary services are still the second source of income after oil. Bahrain's coastal water reportedly abounds with a large variety of fish. Existing fishing, however, is traditional, and recently has been failing to meet domestic demand.

6. Bahrain's population was estimated at 224,000 in 1972, giving a population density averaging to about 340 persons per square kilometer, the highest in the Southern Gulf. The majority of the population lives in the cities, giving an urbanization ratio of about 78 percent. Population growth is also high, about 3.6 percent annually. Nearly 18 percent of the population are expatriates, mostly Omanis, Indians, Pakistanis and Iranians.

7. Bahrain, formerly a British protectorate, became independent on August 14, 1971, when the treaty arrangements with Britain were terminated, and a new treaty of friendship was signed. On September 15 of the same year, it became a member of the United Nations, and on September 15, 1972, joined -2-

cllnter na~t-ionna IMonetanry- Pvundl and t-he Wo-rld Bannk. Bahrain'sc political stability has made it attractive for foreign investment.

8. Until the 1930's, Bahrain's economy depended largely on pearl div- ing, fishing, and transit trade. Today, the domina-nt factors in the economy are the petroleum industry, continuing transit trade, and more recently, industrial diversifi_cation.

II. HUMIAN RFSOURCES

Ppulatiotn and Emplo0yment

9. ie 197I1I census gave a populaion of' 216,078, OL. WhIch 3/,08085 (nearly 18 percent) were non-Bahraini. The 1965 census showed 182,203, giving a compound growth rate of 2.9 percenLt per annum between the two census. For the same period, Bahraini population grew faster, at a compound growth rate of 3.6 percent per annum (TaDie 1.1). The siower growth rate of the total population is due to the decline in the number of non- Bahrainis during the above period, partly because of the return of some Omanis to their own country.

10. The 1971 census shows that the population is predominantly young, wich 49.3 percent of the Bahrainis below 15 years of age; for non-Bahrainis, the ratio is 24.8. The census also shows about 78 percent of the population lives in urban areas. while the average annual rate of population increase between 1965 and 1971 was 2.9 percent, the corresponding average for the gainfully employed was 2.1 percent. Tnis may require that either employment be increased, or population growth be checked or stabilized, or both. Family planning is under Government consideration but no step has yet been taken to put it into practice.

11. The economically active population in 1971 was only 28 percent of total population. Of the economically active population, 6.5 percent was in agriculture and fishing, 7 percent was in petroleum production and refining, 17 percent in construction and 27 percent in trade, transport, finance and business services; about 3 percent was reported as unemployed (Table 1.4).

12. Currently, there is little unemployment of unskilled labor, due to the rise in construction activities since 1970. Unemployment is concentrated among high school and liberal arts college graduates and largely among Bahrainis (1,400 persons). Government seeks to alleviate this by Bahrainiza- tion of the labor force, since expatriates are 40 percent of the economically active population. A Council of Human Resources Planning was established in 1971. The Council, which is chiaired by the Minister of Education, with rep- resentatives of the Ministries of Labor and Social Affairs, Health, Develop- ment, F'inance, and Interior as members, is required to prepare recommenda- tions f'or human resource development in the next five years, and report to the Council of Ministers. -3-

Education

13. Bahrain has been investing heavily in education since 1919. Edu- cation still receives the highest share of government's current expenditures (25 nercent). The outcome has been a relatively high rate of literacy. Ac- cording to the 1971 census, the percentage of literacy among the population (both sexes) of 10 years and over was about 47 npercent (Table 10.1).

14. The nresernt educa,t-ion csstem consists of throe staes: 6er of primary, 2 years of intermediate (preparatory) and 3 years of secondary sch.ooling. ITn aeddition there ic 2yarc of nost-scoendary (higher) teachers' education. For university education, graduates from the secondary schools m.yreceive scho shis to s ao. AC of the academic yar1Q74/75 the intermediate stage will be extended to 3 years. Consequently, the sys- t-m w411 be 6- slmilar to the prevailing patterr. of m.ost count-rie o f the region.

15. Education in Bahrain is public and free at all stages. There are, however, a n.um-ber of private fee=chargilng sch.-toolls, suchA. as kindergartens, and6 non-Bahraini mi.ssion schools for different stages. The curricula of these private schools are subject to Government in.spection. All schools areopn for both Bahrainis and non-Bahrainis.

16. In the academic year 1971/72, there were 75 primary schools: 43 .L.for uoysuUy dIUand 3'.J Z. 'ofriV gir's,L.~ withL.LLL a totalL LJL school~LLUU J. populationLU.L0. L L of. 36,95_),7J LUUMLLcor,rls LJ.2, ing of 21,197 boys and 15,755 girls. According to 1971 census, the rate of enrollment Li priIary education of. the age-group between 6 andu 13 represented' approximately 74 percent, with nearly 83 percent for boys and 65 percent for girls. Girls enrollment in primary schools has been rising steauily. The percentage of girls to the total number of pupils rose from 33 percent in 1960/61 to 43 percent in 1970/71.

17. Primary school teachers are all Bahrainis. About 60 percent of t'nem are untrained, the rest being graduates of the two-year post secondary teacher training colleges, one for men opened in 1966, and another for women opened in 1967. According to the UNESCO, these institutes seem adequate at this stage. However, it is partly due to the present quality of teachers that the rate of repeaters is relatively high. Out of some 37,000 pupils in all classes in 1971/72, about 24 percent were repeaters. In May 1973, it was announced that a third teacher training college would be established, to take 500 students and open in September 1975.

18. In the intermediate (preparatory) school in 1971/72, there were 21 schools, 12 for boys and 9 for girls. The number of students enrolled were 7,266: 4,045 boys and 3,221 girls (see Table 10.5). The percentage of girls to boys has steadily increased from 17.7 in 1960 to 44.3 in 1971. As was stated, the intermediate school course is expected to increase to 3 year as in 1974/75 to include practical and vocational subjects. - 4 -

19. Th.ere were 11 schools, for boys and6for girls, for academic or general secondary education, in 1971/72. The percentage of girls increased fromL 9 in 1960 to 5…5 in 19S71. GIove-Ment policy has been to admit lto sec= ondary education all graduates of intermediate schools who apply, amounting lo 90 pDercer.t of etheitotal. In consequence, t..Ois type of education turned.I out an annual average of 750 graduates in the last three years, of whom only a i.w pursu hiULe edCL.-6LuU...t.L, whle. .th rest L do o ~ eULIasilJy fin theL type of~U ermployment they prefer, namely clerical and office jobs. Admission to second- arLy teUJL_aL.LULLaryductio isthereloreA.L0 Li A LA undULC er ------.C.UL sideration;.UJ LLL,dL t..eauhrterconzLLLJL. .C L%kkrL.4_ that some selectivity should be used to accept only sufficient numbers re- private- qulred for4UL Governr.entk~VCLLILLCILeu jUl orU. jl. V~L emloy.etCLL~.UyJI~LClL , lnLLL CLUU.LL..L%JLIadi nt LU L.LL3Q.Mhs WiLL.h LIIda proceed to teachers' training or university education.

20. In general secondary education, the number of students in liberal arts is alm1ost thrt-e times the n,umuber in thLe sciences section. Il±e consequence of this is almost a similar proportion both in the two post-secondary training colleges as well as amorng university graduates. Between 1960 and 1971, the number of graduates by field of specialization was as follows: 59 in humanities, 23 in education, 17 in fine arts, 137 in social sciences, 31 in law, 12 in engineering, 39 in medical sciences and 10 in agriculture (see Tables 10.6 and 10.7). In other words, tne ratio of speciaiization in arts to that in science is 5 to 1. A balance consistent with the employment needs of the economy must be considered to avoid shortages in certain speciaiiza- tions and surpluses in others.

21. In addition-to the general secondary schools, there are two industrial secondary schools. Tne first was established in 1936 and the second in 1969. Total enrollment in the two schools was 601 boys in 1971. A third technical school in Muhurraq is expected to be opened in 1972/73, with a capacity of 300 students. Graduates of these schools have so far encountered no employment problems. The proposed policy ot selectivity in general secondary education could increase the number of applicants of intermediate graduates for this type of education. However, any further expansion in industrial education must be carefully considered in the light of changing needs for skills. Two commercial sections, attached to the academic secondary sclhools, were opened in 1969 and 1970, with an enrollment in 1971/72 of 524 boys and 109 girls. The UNESCO estimated that the intake into both industrial and commercial schools could be doubled by 1974/75, while that of academic secondary (liberal) education could be decreased by about 20 percent of tne present intake.

22. For higher technical training, there is the Gulf Technical College, a post-secondary institution for all Gulf States in the fields of engineering, business and administration, with free education and boarding facilities for Bahrainis and non-Bahrainis. The College was established in 1970 through the cooperation of the Government of Bahrain with the Ruler of Abu Dhabi and the British Ministry of Overseas Development. Its courses vary from one or two years for commercial and administrative courses to four years for technical courses. -5-

As GoverimerLt policy is Lo make p-.RAY and Lnterruediate educaton available for all children, the need for teachers will increase. The UNDP was requesteu to assist Jin strengthening and up-grading teacher training, as well as to expand the two existing colleges to become four training years. Tne 1972 UNDP program allocated $453,500 ror this purpose.

Health

24. Modern health services, provided free to ail residents, were introduced in 1925. Many of the endemic and infectious diseases (e.g. small- pox, malaria, trachoma and dysentery), have been largely reduced. The estimated infant mortality rate is 23 per 1,000 live births up to one month.

25. In 1971, there were 7 hospitals, 12 health centers (3 with maternity beds), and 4 school clinics. For the same year, the ratio of government physicians to population was approximately 1:2,000, and that of hospital beds, 238. It is reported that about 80 percent of children are born in hospitals.

26. The C-'fvernment's current long-term health program calls for Bahrain- ization of all categories of the medical staff through training abroad and at home. In 1969, onlv 7.3 percent of doctors and 3 percent of nurses were Bahraini nationals. The program seeks the expansion of the existing nursing school, as well as broadening the specialization of the Gulf Technical Col- lege to include training in the medical field, and projects a replacement of expatriates by trained nationals in all health staff categories by 1985.

III. PRINCIPAL ECONOMIC SECTORS

27. Bahrain lacks the national accounts statistics necessary for quan- tifving macro-economic results. However, from such data as is available, the Mission was able to construct preliminary estimates of GDP for the years 1970- 72. According to these estimates, the economy is dominated by the oil sector which accounts for 70 percent of the GDP. As oil industry is largely owned by foreign enterprises, a substantial part of the GDP comprises income to abroad, leaving a significantly smaller GNP. The oil sector experienced steady growth in the years 1965-70, but began to slow down since 1970. Ac- cording to the Mission estimates, GDP grew by between 7 to 8 percent annually in 1971 and 1972 at current prices. 1/ In 1972, however, GDP growth rate was slightly lower than in 1971.

1/ No estimate of national accounts in constant prices is possible due to the lack of apDropriate nrice deflators. However, domestic prices in recent years have risen at about 6 percent annually, largely due to increases in import orices (Table 9.1). - 6 -

2'8. The rapid grntwh nf the non-nil sctors avnidpd a m,,h lnwer GTDP g.rowth rate in 1972, thus partly offsetting the fall in oil output. The most r.apidly cgroawing sectors in the vpnrs 1970-72 wpre m.nmifrtai,,rinc (150 percent: per annum), banking and insurance (75 percent per annum), transport and coimunication (70 p'rcent per annnim) Agricultur and tAa recore a relatively slower growth of about 14 percent per annum and 9 percent per annum rOejJCt..VL.t-y.

Oil 29. In recent vears, the oil sector provides about 80 percent of Gov- ernment revenue, and generates about 85 percent of the country's foreign exchange earnings. Exploration for onshore oil began in 1925 when the Ruler of Bahrain granted a concession to the Eastern and General Syndicate. In 1928, the Svndicate sold its rights to Standard Oil of California (SOCAL), which in 1930 assigned the concession to its fullv owned subsidiary, the Bahrain Petroleum Companv (BAPCO). In 1936, SOCAL sold to Texaco 50 percent of its rights in Bahrain. Oil was discovered in 1932, making Bahrain the first c,il producer in the southern Gulf. However, it was not until 1935 that commercial production started. The major oilfield is in South Awali in the middle of Bahrain Island.

30. Offshore oil was discovered at Abu Sa'afa, between Bahrain and Saudi Arabia, by the Arabian AmericandLU UUllordLL.panykaRIOuu) UWL1eU Dy Caltex (60 percent), Exxon (30 percent), and Mobil (10 percent). Production from Abu Sa'afa started in 1966, with revenues shared equally by Bahrain and Saudi Arabia according to an unwritten understanding between the two ruling families. Bahrain is a member of the Organization of Arab Petroleum Export- ing Countries (OAPEC), but not the Organization of Petroleum Exporting Com- panies (OPEC). However, according to its agreement with Bahrain, BArCO has applied all the OPEC agreements to Bahrain (e.g. the Tehran and the Geneva Agreements) .

31. Although Bahrain is the oldest oil producer in the southern Gult, her oil resources and production are now small compared to those of neighboring states. Proven oil reserves in 1973 were about 375 million barrels compared to 7,000 million barrels in Qatar and 20,768 million barrels in Abu Dhabi (see Table 8.3).

32. Crude oil production from South Awali rose steadily in the period 1963-68, increasing from 16.5 million barrels in 1963 to 27.6 million barrels in 1968, or at an annual compound growth rate of nearly 11 percent. For the years 1968-1970, production stagnated and then started to decline after 1970, dropping from 28.0 million barrels in 1970 to 27.3 million barrels in 1971 and to 25.5 million barrels in 1972. Onshore oil reserves at the present are estimated to be equivalent to about 12 years production at the current rate. Geologists expect no further major oil discoveries on Bahrain island.

33. Offshore crude oil production from Abu Sa'afa field has been rising steadily since 1966. It increased from 11.5 million barrels in 1966 to 32.1 million barrels in 1971 and 34.2 million barrels in 1972 (see Table 8.6). Ac- cording to oil company sources, the slower annual rate of growth in production (8 percent) experienced in 1972 is expected to decline to about 3 percent in the years 1974-1975, with no further growth in the years 1976-1977. - 7 -

34. Bahrain is unique in the Gulf as it exports only refined oil. BAPCO operates one of the world's largest petroleum refineries with a capacity of approximately 300,000 barrels per day. In 1972, refined products totalled about 87 million US barrels. This indicates that the refinery has been working at about 80 percent of its capacity. Bahrain's on-shore oil fields supplied only about 30 percent of the crude stock, with the remainder being imported by underwater pipeline from Damman, Saudi Arabia (Table 8.5). The position of the oil refining industry is discussed in the section on industry.

Natural Gas

35. Independent of oil, Bahrain has substantial reserves of natural gas amounting to 20,000 billion cubic feet, located within easy reach of sea transport. These reserves are roughly equivalent to 3.5 billion barrels of crude oil and are roughly twice the size of the Sui Gas fields in Pakistan and 1/5 to 1/3 the size of the Algerian gas fields depending on recovery techniques. Bahrain's current consumption amounts to only 65 billion cubic feet per year. Until 1970, gas use was limited to supplying the Manama electric power station, the BAPCO refinery and for injection into oil wells to assist extraction. Since March 1971, gas has also been utilized by the ALBA aluminum smelter; ALBA's consump.ion of gas during 1972 was nearly 5 times as large as its consumption during 1971. ALBA is currently the largest single consumer of gas (Table 8.9).

36. In addition to being independent from oil and located within easy reach of sea transport, Bahrain's gas has a low sulphur content. These ad- vantages, together with quantity, provide considerable scope for developing gas-based industries, as well as for developing gas itself as a major export commodity in the form of liquified natural gas (LNG). In both cases., it provides a promising new source of foreign exchange. The Government's present Dolicv is to attract industries to Qenerate emnlovment by providinz gas for industrial use at a low initial charge. 1/

Industry

37. Oil refining in Bahrain goes back to the mid-1930's. In 1936, a vear after commercial nroduction of oil started- a small refining unit was built and subsequently enlarged so that it became able to process a quantity of crude oil three times as large as Bahrain'sR own nroduction. To nrovide additional input to the refinery, a 34 mile pipeline of 12 inch diameter was laid frnm feli Dnmmam fipld on the eantern conQt of ganidi Arabia. The refinery, with a production of about. 235,000 barrels a day, is currently the second laraepQt in t-he Middlp East- (after Abadan in Iran). Since 1963, Arabian oil from the Damman field has provided about 70 percent of the crude input of the refinery (see Table 8.5).

1/ Gas sold to ALBA was 5.3 US cents per 1000 B.t.u. in the first year, increasing by 1 US cent a year to 9.3 US cents per 1000 B.t.u. in the fifth year, and will remain unchanged in subsequent years. 36) The refinery refines a variety of products which can be switched quickly to meet changes in demand. Thus, its output has changed over the years (see Table 8.4). Currently, the bulk of output is fuel oil, followed by diesel oil, aviation fuel and gasoline. Total output has recorded some fluctuations over the years. Output increased sharply to 89 million barrels in 1967, the year the Suez Canal was closed. After a decline of 5 percent in the following year, output rose steadily, reaching a peak of 94 million barrels in 1971. In 1972, however, output dropped again to 87 million barrels, or by about 7 percent. These fluctuations are mostly caused by the world market conditions since about 90 percent of Bahraini refined oil is exported.

39. BAPCO's current employment is about 4,000, or 7 percent of the economically active population. Nearly 90 percent of BAPCO's employees are Bahrainis, with 6 percent British, and the rest are of various nationalities (see Table 8.8). But BAPCO's employment has been declining since the early 1960's.

40. Although oil production in Bahrain began during the thirties, it was not until the 1960's that non-oil industrial projects were established. The small domestic market, low import tariffs, scanty raw materials and lack of skilled labor tended to discourage industrialization.

41. According to the Register of the Commerce Bureau, 95 percent of industrial enterprises in 1970 were owned either individually or in private partnership. About 62 percent of these enterprises were small in size, each employing less than 10 persons. They include farm poultry, dairies, bakeries, paper production, repair shops, building materials, printing and publishing. Larger enterprises were in ship repairing, fish processing, plastics, and manufacturing of food and beverages. Recently available data show that in 1971 non-oil industries employed about 4,000 people or about 7 percent of the ecnnomically active nonulation. Of this total 44 Dercent were non-Bahraini4-

42. Shin repnirina nnd shrimn nroces4ing are among the imnnrtnnt large non-oil industrial enterprises. Ship repairing, operated by a public com- -3~nxy (T1ia Tnv-hrin 'ql-in P niri nc nnd~ Fna,inpprincr Compnyn')- heannr ncon.r~,i nn pany (h Bahrain Ship Repa_ring --- E e _ o in November 1963, providing slipway facilities for ships up to 1,000 tons, and general repair and engineering farilitiec for vuesels of Pupru tUnnage The company's activities have been expanding since 1966. Its employment i from-A 169 pAerso. in 1Q9A to 280 pnnvsnn in 1971 Also, for the same period, the company's turnover rose from BD 534,000 to BD 962,000 (see Ta-ble 8.11). a private company with 60 percent Bahraini interests and 40 percent non- B12ran nLtere4sts-... Irl ' 1w.-ads a fe Cn -1at of 1 r Rm Si.node st-1 b_0 imp JWJa:L,je CompaLny. C3 L.O . * LAJnII..y *co1.L . *_._ . ._ .. -_ -- . 1. trawlers, and uses modern methods in processing the shrimp (storing, cleaning, grad-ing,, freezing, ndA packng) snd hardle&" sbu ,-0 ton of shrmpar- nually. The company's operations have expanded rapidly since its establish- millit meu~~~~inLU I~~~~LJi19067. * LL~~~~~~~b (tal8.0.LLUL1LUV~~~~~~L LLUV1U ±LLCi~~~~~d~~~j~~Uturnoverever, LLULU theDLJ 5theJI~~~~~~~~~ thUOLLLUU~L of ir,LLL chand1968I1.00L.UI1P79 o LU BDDLDIJers mi'Llion in 1970. (Table 8.10). However, the turnover of the company decreased - 9-

LO BD 1.4' million in 1971 and to BD 1.3 million in 1972. I-le decline was cue to the drop in prices in 1971 and in shrimp catch in 1972. The company is an export-oriented enterprise with major markets in tne united States and Japan. Apart from oil, shrimp is about the only export commodity that originates wholly in Bahrain; others are seasonal exports of fruits and vegetables.

44. Several important new enterprises were completed in the last three years, most of them with government participation, including a flour mill, an aluminum atomizing plant, and the aluminum smeiter, the largest industrial enterprise after the refinery. The flour mill (owned S percent by the Bahrain Government, 20 percent by the Kuwait Flour Mill and 72 percent by private interests in Bahrain) is protected by the Government which has banned all imports of flour. It has a capacity of 100 tons per day, to be doubled in the near future. Inputs for the mill are imported from Australia, and most of the flour output is sold in the domestic market, while the wheat bran is exported to Japan. The mill began operation in April 1972. The aluminum atomizing plant, opened on May 1, 1973, is owned by international companies (West German and British) with Bahraini Government participation of 27 percent. The powder aluminum produced is to be exported to West Germany, Japan, and Britain. The present annual capacity of the project is 3,000 tons to be increased to 5,000 tons in the near future.

45. The aluminum smelter, highly capital intensive, is designed to produce 120,000 tons of aluminum ingots per year. Construction began in January 1969 and production started in May 1971. The smelter is owned by Aluminum Bahrain Company (ALBA), incorporated as a company on August 9, 1968 compris- ing seven shareholders, the Government of Bahrain (19 percent) and six international companies which are both aluminum users and brokers. 1/ Bahrain was chosen for the location of the smelter due to the encouragement of the Bahrain government through various facilities and incentives which the Government provides to industries (see paras 48-49), and the availability of natural gas converted easily and cheaply into electric energy, a crucial cost factor in tlhe production of aluminum. At present, the smelter employs 2,300 persons, 85 percent Bahrainis, and this percentage will be increased over the coming years. By October 1972, the smelter had produced a total of 62,075 metric tons valued at BD 14.6 million. Initial capacity of 120,000 tons a year is expected to be reached during 1973.

46. A major project under consideration is the OAPEC dry dock. It was approved by OAPEC in 1972 to be sited in Bahrain. Construction of this proi- ect might begin in early 1974, and commence operations by 1976. It would be equipped to handle tankers of up to 400,000 tons- and emnlov abouit 2J 900 people by 1980. In December, 1973 the OAPEC countries agreed to finance a substantial portion of the cost of the dry dock.

1/ They are British Metal International (17 percent), Kaiser Aluminum Bahrain (17 prcrntt) i GrenPr1 nhle rGrporationn (17 prrcnt), Elentrokonnar (12 percent), Breton Investments (9.5 percent) and Western Metals Corpora- - 10 -

47. The Government's industrial policy is to encourage industries through incentives rather than protective measures. Protective measures. however, were adopted to support a few industrial enternrises in those cases which are not likelv to invite retaliation by neighboring countries (e.g. flour milling). The Government will participate in industrial projects to provide nominal financial support, and to ensure some supervision of a companv's policies and ?aer'ormance.

48. The Government has also provided various incentives to encourage industrial investment in Bahrain. These include exemption of income tax, freedom of repatriation of profits, exemption of raw materials from all custom duties if th'e nroduct is exnorted, and half of customs duties if the nroduct is locally marketed; exemption from custom duties of heavv industrial equipment used for local industrv; supply of natural gas at a very low rate. establishing an in- dustriaL free zone area, etc.

49. The free industrial zone, near Mina Sulman port, consists of about 5 million sqnuare feet of shallow sea area. Land can be leased fnr 25 tn 35 years ona highly favorable terms, provided that it is reclaimed by the tenant. The annual rent nn the reclnimed land is annroximatelu RD 100 per 10,000 square feet during the first five years, to be raised slightly in the following ten years, recnhin9 a maximum annual rate of BD 200Q Other facilities required by industries were also introduced to the area, e.g. roads, electricity, gas, water, seqap anri nother faciliities The deep-water Mina Sulmnn port is near- by. The zone is divided into three parts: an industrial part allocated for light indilictries; a commercial part allocated for storage to reduce the pres- sure on Mina Sulman Port; and the services part (the largest part) mostly for companies which use Bahrann as headquarters for their activities in the G-ulf. A large number of industrial establishments have already been attracted to the ind4ustrial zone. These include shipping and repairing, shrimp p.rocess ing, plastic manufacturing, paper tissues manufacturing, a flour milling and cargo services.

5. The industrial zone, however, at present suffers from a lack of adequate municipal services, as it does not fall within the area of any municipal- 4___Ak1ty A_I;s probl^AtE_m A uneA4s Goenmn cosierto s4 ------o_ tue_a0 X Ly . L I fit I EU L111 'StV V G L L L.t_LOS; C a L J AJI OLL L OLIII PJflL L> UI L LL zone are becoming fire hazards andI unhygienic due to improper dumping of waste. Anoth-er problem involves the reclam.ation land bky Ile ind.4ivid ual tenLant and' ~InI Lt L~ i . JJ~~- LLS. "LI* .~.LLLQLA %_ L ofIA L~LL' LAIL .tL.L V.L UU L LLI d U not the Government, which mav discourage some entrepreneurs.

51. There is scope for expanding industrial activities in Bahrain. Four types of industrles hIave a strong potentiall: (a)\ thoeased on providing services to the oil and the shipping sector: opportunities for further development in shilp repair and ser-vicing, facilities still exist; (b) small- scale industries for import substitution: there are possibilities for manufacturing reinforced bars and other light steel products, using imported steel in connection with the servicing of ships and in building houses. A company was Petahlished in March 1973 ton uindertakp thp mrni,farturp nf thpsp products. Consideration is also being given to establishing a cement/asbestos nlnnt m …n-PPtth- c-hnn inr--o-.c in am!an. forv rnct.-riit-i.n Tn.t-.;ilc; indi. is to carry out studies on this possibility; (c) regional-oriented industries uhich ,my hae god prospects such as printing, pnt f (d) export-oriented industries based on natural gas resources: the abundance of -as opens up cor.niderraIDo1ie opportunities f-r of l4quified atu-ral gas, as well as establishing capital-intensive, export-oriented industries with foreign participatior.. By establishir.g the ALBA, Bahrain. has already ml.de headway in utilizing its natural gas resources but several other opportunities r,,ay 'De still availab'le particu..larly in thLe fi-el.ds of fertLillizers , petro= chemicals, steel, etc.

Water Resources

52. Since 13ahrain's rainfall is scanty, and there are no rivers on the islands, the country relies solely on underground water for domestic use ana irrigation pu.poses. Her underground water flows from three aquifers which con-iect with thne eastern part of the Saudi Arabian mainland. These aquifers, which are of the Eocene age (about 600 million years ago), contain three levels of water, known in Bahrain as the "A", "B", and "C" zones, with average salin- ities of 3,400 P.P.M. 1/ in "A", 2000 P.P.M. in "B", a deeper zone, and 8,000 P.P.M. in "'C", the deepest zone. Water is drawn aimost exciusively from the upper two zones (A and B), particularly in the northern and the northeast peripheral areas of Bahrain.

53. The drilling of wells in the past without any official supervision has resulted in: (i) an excessive number of wells being drilled and consequently a waste ot water; (ii) a rise in the salinity of water ot the "B" zone. Since water in the "B" zone was better than the water in the "A" zone, people concluded that the deeper they drilled the better the water would be. As they drilled deeper in certain areas, they reached the "C" zone. This resulted in the contamination of water in the "B"l zone from the deeper water of the "C" zone. Salinity in "B" zone is also increasing due to the seepage of sea water, particularly in the eastern coast, where the water in the aquifers is close to sea-level. With the passage of time, water is becoming saline as the aquifers out-crop into the sea.

54. On the average annual rate of salinity increase, it is projected by hydrologists that by the year 2000 there will be no drinkable water in Bahrain. In view of this serious situation, the Government established, in 1970, a Water Resources Department attached to the Ministry of Agriculture. In 1972, the Department initiated a program which is expected to last for 2 to 3 years, including provisions that (1) no private individuals are allowed to drill wells; all well-drilling will be conducted by the Department.

1/ Parts per million. - 12 -

2, 1- A-Lexsi.gwelsar to be cement lined to stop --- wate -rmetr ing into them. (3) Those wells already drilled into the "C" zone will be

disconnected from that zone. The progrrm is progr ess t ar. Ian.l - age of 30 wells drilled with an equivalent number of old wells fixed. (4) In 1972, the govern,ment approved a water desalinization plar.t (see para 87).

A-ricu AgriceueJnBhai s0c--_L

_) *, tlv , ] L C E t,aj , .L %J LLULILILLL A.L LIIILVuL L6.LL%c . ILe bs'i c ULU dL .- culture and fisheries in the country's GNP amounts to about 2 percent. It currently employs about 5 percent of the econom ically active population. Its output is failing to meet local demand, and consequently most of the country's foodstuffs are imported. Although agriculture (including fisheries) grew by 14 percent annually over the years 1970-72, their share in the GNP remained much the same.

56. The area under cultivation in Bahrain is about 15,000 acres or about 10 percent of the land area of the country. It is concentrated along the north and northwest coasts of Bahrain, north Sitra, and in Nabi Salih islands. About two-thirds of this area are planted with date palms and the remainder with vegetables, fruit trees and forage crops. Along with other agricultural products, Bahrain is also a net importer of dates because its production is lower than domestic demand.

57. Agriculture in Bahrain suffers from a host of problems. The most serious one is the diminishing underground water supply and the increase in its salinity, previously mentioned. With the existing water supply, FAO estimates that only 800 additional acres (5 percent of the area under cultivation) can be brought under cultivation. The Government is coordinating its efforts with Saudi Arabia to conserve underground water resources, but with the gradual rise in the salinity of the water and inadequate land-drainage, the sub-soil water in some areas has been rising to form a salty crust on the surface. This is killing palm trees and other plants, and, consequently, farmers are deserting the land in certain parts of the country.

58. The Government maintains an experimental farm on the west coast of Bahrain Island near Budaiya village. The Agriculture Department is situated in the middle of the experimental farm, and is organized into 8 sections: vegetables, fruits, ornamental plants, livestock and poultry, irrigation and drainage, plant production, marketing and economics, and veterinary section.

59. In 1966, the Department of Agriculture introduced incentive measures, including input subsidies, improved marketing and taxation. It also initiated a Cooperative Farm Program. If a farm is selected to join the program, one or two acres of it are set aside for cooperative work. It receives free ploughing, quality seeds, fertilizers, spraying and technical advice. In 1967, the Department of Agriculture made an agreement with BAPCO whereby cooperative farmers supply the company's requirements for fresh vegetables when available. The company agreed to provide the cooperative farmers with a shop to be used for sale of farm produce. As a result of this project. the number of cooperative farmers increased from 15 in 1966 to 40 in 1969. - 13 -

60e As the productivity of bothlanA A. ag l 4laborIils .lo, and since water is scarce and the labor force is dwindling, efforts at devel- opr.ent shOuld probal- concentrate on nvALO Umc-lC.Lzed ag-r-iculture. The Department of Agriculture currently operates all agricultural tractors and .Lotor spraLyers, providing pJLoughing .adLU .Lda v-l-lin or La Lt.LL-- basis. It may be desirable to increase their number and the services they provide.

LI TL,IEI rq'eacopeh-'- us. oLOrtS to dUeve'lop agriculture ini Bahrain requIre cmprehesiveIa survey of underground water, land fertility, land tenure system, marketing arrangements, agricultural practices, availability or agricuiturai credits, etc. The FAQ is currently making a survey of land and water resources, the results of which are expected to be available in 1974.

62. There are practically no statistics on livestock. According to the FAQ, there are about 5,000 head of cattle, 10,000 sheep, 500 camels and 40,000 poultry (see Table 7.2). Domestic production is tar below domestic demand, and so most of Bahrain's demand for meat is satisfied through imports. Live animals are imported by sea mainly from Australia.

63. Animal production in Bahrain, particularly poultry, is strongly influenced by the temperature and humidity which are both high in the summer, causing usually a sharp drop in poultry production. A program for improving the quality of sheep, goats and cattle has been initiated by the Department of Agriculture. It involves the use of artificial insemination to upgrade the local beef and dairy herds, supplemented by imports of selected foreign breeds. Efforts are also underway to improve and increase the production of poultry and eggs. In view of the relatively high domestic demand for meat and dairy products, private capital may be attracted to these industries.

Fishing

64. Before the discovery of oil, fishing industry was a major occupation in Bahrain. At present, fishing employs only 2 percent of the country's active population. Methods are traditional, such as fish traps made out of date branches, or circular nets or drifters. The current local catch is failing to meet domestic demand, and the deficit is being made up by imports from Gulf countries. Mtarketing facilities are primitive, and consequently there are large price fluctuations of fish in the local markets.

65. Nevertheless, Bahrain's adjacent waters reportedly abound with a large variety of fish. Very little research has been done in the Gulf to establish the viability of a commercial fishing industry. The Government, with technical assistance from the British Ministry of Overseas Development, has just initiated a research project, while the UNDP is trying to coordinate the study of all fish wealth in the Gulf to avoid over-fishing in the area.

66. Bahrain. however, has made considerable progress in the exploitation of its shrimp resources. A large amount of the shrimp caught is exported, mostly to the United States. Europe and Japan, making shrimp one - 14 - of -h 2rgest exnrt itsms. Since 1967; the Bahrain Fishing Company (see para. 43) has been exploiting shrimp by using modern methods in processing the shrimp. The _ompanv1'5 cuirrpnt catch is about 3,000 tons ef chrimp annually. There is also a substantial local catch amounting to about 7,000 ton.s a NYer Fu rther rdevlovp,ment nf chrimn resouirrc isz difficult due= to technical reasons, as shrimp population in Bahrain water is safeguarded by the rocky seabed, whirh a1llow-.s only 15 percrnt nf the shrimp to be caught eacn year.

Tour ism

67. Tourism is becoming increasingly important. The country's net for- ei-gn exchange earnings from travel h-_ grown r l rc.t years. They increased from BD 1.7 million in 1968 to BD 3.0 million in 1971, thus nearly doubling.

If* Bh-rain'is touri4st attract-ions 'Pall into -w-ategories.--- tour- 00., l)iclL d.L_LJ LL.LL -L~ ~ £ .L. LL %_. L.~ CLrI1£01 LUUL?- ists from neighboring countries who prefer luxury hotels with alcoholic re- iresh melnLEnt, enL tertain.ment anAU r.,odern lif B&hrarLLC,LL pvL a LLs acti-ve holiday spot. By 1972, there were four first class hotels with over 750 beds. Currentl-y, there are pLCIL f-or bu lld Lthre more luxury hotels having a total of 850 bedrooms, one of which would be a 400-bedroom hotel to be ijuilt by Hilton L iLote'ls, and anothL'Ler a 30'u-bUeduroou LhLoteL to Uwe b7u i.l t by the Government, at a cost of BD 3 million.

69. Bahrain also caters to tourists from further afield who can be attracted to take longer stop-overs. in addition to her location on international air routes 1/, good hotels and reasonable prices, Bahrain offers at- tractions such as natural beauty, camel and horse racing, falconing, iocal artifacts and archaeological remains (represented by the famous discovery of about 100,000 tumuli that belonged to the Sumerians (3000 B.C.), wno called Bahrain the land of immortality and used it as a burial spot). Bahrain also has rich Islamic remains. The number of passengers in transit increased from about 75,000 in 1967 to about 392,000 in 1972. It may be possible to include Bahrain in package tours between the East (Australia, New Zealand, Japan, etc.) and the West (Europe and the United Kingdom).

70. Although tourism has not been fully exploited, there is a growing realization of its importance to the economy. Since 1969, both Government agencies and private enterprises have been active in developing tourism. A tourist survey was undertaken in October 1969, by the International Associa- tion of Travel Organizations. Also, in that year the Government provided loans to a number of retired boat builders to help them increase their output of Bahrain boat models which were quite popular among the tourists. In August 1972, the Government announced plans for building a hotel (see para. 68). The Government is also studying plans to make Um Al-Nasan island to the west of Bahrain island a tourist resort.

1/ Bahrain is also a crew-change point for many long-distance international flights. - 15 -

Transport

71. The transport (and communication) sector constitutes about 3 percent of the GNP. It recorded a rapid growth, amounting to 70 percent annually in the years 1970-72. This growth was largely caused by the growing. role of Bahrain as a travel and communication center.

Air Transport

72. Owing to her location in the Gulf, Bahrain has become a major stopping point for air services between the Far East (including Australia), and the Middle East and Europe. Activities in Bahrain airport have been growing at remarkable pace. The number of civil aircraft increased from nearly 16,000 in 1967 to about 19,000 in 1972, and the number of passengers in transit increased fivefold during the same period (Table 8.17).

73. To keep pace with the continuous increase in air traffic, airport facilities on 1luharraq island have been expanded many times over the years. The last expansion was accomplished in December 1971, including a new terminal specifically designed for handling jumbo jets; the terminal serviced the Anglo-Frenc; Supersonic Concord during her tour in the Middle East. Moreover, the terminal's catering and refuelling facilities provide a rapid turn-around for the largest aircraft in service today. Finally, the new transit and departure lounge contains seating and refreshment facilities for 650 passengers.

74. Bahrain airDort is the headquarters of the Gulf Aviation ComDanv Limited, owned by government and private interests from Bahrain, Qatar, Abu Dhabi and Oman; with narticination by BOAC. Although this company was established to provide air services within the Gulf Region, it now also flies to Eurone and India running an average of ten services a day to the maior cities of the Gulf as well as to Karachi, Bombay, Beirut, and London. It has revolu- tionized travP1 in the Giilf_ making the long talished sa transnort for 7------ --.-, - C ------passengers a thing of the past. With the popularity of travel in the Gulf, it is now very common that merchants from Bahrain leave for Q(atar or Sauidi Arabia in the morning and return in the evening of the same day. Oil tech- nicians can spend their week-ends with friends in another oil camp.

Road Trnnort

75.. BahrainQ's three mnor islands (Bnhran, Miharraqn And Si tr2) are well covered by roads, most of them in excellent condition. A large portion of the main rodsc in the country nnd most of the city streets are now dual highways. Four main roads originate in the capital, Manama. One leaves the capita-l to the southeast to Mlna Sul.mnn nort. The second road, the longest dual highway, leads southwest to Rifaa al Gharbi where it continues southward to A,.nl4 towr -A th- -not Jebal ad-Dukhar and the oil field todisapar the desert. The third road leaves westward to the village of Budaiya, and then bears south to Zellaq village. The fourth major road leaves the capital to the north across a causeway to Muharraq island to the international airport, and then continues to 1"idd (see Map). '6. There has been rapid growth in the number of vehicles in Bahrain, increasing froEm 9,400 in 1966 to 20,000 iii 1972 (see Table 8.13). As a result, traffic congestion and road accidents have become a major problem. Various schemes have been imf-plemented to ease the situation. A public transport fleet of 120 buses, covering most of the country, was introduced in mid-1971. A major land reclamation scheme to the north and east of Manama to provide ringroads around the capital has been implemented. Also, in March 19737 a 370-foot bridge was opened to complete the 2,000 yard dual causeway lirking Manama and Muharraq island, to ease traffic congestion on the causeway which reached 20,000 cars a day. Moreover, work is underway to build a road to link Sitra island with the capital via Nabi Salih island, and in May 1973, international tenders were invited for the construction of a bridge joining the two ends of the causeway. The causeway will pass near Nabi Salih island; a bridge in the mlddle will still enable boats to use Sitra Creek.

77. To reduce transport congestion and improve urban amenities, Isa Town, which is one of the largest housing projects in the Gulf, covering an area of 2.5 square miles, represents a planned attempt at urban dispersal. Construction of the town began in 1963 and its first stage was inaugurated in November 1968. In this stage, the town provided 2,500 homes for 15,000 people from low, average and high income groups, with various service facilities, including schools, clinics and sports. In its final stage, it is expected to accommodate 35,000 people. The Government has financed the total cost of the project, expecting to recover from the householders the cost of construction over a period of 20 years.

78. Travel throughout the three main islands of Bahrain is easy, but communications with other parts of the country are difficult, and visits to them are usually made by private arrangements with launch or dhow owners. Also, visits to certain small islands require official permission. There are no railways in Bahrain.

Sea Transport

79. The geographic position of Bahrain, together with potable artisian water qualified the island for many centuries as the center for entrepot trade in the Gulf. But Bahrain has no natural harbors, and consequently, larger ships used to lighter. In the early 1950's, it became evident that transshipment was inadequate for the growing volume of trade. Also, other Gulf States were improving their own ports. Therefore, the Government built a modern port, Mina Sulman. in 1961. With a depth of 30 feet, it provides berths for six ocean- going vessels, with modern tugs, cargo handling equipment and bunkering facilities.

80. however, the number of ships calling at Mlina Sulman, and their size, continued to grow (Tables 3.15 and 8.16). Consequently, the Government decided to expand Dort facilities there or elsewhere. and the World Bank has been approached for possible financing. - 17 -

81. Bahrain and Oatar have been discussing the possibility of setting up a joint shipping company. The company will be specialized in transport of dry careo; but its activities may be exnanded later on to inelude oil transport. Economic commmittees in the two countries have been formed to work out the detnils of the uent,ire= A fina1 agreement is experted tn he reached by the end of 1973.

Telecommunications

82. Bahrain has the most efficient telephone service in the Middle East, with services available i. eve4-, p-rt of the cnt- ,, opekrat by Cabln Wireless, Limited, which is also responsible for Bahrain's international tele- com--4 r,cati ons .

83. Tegoigrol e of 1ahrain asasevcecnter a..d theco.eun LLL~ LJ~W 4-'5Lr CJ.. 5. "AaLL L a.L.LL a.s~ a. aL .V .L L .. 4- a.LU. L L= _ . C-%4 6 ~ U=IL L growth in demand for international telecommunications services led to the in-

vs :_:ta1]a-on 4 ___.10- o_ 4mpr : A Ac-~e_ '-e-wee _-r- an ~1_ev .11@A 4 -_ _1 I ..L .L U .5 j L U Lu A..J.J.J.L.L0 Li L.WwsL SJa.i.Au L a.Lull ao W=.L.J as the opening ih the same year of an earth satellite station, the first of its Lk-nd Ln thULe YIi dLLUU±eEast ar.AU Afric a. I.t proviLdUes quick telephone, teLex and cable comrunications with virtually every part of the world.

84. The opening of the satellite station in 1969 resulted in a sharp rLbe in1 telecommunicalion 5ervices . Telex (paLU minutes) WhLChi rose from 17.7 thousand in 1966 to 48.2 thousand in 1968, prior to opening the station, increased to 215.8 thousand in 1971. Radio Telepnone (paid minutes) whicn were 136.2 thousand in 1966 and 173.6 thousand in 1968, increased to 643.5 thousand in 1971 (Table 8.19).

Power

85. Electricity was introduced in Bahrain in 1929 when the Manama Power Station was opened to supply electricity to Manama as well as Muharraq. The rest of the country did not have electricity until 1953, when it was decided that electricity should be made available to all the people of Bahrain. A new gas powered turbine with a capacity of 8 megawatts was built at Mahuz (Manama), with distribution to the three major islands; one high tension cable went through Muharraq island, terminating at Hidd; a second skirted the north coast of Bahrain to Budaiya; and a third supplied the center part of Bahrain and Sitra. As the numdber of villages receiving electricity continued to grow, another high tension line was constructed on the west coast of Bahrain between Budaiya and Zellaq to provide electricity to the numerous villages there. Be- tween 1953 and 1962, generation increased from 9.6 million kWh to 86 million kWh (see Table 8.20).

86. A BD 3 million expansion scheme was instituted in 1965, to increase the capacity of Mahuz Power Station. The relatively low price of electricity, the continuing rise in the standard of living, (including increasing use of air-conditioning), and the growth of domestic industries generated further demand on electricity. Between 1962 and 1972, the electricity generated grew from 86 million kWh to 283 million kWh, or 13 percent per year. In 1972, installed capacity (apart from that of ALBA) reached 92 megawatts (Table 8.20). - 18 -

87. Due to this ranid growth. work began in 1972 to construet a new major electric power project (Sitra). It is a three-stage project, expected to be ^-iniqhPd by 19AS- and cost BD 30 million. The nro1ert in-luidp a de- salination plant. The first stage expected to be finished in late 1975, includes the 1nqtan1inor Of two generating plants earh of a capacity of 30 megawatts, and each with a daily production of 2.5 million gallons of distilled water.'he second stage, endina in, 1976, include-s the construct40n of on.e generat:ing plant of a capacity of 30 megawatts and with a daily production of 5 million gallons of disoril1ed water, The thIrd stage, end-ng in 1978, is similar to that of the second stage. Lence, bv 1978, the capacity of Sitra J'ower Station -r-ill- reach, 129_ -eg-aw3tts an 151, 1 4--lr gallon of dlistililed water dailv. The major source of financing for the first stage of th-is proj-ect is the Kuvwnit Fund.

uruan Qi-Sp

o o ~~D -ira, t -n1 _s aE ron-ae 'o ler4 sweet__ Q LJdliL .D W -X VLY r. 0) aL , p resen'- 6 uL.UWL.L L lLL bWi t water supplies, whether for agricultural, industrial or domestic use. Inhab- itants for a long time depended on wells and springs which were usually mea- ger, and in certain cases were unhygienic.

89. Access to piped water, however, started as early as the mid-1940's.

I 11r _ s -- . TV -A_ _ A -A21-_.cA_ M___ ini 1 Lllt: rtahiei7La dLLL .UPJJ.Ly ) .iIC1:1 WLO UpeLLtU, UPP.yLYig WdULLe £LOUI d central system. Ten years later, in 1958, Muharraq and subsequently Rifaa, Hidd and numerous otheI villages, received central water supply systems. Currently, about 90 percent of the urban population in Bahrain have access to piped water.

90. The continuing decline in the amount or underground water and its increased salinity led the Government, in 1972, to approve a scheme for a desalinization plant. (See para. 87). Tne distilled water will be used to reduce the salinity of underground water from the plant at Sitra to a mixing plant located south of nlina Sulman Port, where it will be mixed with underground water before distribution.

91. Associated with water sunply is the sewerage system for water and waste disposal, which is increasingly inadequate, and constitutes a health hazard. Cholera outbreaks have occurred in recent years and have been traced to bad sewerage disposal system. The UNDP is financing a study, with the WHO as the executing agency, of the sewerage sector in Bahrain. The World Bank has been approached for possible financing of a sewerage project.

IV. RECENT PERFOR24ANCE

92. Bahrain has a highly open economy where most economic activities are concentrated in the external sector, which constitutes about 75 percent of the CDP, and provides 90 percent of Government revenues. - 19 -

External Sector

93. Bahrain has continued to play its traditional role as an entrepot in the Gulf. Currently, nearly one-third of its imports are re-exported. Trade is still the second source of revenue after oil, amounting to about 10 percent of the GNP. In 1971 trade registered about 7 percent growth over the previous year, but in 1972, growth accelerated to about 9 percent owing to a sharp rise in re-exports to neighboring countries.

94. No official statistics of Bahrain's balance of payments are available. However, the IMF has provided an estimate for the years 1968-72, (Table 3.1) 1/. The IMF estimates of the invisible entries (services, transfer, and capital movements) are based on incomplete information and consequently are subject to a wide margin of error.

Summary of Balance of Payments 1968-71

(In million Bahrain Dinars)

1968 1969 1970 1971

Exports 100.0 106.4 113.3 116.9

Imports 91.9 99.5 125.5 152.1

Trade balance 8.1 6.9 -12.2 -35.2

Services. transfers and non- monetary capital (net) -9.1 -4.6 18.4 46.9

Changes in reserves (- increase) 1.0 -2.3 -6.2 -11.7

Source: Table 3.1

95. Over the past few years, the structure of Bahrain's balance of payments has changed. A trade surplus of BD 8.1 million in 1968 became a deficit of BD 12.2 million in 1970 and of BD 35.2 million in 1971. This was caused mainly by the substantial increase in imports, beginning in 1970, by ALBA for the construction of its smelter. However, as ALBA's imports were financed mainly by foreign investment, they had no impact on the overall balance of payments position. As a result, the balance of payments have continued to record a steadily rising surplus since 1969. The surplus increased from BD 2.3 million in 1969 to BD 11.7 million in 1971.

1/ The IMF figures which were expressed in SDR's were converted into BD's. The rate of exchange used is BD1 = SDR 2.1 (see Table 3.1). - 20 -

9U. Bnhrain'is foreign trade stat-ist-ics -lo not Aistinguish bUetween exports ~~ * ~ L 01 - I.~ - ~~ ,-0 -" ~) U..L. LJ.LL6±L ~W~1~'PLL and re--exports, and do not, for example, reflect ALBA's substantial exports of

lk-LIULULIL iLngULot WLLhich LJbeganL JL Y I A.Lt Lis U.tu LLot posslible to Uetermlne the share of local production in Bahrain's total exports. As is clear from Table 3.3, DraiLailb ILUL-oiL exports were ouni.ateLd by UlauLactured goods. Over the years, non-oil exports grew slowly until 1972 when they recorded 33 per- cenLt increase over 1971. IlTat was mostly caused by snarp rise in exports of manufactured goods and beverages and tobacco.

97. About 90 percent of Bahrain's non-oil exports (and re-exports) are destined to the Gulf region countries, with Saudi Arabia taking slightly more than haLlf, due to her use of Bahrain as an entrepot center for the import needs of the eastern part of the country.

98. Tne rise in the physical volume of refined oil exports since 1968 is mostly related to the processing of imported crude, as Bahrain's own production of crude oil has remained unchanged during i968-i1, and dropped in 1972. (See Table 8.5).

99. Bahrain's imports rose 15 percent per annum until 1969, and by 38 percent and 31 percent in the years 1970 and 1971 respectively, due mainly to increased imports of manufactured goods (including machinery and transport equipment), whose share in total import value increased from 67 percent in 1967 to 81 percent in 1971. Although imports of food items have been rising, their relative share in total import value has been declining, dropping from 23 percent in 1967 to 13 percent in 1971. Crude oil imports for refining have been progressively rising, increasing from BD 39.9 million in 1968 to BD 47.1 million in 1971.

100. The United Kingdom has maintained her position as the leading supplier of Bahrain's imports, and accounted for about 30 percent of import value in 1971. The second largest supplier was Japan with 12 percent, followed closely by the United States, which in 1971 registered a major gain, increasing from BD 5.8 million in 1970 to BD 12.8 million in 1971; this was related to the increase in imports of machinery and equipment for ALBA. The People's Republic of China, the fourth major supplier of Bahrain's imports, has improved her position remarkably since 1967. China's relatively less expen- sive exports of primary and manufacture products boosted their demand in Bahrain. Arab and Gulf countries supply only 5 percent of Bahrain's imports. Their share has not been significantly higher in recent years.

Foreign Assets

101. Bahrain's international reserves are held by the Bahrain Currency Board (BCB) as well as the Government. According to Table 6.5, the BCB's foreign assets have been steadily rising, while those of the Government dis- played erratic movements. Fluctuations in the latter are mostly related to the shift of Government reserves between domestic and foreign banks. as well as to changes in oil revenue. Net official reserves were BD 31.7 million in 1972. In addition, commercial banks' net foreign assets in December 1972 amounted to BD 35.8 million. Total net foreign reserves reached a level of - 21 -

BD 67.5 million, or the equivalent of 8 months' imports at the 1971 level. Foreign liabilities consist of commercial banks' liabilities, and the BCB liabilities to cover notes in circulation outside Bahrain, mostly in Abu Dhabi.

External Aid

102. Bahrain's experience with external assistance is new. Its external public debt is negligible, confined to only three loans recently received from the Kuwait Fund, totalling KD 2 million. These have helped finance the aluminum smelter (KD 1 million), the flour mill and the Manama Muharraq Causeway (KD 500,000 each). Service payments for these loans will peak in 1974, giving an estimated debt service ratio of 0.2 percent. The Kuwait Fund is currently considering a partial financing of the Sitra Electric Power and Water Desalina- tion Station amounting to KD 7.4 million.

Internal Finance

103. The Government's financial operations are reflected in three accounts: the con3olidated fund account, the reserve fund account, and the foreign assets account. The consolidated fund includes the fiscal accounts of the central government as well as some extra-budgetary operations, which comprise mostly loans made by the central government to two autonomous entities, the Electricity Directorate and the Port and Customs Directorate to meet part of their capital expenditures. Independent of the consolidated fund are the accounts of the following autonomous entities: the retire- ment and provident funds, the Electricity Directorage, Port Directorate, Municipalities, Waqf and Minors' Departments. The reserve fund account is extra-budgetary, with receipts derived from balances on transactions recorded in the consolidated fund account; interest on Government deposits with local banks, and dividends from the Government's equity participation in enterprises. Part of these receints have been used to nrovide loans to larga nrivate ventures (e.g. cwo loans to ALBA amounting to BD 7.8 million), as well as in financing large government deuenopment projects (e.g. TIa tnwn and the airnort!,. The foreign assets account records movements in the Government's foreign ex- chanee holdings. No nublished data are available on movements in the reserve fund account or transactions in the foreign assets account.

104. Budgetary preparation and implementation in Bahrain are not governed bv qtatutnryv 'odner Thsev arp hnnpel n-n nd hnr inRtriwtinns from thp Ministrv of Finance and National Economy to the various ministries and departments to surrender revenu_es thev c1lTrt asc well as to ubhmit estimAtes for their c-ur- rent and non-current expenditures. The Ministry reviews expenditure requests on the basis of exnected revenue. The hudaet is then submitted to the Cabinet for approval.

105. Government revenue increased from BD 18.7 in 1968 to BD 32.8 in 1972, or by 75 percent This rise is mostly related to the rise in oil receipts which showed an increase of 43 percent during the same period. The

incre,asae 4 o-n-41-- meceiptsa e pt __ LO p--rtly _kJI.*L, Adu t-o the recenrt increase..t, a. in princs of - 22 -

oil fo:Llowing the Tehran and Geneva agreements 1/, and also due to the increase in Bahrain's share in revenue from the Abu Sa'afa offshore oil field due to the increase in its production. Other revenues, particularly from customs receipl:s, also recorded a steady rise as a result of a rise in the volume of trade (Table 5.2).

-:06. Oil revenues account for about 80 percent of Government revenues. They are derived from four sources: firstly, there is Bahrain's 12.5 percent royalty based on the posted price of crude oil extracted by BAPCO and refined on the island. Secondly, there has been a 50 percent tax (raised to 55 percent following 1971 Tehran agreement) on the profit from such refining. Ac- cording to a recent amendment, this amount shall in no case be less than 55 percent: of the profit that would have been realized if BAPCO had sold the crude oil on the world market instead of refining it. Thirdly. there is a small transit charge, 5 US cents a barrel, on the crude oil piped from Saudi Arabia to be processed in the Bahrain refinery. Fourthly, there is the revenue from Abu Sa'afa offshore oil which Bahrain shares equally with Saudi Arabia. It consists of a royalty of 12.5 percent on the posted price, and a tax of 55 percent on the profit.

107. Current expenditures, which account for about 79 percent of total Governmtent expenditures, increased steadily over the years (see Table 5.3). rising from BD 15.1 million in 1965 to BD 26.1 million in 1972. Expenditures of the Hlead of State average about 25 percent of total current expenditures. This represents the Amir's share (one third) of royalty and income tax paid by BAPCO for Bahrain's onshore oil output only. Expenditures on education- which account for about 25 percent of current expenditures, continued to rise steadily. About 15 percent of current expenditures went to health in the years 1968-71. Although health expenditures continued rising in absolute terms, thev were surpassed in 1969 bv exDenditures on defense and securitvy as the country prepared for independence.

108. Available figures of public capital expenditures comprise those of the cPntra1 government and of the autonnmous public bodies represented by the Electricity Directorate (see Table 5.5). Up to 1968, most public

1/ The Tehran Agreement was a five-year accord between 22 international oil companies and the governments of six oil-producing countries on the Gulf that came into effect on February 15, 1971. The main provisions of the Agreement are: stabilizing the income tax rate for the oil companies at 55 percent, an immediate increase in the posted prices of 35 U.S. cents per barrel and a schedule of further increases in the posted prices over the period of the Agreement. The Geneva Accord of January 20, 1972 increased oil posted prices at oil export terminals in the Gulf and the eastern part of the Mediterranean by 8.49 percent to compensate exporting countries for the decrease in the purchasing power of oil receipts arising from the depreciation of the U.S. dollar since August 1971. - 23 -

capital expenditures went to the construction of Isa Town. Apart from capital expenditures in electricity, capital expenditures in the "other" category were mostly for extensions in the Water Supply Directorate up to the end of 1970.

109. In the years 1966-69, public capital expenditures were in the order of BD 3.0 million a year. In the years 1970 and 1971, there was a large increase in capital expenditures owing to the work on the new airport, which was completed in early 1972. The sharp increase in capital expenditures in the "other" category after 1971 went mostly to ongoing or recently completed projects such as the Muharraq Causeway Bridge (at a cost of BD 0.9 million), the Government Housing Project (BD 0.8 million), Salmanya Medical Center (BD 1.3 million); see Table 5.6. Also, there are several large development projects in the pipeline, some of them urgent (sewerage and water supply, Mina Salman Port and Sitra Power), and work is already under way for their implementation.

110. Nearly all public capital expenditures are for infrastructural projects. Public capital expenditures in the productive sectors are small (e.g. experimental stations and surveys in agriculture and fisheries). although the Government has participated in three recently established industries: ALBA. Flour Mill, and Bahrain Atomizers International.

111. Lack of data, particularly on extra-budgetary operations, makes it difficult to give a consolidated picture of fiscal trends in Bahrain. There are unrecorded extra-budgetary operations of which only net lending by the Government to the Autonomous Public Bodies could be identified. The rest were calculated as a residual (see Table 5.1). Net lending as an extra bude- etary operation recorded a substantial rise in 1971. This was due largely to the extension of twn medium term (five-year) loans to ALBA. Prior to 1971; most government loans were made to the Electricity Directorate to meet part of itq cnaital expnendittire. The nvprall budgetarrv no8ition shnwed a surnlus in the years 1968 and 1969, but since then small deficits were recorded due to the sharp rise in both currer.t and cappital eMenditures. The defnict has been financed mostly from borrowing from the banking system.

112. Efforts to mobilize revenues from non-oil activities suffer from constraints it was estimated that n tax of 10 neFrent ni the unAtie nf agricultural products, fish and shrimp catch would increase budgetary receipts by only two-thirdsof 1 percent, assuming that th4i tanv could he flly enfnrced and disregarding costs of collection. A payroll tax, or personal income tax might inducea foreigrn labor (at- "vacant sbouit tT?%to-thirds of Bah-ra-ins laboer force) to seek employment in neighboring countries, or to return home. Tax- oAT.RA a taDYOO 'hr%14rin%, 4ndiiatv4xxa… ~~~ta \v wfw4irh ..-...hen, '.---- 9rL-%vnn*--- a oatn"4f% fvrm ol1 may consider a payroll tax in violation of the tax-holiday. Taxing industry m_ay -l-sodiscourage rneeded foreign investmnent. WM."rhai non the t4me ,ay not be far off when a personal income taxes may have to be seriously considered. - 24 -

-1 r '. Other sources of revenue are postal, water and electricity charges. Post office expenditures exceeded receipts by nearly BD 27,000 in 1969. Con- sequentlv, postal charges were increased in November 1969. Currently, postal charges are equivalent to those charged in the neighboring countries. Water charges are very low, covering less than one-half the current expenses. An increase in water rates may be possible, both to induce more care in the use of water, and to yield added revenue. Electricity charges in Bahrain at present cover current expenditures, but not depreciation; some customers receive free electricity and others pay very low rates. Consideration could be given to some increase in these rates.

114. Apart from a few imported items (e.g. alcoholic drinks, cigarettes, etc.), customs duties on imports range from 5 to 10 percent. In 1969, customs duties on alcoholic drinks were raised to 50 percent (from 35 percent) and those on cigarettes were lowered to 15 percent (from 35 percent) to counter smuggling. A higher general rate is feasible particularly on consumer goods which account for over one-half of total imports. Customs duties on industrial raw materials and equipment are probably not currently feasible, as the Government is trying to attract investment to the non-oil industries. At present, the Government provides total exemption from customs duties on all production goods imported by non-oil industries.

115. A revenue source of important potential is royalties, taxes, or profit sharing from the use of natural gas. At present only a small part of this gas is used by ALBA. The Government will obtain, indirectly, some revenue from Ras through its 19 percent equity interest in the ALBA; in 1980 ALBA will start paying a small royalty of about one-half US cent per pound of aluminum produced. ALBA's royalty on natural gas seems small and its exemption period is long. Efforts to increase the royalty and to shorten the exemption period mav be desirable. This. however. mav run counter to the Gov- ernment policy to provide incentives to industries. In its efforts to raise more domestin revenues, the Government in 1972 introduced a charge on oil tankers which use Bahrain's ports; which is expected to yield BD 380,000 during 1973. Revenuie from exnloitation of gas (for domestic usie and exports) may be substantial in the long run.

116. Available data on private capital expenditures are fragmentary. Capital exPond4tivrea by ATRA were BD %6 m-llon im to the end of 1Q71 RBD 14 million in 1972 and expected to be BD 4 million in 1973. Capital expenditures of the Flour M411 wre BD 1.A mill4on tin to ?Numhbr 1972. Gna4tal investments of the Fishing Company and the Ship Repairing and Engineering Company were shown. in Tables 8.10 and 8.11. Their investmeni t rcmb4ned in 1971 wTas about BD 172,000. The lack of complete data on private investment makes it difficult to provide a comprehensive-piture, but 4t 4i ,4eeidnt that total investment has increased substantially. - 25 -

Money and Banking

117. The Bahrain dinar, which was also adopted as the main currency in circulation in Abu Dhabi in June 1966, is issued by the BCB, created in 1964 to issue and redeem currency, and is fully backed by a reserve fund consisting of gold, sterling assets and currencies convertible into gold or sterling. Any increase in the assets of the currency reserve fund above 110 percent of currency issued is paid to the Government. The BCB manages the currency reserves, but apart from collecting commercial banking statistics, it does not perform central bankinR functions. Government domestic deposits are mostly held with the Chartered Bank and the Bank of Bahrain.

118. The gold holdings of the BCB have remained unchanged at BD 4 million since 1967 (see Table 6.4). Its foreign assets, however, increased from BD 13.5 million in December 1967 to BD 25.9 million in December 1971, doubling in four years, with a rapid increase in the share of treasury bills in the composition of the BCB's foreign assets.

119. The decision of the Government of United Arab Emirates to issue its own currency will result in the withdrawal of the Bahrain dinar from circulation in the Emirates, and a consequent equal drop in both liabilities and assets of the BCB as Bahrain dinars are redeemed.

120. There are 12 commercial hanks in Bahrain. Chartered (formerly East- ern), British Bank of the Middle East, Chase Manhattan Bank, Bank of Bahrain, Rafidain, Bank MpllH lb,in BRank, First- Natinnal, 1nited- B.ank of BRahrain and Kuwait, Arab Bank, and Bank of Cairo. Out of twelve banks, eight have been estabhlished s4nr the hbinning of 1969, and fniir since March 1971. All banks in Bahrain are expatriate branches of foreign banks with the exception of the Bank of Bahrain, which is o.-ed by Brain inteDsts-,4 and the Bank of Bahrain and Kuwait, which is owned by Bahrain and Kuwait interests. Although foreign ba.nks must acquire a license from the Am-ir, there are at the present no reg- ulations covering banking activities in the country.

121. The most recent institutional development is the decision to re- place th1e BCB b amonetary arency, ,.ti more cer.tra1 ankn4rg functtions Tn April 1973, an IMF mission visited Babrain to assist in drafting a statute for such an agency, expected to co m.ence operation by late 1973.

J.2J L0T OOasstsO SJA. *LVL- %..C.i. JUCL - banLLksL LLL UiLiLLO_L Sa - ing rapidly, from BD 35.8 million in 1967 to BD 108.2 million in 1972 (Table 6.6)r,I Foreign assets cor.tir.ued to be the largest itemn. As- -erc,.ta--- '. /J * . IS W 4.5LrL aooc L. L A .LLLLL LSk..J V~ L*- -OS I. .1 L~M no a_D J. total assets they were 58 percent in December 1967 and 43 percent in Decem- bVer 19-72, the declir.e reflect-ing an ir.crease in domaestic ir.vestment opportun= U~J . / . L.LI u L.L± A . ~LJ. LJ..L-L i .L.A.. .L 'JJA U .~L.A £&V_ #-IUOL ities. Credit to the private sector as a percentage of total assets increased f'ro,u 34 percent i1n 1U967 to 49 percentL LnZ 1972. ±Lab.LiLti, ofL Lcurse, rJose correspondingly. Demand deposits increased from BD 15.7 million in 1967 to

D 4 /7.3 mIL.Lo1n1i 1971 IUIL nIdI Lo DI 3.4I 11 In7.I .LIU Udposits.LL LLL atSdU uy nearly 4 times between 1967 and 1972. - 26 -

123. Banks in Bahrain offer comprehensive financial services, including access to medium-term credit for a maximum of ten years from overseas affiliates or correspondents. Thus, financing for establishing or expanding private enterprise is not a major problem in Bahrain. As Table 6.7 shows, although trade claimed the largest part of the total bank credit amounting to 35 percent in 1971, manufacturing received 31 percent. Credit outstanding to manufacturing, construction and transport was 52 percent and 48 percent o'f total bank credit in 1970 and 1971, respectively.

Monetary Developments

124. The BCB publishes figures on total currency in circulation in both BahrairL and Abu Dhabi; no separate statistics are available on the currency in circulation in Bahrain alone. The BCB, however, estimates that about 60 percent of the total currency in circulation is in Bahrain. Using this estimate, it appears that during the period 1968-70, the average rate of increase in domestic liquidity (money and quasi-money) averaged 15 percent. Since 1970, this rate has doubled. Domestic liquidity increased by 32 percent in 1971 and by 22 percent in the first nine months of 1972. This was caused mainly by an increase in foreign assets and an increase in credit to the private sector (including ALBA). (See Table 6.2).

Prices

125. There are no official consumer price indices in Bahrain; BAPCO, however, publishes a quarterly consumer price index which is used by the Gov- errment. The BAPCO index, as shown in Table 9.1, shows a seasonal rise in the first quarter of the year and a fall in the second quarter. This is because food items (which constitute nearly 51 percent of the weight of the index) are relatively scarce in the first quarter, and relatively abundant in the second.

126. Prices recorded a rising trend over the years 1965-1970. In the nprind 1971-72 thev registered a relatively sharn increase amounting to an annual average of about 6 percent. The rise in consumer prices is largely related to the rice in nrices of imnorted zoods- as most consumer onnAd in Bahrain are imported. Another factor is the rise in the cost of shipping after the closure of the Suez Canal. There were also internsl fartnrs rplfaed to consumer preferences for specific commodities (e.g. Pakistani Basmati rice amnd Trani cement) despnite the avul1Abilitv of nparly, eniiiivalent asihatuft,ifesa at lower prices.

127. In response to recent price rises, the Government in May 1972 set up a Price Control Board to set pric for staple mar essntianl commodities. By the end of 1972, prices of 16 commodities (including rice, tea, sugar, flower, milk and Ltomal to paste) were brought under con.trol. A profit ..arklup of 5 to 15 percent is allowed to retailers, depending on the nature of the commodity. - 27 -

128. To ntrengthen the role of the Price Control Board, the (overinment established in February 1973 a corporation to monopolize the importation and conseqnupntluy thp supnlu of certain hbaicr normoditics. The capital o; the corporation is BD 2 million, with Government participation of 10 percent. As a start, the corporation will monopolize the importation of only three co=mnodi- ties which recorded particularly large price increases, namely sugar, the Traqni cemet mnA the Pakistan4i Basmati rice; the latter t,w*o comm.odities constitute about 80 percent of Bahrain's imports of cement and rice, respectively.

Wages

129. No regular statistics on wages are available in Bahrain. There is alegall minimun,-wage of BD 0.900 per -lay I',- 27 per month). Hu- ever, the a LL~ ILMLU~ JJ JJ"" 'J /'JJ 9w u y .~JjJ &I jJL I~LLILJ * lu recent increase in construction activity coupled with the return of 10,000- I'),Ann r%-uans to their country resu'-eU Jr a shortage In unr.sklle laor and consequently a rise in wages. Actual wage rates paid have been twice as high as the legal minimum,

130. In the last two years, Government salaries nave been revised and brought closer *o salaries in the private sector. Wages for unskilled labor have been almost doubled and salaries of skilled labor have increased by about 25 percent. In the Government, the starting monthly salary is BD 54 for secondary school graduates, BD 72 for Teaching Institute graduates, and BD 95 for holders of a Bachelor's degrees. These are net salaries as there is no personal income tax in Banrain. The relatively high wages in Bahrain have attracted labor from Iran, India and Pakistan.

131. There are no trade unions in Bahrain, but in response to labor de- mands made in early 1972, there are now representative committees of workers and management in the Government and in the major enterprises. The Ministry of Labor and Social Affairs provides an employment exchange.

V. DEVELOPMENT PROSPECTS AND STRATEGY

132. The oil industry (mining and refining) is still predominant in Bahrain's economy, accounting for over 70 percent of GDP, but in the long run it is likely to lose its role as an engine of growth. Bahrain still serves as an entrepot center for transit trade, but the building of deep- water harbors in other Gulf States could reduce its traditional role in this field.

133. There are, however, promising prospects in developing Bahrain as a service center for the Gulf area. Bahrain's political stability, the lack of corporate tax, with no restrictions on financial transfers, and its advanced telecommunications provide a good climate for financial banking and other related services. Some international companies and financial institutions have already established Middle East Headquarters in Bahrain. Further- more, Bahrain's location on international air routes, its good hotels (now growing in number), and its historic artifacts could make Bahrain an attractive - 28 -

transient tourist spot in the Gul" area, which is growing in importance as an "tair bridge". There are opportunities for further development in ship repair and servicing facilities. Construction of a large dry dock may begin in early 1974, with projected employment of 2,200 persons by 1980.

134. There are also encouraging industrial prospects. The geographic position of Bahrain, coupled with the availabbility of substantial gas reserves and growing labor skills, provides scope for developing gas-based capital intensive, export-oriented industries in the field of fertilizer, petrochemicals, steel, etc. The establishment of the aluminum smelter provides a strong base for developing industries closely associated with the smelter's production. A fertilizer project is under study, but no petrochemical industries are currently under consideration. Even on the assumption that petrochemical and fertilizer industries were to be established, given the smallness of Bahrain and its economy, the expected domestic gas consumption over the coming decade is likely to be modest in comparison with the substantial amount of known gas reserves. Consequently, exports of liquified natural gas (LNG) could provide another promising opportunity for Bahrain, since demand for LNG is rising.

135. Government development strategy to achieve diversification has largely relied on attracting local and foreign private enterprise, with its minor participation in the capital required for a project, while seeking to provide adequate infrastructure. The Government emphasis on its minor participation in projects is to provide nominal financial support, and to ensure some influence on a company's policies and performance. Even in the case of projects prepared and executed by the Government, the policy is to offer the private sector major participation in the capital and consequently in the management of the project. This aspect of the current development strategy represents a departure from the laissez-faire policy which prevailed until a few vears ago.

136. To implement its development strategy, the Government established a Development Bureau in early 1967. The Bureau provided various incentives for industrial investment from Bahrainis and foreign entrepreneurs. These incentives include establishing the industrial free zone area, freedom of repatriation of profits; exemption of income tax; exemption of raw materials from all custom duties if the product is exported, and half of custom duties if the product is locally marketed; exemption from custom duties of heavy industrial equipment used for local industry; and supply of natural gas at a very low rate, etc. (see paras. 48 and 49). Although the Bureau favored partnership between local and foreign capital, that was not stinulated as a nrprpneui- site for investment in the country. The Bureau's outstanding success was the formation of ALBA in 1968- and consenuentlv the construction of thp a1iimUin,m smelter in January 1969.

137. Although the Government has been emphasizing industrial development, nthpr Qpr-torq A1lcn rprpi,pAd Pnrn,irnacrmnnt :nd wpTrp lpft nnpn tn 1^w-nl :vA F-.-. eign investment. In the tourism sector, for example, the Development Bureau in 1969 provided loa to n.ber of retired boat-builders to erable the" - 29 -

to ir.crease their output of the r.odel's of Bahlraniba6ttarpour with tourists. Owing to this policy, local and foreign capital have been attracted to industry, agriculture, fisheri-es, torism, trade r. a.4cillry services, banking, etc.

138. As selection, preparation and execution of government projects (particularly theC infrastrt.ural or.es), were byn t th.ajtacty oJf the Development Bureau, a Ministry of Development and Engineering Services was e +.A11-S_A -I earl 1 A A41o. a-s rl +- Dvelopmen Bureu - .. -1 I - - 4_ _ _A...A1t SD VUL EACULAIA L a A.y 7I /J LIU GUDVL U LIL VC V C.LUpLCuLLJ.L 0M.0 WCi .L 0. LI. 0_ as an executing agency for public sector projects. The priority of a project

kW1i~LtLLL(whthr PUUJ.1Cub-c-j ULor pa0L.patalyGvernment L.La.Ly I.1JV0 Li±iLUWLL%:Uj o-w.e .LtisJ_ UT_L.-LLIl.L1LLU IJIA CLUad--I.ile h1U%.I- -o cs----UIJO h. benefit basis. Bahrain does not yet have a planning board in the formal sense

w'tLt rLacro-ecoorL..'LcUL targets. £ L-We corLtunuityU L ei.LLL u.L.L, teLL"e i8 ins£LLZLteadU a. close rapport between decision makers in the public sector, and between them

and'u trading entrepreneurs Ln the prvate sector. Th-ere-LLL 's- a aLLd Coordinating Board to review on-going projects and decide on new projects for the coming year (or few years). Lne Committee consists of the Minister (and Deputy Minister) of Finance and the Minister (and Deputy Minister) of Develop- ment and Engineering Services, with tne latter Ministry acting as executing agency for public sector projects.

139. Public sector projects have so far been financed largely from budgetary sources, recently supplemented by foreign sources mostly from Arab Development Funds, such as the Kuwait Fund. As future capital expenditures are expected to rise at a faster rate than that of budgetary revenues (paras. 109-111), resort to foreign sources may increase. The OAPEC is to finance a substantial part of the cost of the dry dock project. In addition to the Kuwait Fund, the Arab Fund for Economic and Social Development may be attracted to finance some projects. Other international institutions such as the World Bank Group and the UNDP are supporting Bahrain's development efforts; but their share in overall financing is likely to remain relatively small.

140. The financing of private investments, particularly in industry, is not a problem in Bahrain. Bahraini entrepreneurs, most of whom were originally traders, are financially affluent, economically sophisticated, and alert to industrial opportunities and some have already engaged in industrial ventures. Also, credit to private investment in all sectors is readily available. Unlike commercial banks in many less developed economies, which prefer to confir.e their credit to trade, banks in Bahrain offer comprehensive financial services, including access to medium-term credit (to a maximum of ten years) through their association with affiliates in Europe and the United States.

141. In summary, therefore, it can be said that promising opportunities for diversification exist and that they will probably not be neglected by the public or private sector, both of which have the skills and are likely to have access to the financial resources needed to realize them.

Statistical Appendix

Table No.

1.1 Population 1.2 Geographical Distribution of Population 1.3 Economically Active Population by Industry and Nationality. 1971 Economically Active Population by Occupation and NatiAonalitv; 1971

2.1 Industrial Origin of Gross National Products at

3.1 Balance of Payments Estimates lT32ilue of' Rpfined NOl VYTuir+.n from Rqhrain 3.3 Composition of Non-oil Exports (c.i.f.) 3.4 Comrposition of ImT.ports (c.i.f.) 3.5 Summary of Annual Trade 3 IJ... I)Desila+ion o.If -.-rts 3.7 Origin of Imports

.1 <~xtvernal Public nebt Outstanding as of December 31, 1972 4.2 External Public Debt as of December 31, 1972

501 Summary of Government Financial Operations 5.2 Government Revenue 5.3 Government Expenditures 5.4 Actual Current Government Expenditures 5.5 Public Capital Expenditures 5.6 Public Investment by Project, Each Over BD 10,000

6.1 Monetary Survey 6.2 Factors Affecting Changes in the Money Supply 6.3 Monetary Authorities 6.4 Statement of Assets and Liabilities of Currency Board 6.5 Gross Reserves and Net Foreign Assets 6.6 Consolidated Balance Sheet of Commercial Banks 6.7 Total Bank Credit Outstanding Statistical Appendix

7.1 Quantity of Insecticides and Fungicides Provided by the Department of Agriculture 7.2 Estimates of Annual Wealth in 1968

8.1 Industrial Establishments Registered in Bahrain in 1970 8.2 Distribution of Manufacturing and Petroleum Establish- ments by Size 8.3 Proven Oil Reserves in Bahrain, Qatar, Qman, United Arab Emirates, Saudi Arabia, and Kuwait, End of 1970 8.4 Crude Oil Products Refined 8.5 Crude Oil Production and Refining 8.6 Crude Oil Production -- Abu Salfa Field 8.7 Bahrain Oil Wells 8.8 BAPCO Employees by Nationality 8.9 Natural Gas Production and Distribution 8.10 Turnover of Bahrain Fishing Company 8.11 Turnover of the Bahrain Ship Repairing and Engineering Company 8.12 Construction Permits (Commercial and Residential) 8.13 Registered Vehicles by Type of License 8.14 Vehicles Newly Registered 8.15 Vessels Calling at Bahrain Ports 8.16 Cargoes Imported and Exported 8.17 Movements in Bahrain International Airport 8.18 Passengers Arriving and Departing 8.19 Telecommunications 8.20 Electricity Production and Consumption 8.21 Supply of and Demand for Electricity by Consumer Groups 8.22 Distribution of Electricity to Consumers 8.23 Water Supply and. Utilization 8.2h Water Consumption

9.1 BAPCO Local Consumer Price Index 9.2 Government Monthlv Wazes by Grade and Step

10.1 Population 10 Years of Age and Over by Literacy, Sex and Nationality 10.2 Number of Government Schools 10.3 TpachRrs hv Nationality and Sex 10.4 Teaching Staff Working for Ministry of Education by Nationalitv annd Sex 10.5 Number of Students by Level in Government Schools 10.7 Bahraini Graduates by Subjects Studied a 10.7 Bahraini,Graduates by Subjects Studied and Countries Statistical Appendix

10.8 Bahrainis Graduating at Foreign Universities or Higher Institutes 10.9 Expected Growth in Number of Students and Classes and the Expected Need for Teachers for Primary Education 10.10 Expected G.rowth in Nimher of Classes and Students and the Expected Need for Teachers for Intermediate Education 10 11 rG'vPenrenPnt Hat4i.h P..qtab'lismnt by Tvne 10.12 Beds in Curative Health Directorate Hospitals 10.13 Meica4lM Q'n ff

Table 1 1 Bahrain: Population

(Niimhers

Nationality and Sex 1941 1950 1959 1965 1971 1972 Januar- March Manxi Febi-ruarn-my Ap-r_i I march

Bahraini Males ... 59,913 72,368 89,772 93,004 Females ...... 58,821 71,446 88,421 91,604 Total 74,040 91,179 118,734 143,814 178,193 184,6o8 Non-Bahraini J~~~~~~~~~ 1. 7 -7A 'V))7 A1 - ') Z/I. ) '7 lACO MIlLe s ~~~~~~~~~~~~~~1...... 17, I 27,01 U V,54'2 2-6 I ,49u Females ...... 6,692 11,373 11,343 11,751 lotal~ ~Li ,7JU J.O'-+/.L '4+I+V.L JoJ7 JI J J7,L4'+7 n_. ~ ~1 ~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~D' ~_1 n ~~~~~1 I_,. t.AI0 00A- )n n/

b1LdLIU LUt}dJ.| Males 48,267 58,601 77,622 99,384 116,314 120,501 remakes 17 1 82819103 Totals 89,970 109,650 143,135 182,203 216,078 223,857

Annual Growth Rate, Since Previous Census, of: Bahraini Population 2.6 3.0 3.3 3.6 3.6 Total Population 3.6

Source: Statistical Bureau Ministry of Finance and National Economy, Bahrain. 3ahrain: GeoRraphical Distribution of Population

-.-. arii f_liz;es 1941 1950 1959 1965 197i January March May February April

Manama 27,835 39,648 61,726 79,098 89,399 Muharraq and Hidd ZiL,439 25,577 36,742 46,373 49,540 Awaqli ',532 3,846 3,123 2097 983

Other Towns and Villages 39,164 40,579 41,544 54,63- 76,155

?O'ZAL 89,970 109,650 143,135 182,203 216,078

Jrb aa~ 112,544 143,270 168,819

30,368 38,821 47,128

: ssie 22 112i 13d1

S..:ace: Statistical Bureau, Ministry of Finance and National Economy, Bahrain. Tab]e .3

Economically Active Population by _ndustry and Nationality 1)71

Industry Rahrain ulon-Bahraini TrTa1

Agriculture and Fishing 2,995 995 3,990 6.5 Agriculture and livestock Production 1,959 722 2,681 4.4 Fishing 1,036 273 1,309 2.1

Mining and Manufacturing 5,614 2,850 8,1,6L, 13.8 Mining and Quarr-ying 81 4 85C Manufacture of Food & Beverages L68 772 1,2k0 Textile, wearing apparel & leather 216 621 837 industries Man. of woo,4 & wood products, incl. furiturte h03 13L r37 Ma-n. of apaper I_-pa-e .rd.pin- .g & publishing 45 12h 169 Crude petroleum production & refining 3,791 519 4,310 7.0 Manufac+ure of rhemicals &rplastir prod. 65 72 137 Manufacturo of non-metallic mijneral prod. 137 2338 375 Non-ferrous metal basic induFtr:ies I1) 7o 231 Man. of fabricated me+al p)rod.! machinery, enuinment 220 169 389 Other manufacturing industries 33 121 154

Electricity, Gas and Water 1 ,L8o 225 1.705 2.8 Electricity and Gas 1,067 216 1,283 Water workers and wat^r s,"-o1-13 9 !122 Construction 5,639 h,765 10.8IO8 16.9

Wholesale and Retail Trad-. Rcstauirants, and Hotels L,85i 2,855 7,706 12.5 Wholesale Trade 220 107 -i27 RetAil Trad. 8,300 2.030 p.339 Restaurants and Hotels 321 709 1 0!80

Transport, Storare and Communicat on 5,067 2A.75 '7 .7! 12.6 Transnort, and Storave 8.82 2.382 6.8 6tS

C..IILII ni . .atio3n C85 298 979

Finance, Trsurance, leal Estate, Business Services 7Tl0 388L 1 ,n8 ), 1 .8 Financial Tnstitutions 595 230 725 Insu3ransce 22 27 5° Real. Estate and business services 292 87 309

Community, Social and Personal Services 10,92tn 7,Lh58 18,388 30.0 P,iblic Administration and Beferse 3;71L! 1tJ92 P206 Sanitary and similar services tOlt51 782 1,7P7 Social and related Communi+y Serv;.^es )8,292 1 ,85 5,716 Recreational and Cultural. Services 97 67 16) Personal and Household Serv4ces 1.187 2,898),681 Tntprnational and otber Pxtra=territorial hodies 6(t 1,209 A1,88

Activites not Adeouately Defined 62 [lb 106 0.2

P '5rson--Unemployed 1,400 400 1,800 2.9

TOTAL 38,778 22,612 61,390

Source: Statistical Bu-reau, Ministry of National Economv, Bahrain. Tablo 1.4 Bahrain: Economically Active Population by Occupation ard Nationality 1-971

Ocoupation Bahraini % Nnn-Bahraini % Total.

Professional., Technical and Related Workers 2,886 7.4 1,938 8.6 L,824 7.9

Administrati.ve, Executive and Managerial Workers 5h 9 1.-4 86 2.2 1,035 1.7

Clerical Workers 3,933 10.1 1,271 5.6 5,204 8.5

Sales WN!orkers h,043 10.4 1,157 5.1 5,200 8.5

Farmers, Fishermen, Hunters and Related Workers 3,123 8.1 1,1 10 4.9 4,233 6.9 M-iners, Quarrymen and Related Workers 173 0.5 )15 0.2 218 0.4

Transport and Communication tJ'ork-e-rs 3,Ur' 10.0U U I .U4-7 1,924 o.0

Craftcmen. anrd P_-oduction Precess Workers 13.12( 33.8 9.720 l9. 0 22,846 37.2

Services, Sports and Pecreati;on Workers L,.611 11.9 5,353 23.6 9,96b 16.1

Occupations Tnadequately Descr-bed 1j - fl.h 39 C)n.2 18f3 0.3

Members of the Armed Forces 928 2.14 '1 0.1 959 1.6

Pe-sons Unemployed 1,400 3.6 400 1.8 1,800 2.9

mr)T,'.T 38,778 22,612 61,390 100.0

Source: StatVsti-al RB'reau, Ministrv of Tinsnce and Netional. Ecornomy, Bahrain. Table 2.1

Bahrain: Industrial Origin of Gross National Product at Current Market Prices (in million ED) 1970 - 1972

1970 1971 1972 Agriculture and Fishing lo0 1,2 1.3 Mining and Quarrying 30.1 35.6 37.7 Oil refining 57.4 53.5 50.2 Other manufacturing 1.0 3.0 6.3 Construction 2.0 2.4 3.0 Electricity, gas, and water 1.9 2.1 2.3 Transport, communication, and storage 0.9 1.6 2.6 Wholesale and retail trade 6.2 6.8 7.h Banking, Indurance, etc. 1.3 2.3 3.9 Ownership of dwellinRs 1.6 2.1 3.6 Public administration and defense 1.0 11.5 12.0 Services 1.9 2.1 2.8 Gross Domestic Product 115.4 124.2 133.1 Income to abroad 5.0 qq.0 q8.o Gross Natio-nal Product 63.h 69.2 75.1

SOURCE: Mission Estimate

Tehrnica1= Not.eq on the E.qt+namte:

1. Estimates! of 1yrn- added in the ecors-eiaainiywenon.l based on wages, salaries and profits compiled or estimated during the Mnscnontvisit t POW"04-e nat,a ^-n th.4egr"ossoutu of+-+-heo nil sector, which includes mining and quarrying, and oil refining are avai-lable The sector , for whe pt"poses of +hese acwns) ,om= prises the value added of Bahrain's on-shore oil, Bahrain's share 4Jn the -Ab- ~caIa fa ofLf -nore o4'-1, -- A .e -1 weA- -d^4of, the--- o activity of "he limestone mining in Aali town. The value added IJ- '.5-11 4-;L~L..J.L1 .L 1uy u .La-LL- 4 V-S4'~SJ C -AeU byj o41L reY. n 4gs arrived at b.yoUubtra-ct%;ug the VL-;e of_.%Wc>de oil input from the value of refined output. Data of crude input

snd ref4-e-d. S t zre ca4'ablUe JL4L L e8.L 5 .

2. T--ru to -- --abroad- -peut larel -- J.v trUsfr brad 4- 4the form of profits and salaries, made by the oil sector (BAPCO's onsh-oree cnuude oil pJr±oda-cuAion, LUW1VCj'J o±.LLW.Lo-t cr-udeL" oJ'-pruc-- tion, and value added of the refinery). Income transferred abroad

by the oil sector is assumed to be equivalent to u4.0 per-cert oU the price of each barrel of crude oil and 80 percent of the value added of the r-efinery. A^lso transferred abroad is a poriVon o- the pro°its and salaries accruing to foreign shareholders and employees in tne Aluminum smelter, Babrain Shipping Company-, DBarain Fishi ng Company-, Gulf Aviation, Insurance Companies, Banks and other enterprises. As a result, BAFC'ts profit transferred to aDroaa snown in the Balance of Payments (Table 3.1) is only a small portion of the income transferred to abroad shown above.

Table 3.1: Balance of Paynents Estimates

(In BD million)

Jan.-Sept. 1968 1969 1970 1971 1972

I. Exports 100.0 106.4 113.3 116.9 83.2 Of which: Refined oil products 82.0 87.7 91.2 92.6 66.9 Others incl. re-exports 18.0 18.7 22.0 2L.3 16.L

II. ImDorts 91.9 99.5 125.5 152.1 100.7 Crude oil 39.9 41.5 454-7.1 Y33 Other 52.0 58.o 80.1 105.0 67.3

III. Trade balance (I - II) 8.1 6.9 -12,2 -35,2 -17-q

IV. Services, transfers and non-monetary capital -9.1 -4.6 18.4 46.9 24.5 Tnterest on government foreign assets 2.0 2.0 2.0 2.0 2e0 Transfer of *nrofits nf BAPCO 1/ -7.8 -8.1 -8.6 -9.0 n.a. Travel (net.) 1.7 2 30 Government share of oil revenue fronm Ahti RSafa field 2.2 3.0 2.9 5.1 5.4 Direct jnroc'.et bh ATrA - 1.0 31.0 214.o 18.0 Other entries (including net erroors wad omissions) -7.2 -14.8 -11.1 21,8 -3.5

V. Total (III + IV) -1.0 2.3 6.2 11.7 7.0

VI. Monetary movements Mc-e a -) 1.0 =. -6.2 -11.7 Currency Board -7 -T.3 -1.3 -1.2 2.0 fIoUA.L,erci 'mILL - -2,4 e.2s -.. , -5. -7 .6 Government 6.0 -5.2 0.6 -5.0 -1.4 .X positi.Lon (,) (-) ( ) ( -.L.2) Other (6.0) (-5.2) (0.6) (-5-0) (-0.2)

Source: IMF estimates. The IMF figures were expressed ia SDRis' They were converted nUto BD's -usng the folloing rate of exchange BD = SDR 2.1.

1/ It is ass-umed that 80 purcvit of BArPO's profits are transferred abroad. Table 3.2 Bahrain: Value of Refined Oil Exmorts from Bahrain

(In thousands of U. S. Dollars)

Total Attributable to RBh rmin Crude 1955 169,54o 24,430 1956 165,630 24,560 1957 173,060 29,810 1958 179,210 37,560 1959 168,570 39,520 1960 176,420 37,940 1961 181,290 36,530 1962 200,490 38,020 1963 195,150 35,560 1964 164,320 40,210 1965 153,850 44,740 1966 160,770 47,740 1967 179,920 49,870 1968 172,120 55,450 1969 184,180 57,720 1970 191,600 58,970 1971 253,061 71,850 1972 246,962 69,257

Source: Ministry of Finance and National Economy, Bahrain. Table 3 .3 Bahrain: Composition of Non-Oil Exports (c. i. f)

(In thousands of Bahrain dinars)

1967 1968 1969 1970 1971 1972

Food and live animals 3,150 1,900 3,163 3,858 4,379 4,667

Beverages and tobacco 461 418 538 &14 515 2,187 Manufactures, classified chiefly by material 4,156 5,955 6,167 7,172 8,310 9,095 Machinery and transport eqaipmiaie 2,842 3,288 1,978 2,210 2,684 5,955 Miscellaneous manufactured articles 2,856 5,195 3,995 5,194 4,874 9,023 Other 737 1,279 2,815 2,716 3,562 1,365

Total 14,202 18,035 18,656 22,02 4 24,324 32,292

Source -: Statistical Buireau, Ministry of Finance and Naticnal Economrs Bahrain. 1/ Includes re-exports. Table 3.4

Bnarain: Compositi-on 0o lmports (C.i.I.)

(I thousands of Bahrain dinars)

1967 1968 1969 1970 1971 1972

Food and Live animals 10,271 10,473 11,882 13,457 14,536 14,922 Beverages and tobacco 1,029= 943.' 1,257-' 2,635 2,532 2,932

Chemi cal.s 2/ 2/ .. I 3,j144 7,135 6,287 Manufactured goods classified chiefly by material 10,931 13,987 15,410 22,936 30,625 26,669 Machinery and transport equipment 13,532 16,948 14,483 ?3,958 33,332 30,539 Miscellaneous manufactured articles 6,200 7,100 7,900 11,1432 13,983 15,723 Other categories 3,490 2,570 7,067 2,565 2,862 33030 Total 45,453 52,021 57,039 80,127 105,005 100,102

Source: Statistical Bureau, Ministry of Finance and National Economy, Bahrain.

1/ Excludes beverages; beverages are included in "other categories". 2/ Included in other categories. Table 3.5 Bahrain: Summary of Annual Trade

(In thousands of Bahrain dinars) Imports Exports 1/ Percentage Increase (Excluding (Including Over the Previous Year Index 1966 = 100 Year Crude Oil) Re-exports) Imports Exports Imports Exports

1966 43,034 12,209 -- -- 100o0 100O0 1967 45,453 14,209 5.8 16,3 105.6 116.4 1968 52,021 18,035 14.3 26.9 120.9 14707 1969 57,939 18,656 11.3 3.4 134.6 152.8 1970 80,127 22,024 38.3 18.0 186.2 180.4 1971 105,005 24,324 31.2 10.4 244.0 199.2 1972 100,102 32,292 -4.6 32.8 232.6 264.5

Source: Statistical Bureau, Ministry of Finance and National Economy, Bahrain,

an Sai.sto . Ci Table 3.6

Bahrn: i1-flsZTL,Onarts-/ 01

(in thousanrds OI Bahrain dinars)

1967 1968 1969 1970 1971 1972

Saudi Arabia 7,631 10,625 9,924 12,544 14,017 16,523

Qatar 1,842 1,554 2,309 1,320 1,648 1,833

Iran 1,251 1,052 658 902 1,043 1,916

Kuwait 753 727 1,733 2,993 3,518 2,146

DuXbai 758 905 1,257 1,510 1,442 2,204

Abu Dhabi 1,076 1,112 977 466 639 569 Oaan 292 262 343 357 304 447 United States 124 579 346 502 217 400

Japan 97 237 476 309 399 503

United Kingdom 169 488 303 451 711 860

Other countries 209 494 330 670 386 a.891 Total 14,202 18,035 18,656 22,024 24,324 32,292

Source: Statistical Bareau?, Ministry of Finance and National Economy. Bahrain.

1/ Excluding gold, silver, oil and refined products, and sales to aircraft and ships. 'P -1-h I a q 7 Bahrain: Origin of Import 8-

(In thousands of Bahrain dinars)

Imports (c.io.f ) 1967 1968 qi96s 19'70 Y971 197_

United Kingdam 10,235 12,735 14,269 2L4,904 31,754 27,194

Japan 6,049 8,248 8,269 9,972 12,793 ih4,869

United States 5,823 6,289 6,171 5,812 12,630 13,O16

Peopleva Republic of China 1,846 2,435 3,799 4,091 5,367 6,594

Netherlands 1,426 1,499 1,692 3,817 5,671 2,393

Germany, Federal Republic of 1,681 2,239 2,394 2,684 4,155 49,678

Italy 1,105 1,383 1,255 1,580 3,204 1,854

India 2,521 2,516 2,839 3,347 3,031 2,835

Iran 1,127 765 920 1,270 1,972 1,894

Pakistan 1,960 2,455 2,260 2,915 2,438 i,95)8

Hong Kong 1,603 1,785 2,242 2,495 2,790 2,537

Australia 984 876 844 1,108 2,591 5,978

SaUdi Arabia 236 315 415 607 779 1,136

Switzerlaad 1,143 672 1,499 641 1,346 1,122

Lebanon 753 729 810 951 1,267 1,485

China, Republic of -- - 287 825 1,162 2,o58

Belgium 273 218 324 507 521 1,140

Denmark 676 836 795 988 1,199 19,322

Dabai 115 248 382 1,113 692 943

Iraq 642 744 621 839 659 834

Kuwait -- 51 193 595 668 1,055

Other countries 5,265 4i29 5,446 9,066 7816 9,207 Total 45,453 52,021 57,939 80,127 105,005 100,102

Source: Statistical Bureau, Ministiy of Finance and National Econony, Bahrain.

1/ Excluding gold, silver and crade oil.

Tab-Le 4 1 ' EARRAIN O81/03/73 EXTERNAL PUBLIC OEBT OUTSTANDING AS OF DECEMBEI 31'1972

DEEIT REPAYABLE IN FOREIGN CURRENCY

IN THOUSANDS OF U.S. DULLARS

DEBT IDUTSTANDING DECEMBER 31#197'2

CREDITOR COUNTRY UN 0S1' TYPE OF CREDITOR DISBURSED BURSEDI TOTAL

I( wAIt MFUID 5, 92 8 5,59 2 tI WAN'S FROM GOVERIDMTS 5,928a 5, 92B

TOTAL EXTERNAl. PUBILIC DEST 5,928 5,p92El

NOTE: nERT WITH A MATURITY OF OIVER ONE YEA4R

E)CNOWMIC LND SOC IAL DAkTA DIVISION ECONON):C ANALYSIS & PROJECTIONS DEPARTMET AUGUST 8, 19'73 Table 4.2 ' RUTN 08/C0 3/73

EXTERNAL PUBILIC: DLBT AS CF DECEMLBER 31#1972

DEBT REPAYABLE IN FOREIGN CURRENCY IN THOUSANUS OIF U,S. DULLARS TOTAL TIAIS F1OM GOVNUmE KUWAIT i'uN1

IDEbTr OUTSTAND:ING THANSACTIONS DURING. PE.RIUD BEGINNING OF PERIOD CANCEL L AT ICINS DISBURSECD INCLUDING C04MI T" DISBURSHE SERVIlCE. PAYMENTS ADJUSTo YEAR ONLY UNDISBURSED MENTS ME.NTS PRlNCIPAL INTEREST TOTAL MENTS (1)> (2) (.3) (4) (5)Y 116) (7) (8C'

197u a ~~~~~~~U 0 ~ ~~~~~~~~~~~~~2,08- 1971 " - 21W()() ;2*8iD0 2'biOQP -0 480 197; 3'o04 ) 6j,08 - ,3O)4U 1 5 61 2!13

'1973 5J0 2i 5J29Oa 5 45 2U9 753 659 1974 ,0p 6j,042 a 63d W20 8l58 e 1 75 5.>tJ44 5i( U 0 63d 196 al834 1976 4 '765 4i765 6 i 112 810I 1977 4qj1 27' 4i27 631 147 7866 1ci7P 3io 4d6 3v'4d8 63d 123 7622 197) 2J, A5, 2j,b5U ' 63d 99 7377 198.) iJo711 ?X'211 6id 75 713 I91 1) IJo57 3 iJ573 a - 63d 50 689 1 6 q34, Y34 ' . 545 26 5T1 19 t, 3 3 Cou, 13u 11 141 1 S84 26.) 26U . 7 1 37 1130 3U * 1 30 3 1 33 0

ECONOM1C AND SOCIAL' DATA DIVISION 3CONOIC ANALLYSIS & PROJETIONS DEPARTMENT AUJGUST 8, 1973 Table 5.1

Summary of Government Financial Operations

(In thousand Bahrain dinars)

Actual 1968 1969 1970 1971 1972

Budgetaxy revenues 18 722 21 741 22 213 27 469 32 822

1. Oil receipts 1/ 1E892L -_ _ 21.s21 _ a. Royalties 70 2, 755 b. Tncome tax 9.hl9 11. 737 11.663 1 3.19Q 13. 265 c. Other 2/ 2,173 2,981 2,919 5,1o6 9,472

2. Customs 2,593 2,818 3,184 3,536 3,819 3. Other I 30 J,160 1I691 ,9412 2,099

BuAvptayv PvenAi+avrbA. 1 7-9),-f] 190} A2A 23-08 7 88R 4,1 l6 1. Current expendIftures 1/ 15,47 l7,3 I52 26,069 2.. n+.nl qvnAnrn-+vrAn -7 onoo I n-A,7R ), A o'-i 7 )n )j ------{ -- // -YvI--S - 3 - 15_ ) 7 L /

.q n i4mn-AfM+ 7 7,:)' - _P7A -),I) Q AM

Aet f.-Ir.4t ) ., 6 -4l

oper ns of wi ch: -3 747 -413 -329 7 <011 3,1 3 8 Net~-alendlingr_7MI -_, I ,\ --7+l "IS.9r 7r,-M T 7- nca

^~~~~~~~~~~~~ 'V7 c 2~C '?'rz 1, rSve -37 Net foreign assets: T...n-as I(-= 6,^^^t' -r,2' _4,.46W7L. Net deposits with

dbl.cse.1. ~ J...J...LL.4..JO#J.J %JJ. .XA.L OLLL L'I 0. ( -9 -) 2,U9LLVLY, wO -1Ba6rain

1/T .1.1.LLL~LLLL~0 sN-des the4L SbareeO104~ OfPJ.L fVCLUHead O0IJL S,;e0 toL0Iu a-wuuindLIIf LI.LUg g ~00±~lXuwOnXe- 0±s-VYUjV,ltie IIhr UJb and income tax. An equtal amount is included in current expenditures. IV 161CALLV=.L A ca`w-re VL-1 rev&Uenu 01-JJUUe 011- tWtli fr01m AVJU Sa-a a 01I :snOre oilfield operations by AramCo. MI- I . 1 ____ 4__ 4 - - P 4s1 -n: V-1 _A_4- __o; ;.- TN _-- - 4 _, £'A3.LUUU.e, _LIVt:: UIjLtIIUD. L U~ 1 1t;± ZI.L~_ UL. 01Ut>UL,J £J.L±UeO U , i.L.i - autonomous public body (see Table 5.5 y'EJsUiL mate. Table 5.2 Government Revenues

(In thousands of Bahrain dinars)

Actual 1968 1969 1970 1971 1972

1 .Oil1 receipts l4.89 17.473 17.138 21 - 'l 26- nl, Royalties 2,710 2,755 2,756 3,216 3,267 Tnc,meA tax 9.910 U 71;7 11;-661 11-199) I 3A-;6 Other 1/ 2,173 ?,981 2,919 5,106 9,,472

2. Other revenu-es R Q ,9AA ), R7K C o), R A RIR Customs receipts 2;9 2 3 ,5 1 3 3 8 Gnasol ire tan 36 172 1A6 195 197 Fees and charges 725 683 820 967 2,027 TIn,comAe fwnm governnt land 525 571 676 568 758 Other 19 2O 90

3. Total (1 + 2) 18,722 21,741 22,213 27,469 32,822

0our-ce ofinLLCOWJ.t-J ,z.LI.A E.L C.EaQ.LU0AM,BCwhr-a-. -J

shore1UL.V.U =L L VA.LLLLUbAL.Lrc LL0.L. U.L UO.LJ .1.'JU Au LJLmV.La V. shore oilf ield operation by Aramco. Table 5.3 Government Expenditures (In thousands of Bahrain dinars)

Actual 1968 1969 1970 1971 1972

1. Current expenditures 15i1-47 17 302 18 611 20 957 26 o69 w:Ad(¢S+.A+.A 1 / ),~r91 7 & Education 2,934 3,286 3,663 4,41i 4.6214 9 1)J)h 9 -A7), 9 - 7),' 3, Defense and security 2,208 3,297 3,646 3946 4,504 Otier 3,344 ~~~~~~~3j,°4 ~~~~~3.,297 35O. 47,5227 (Thh~~~~~'~ ~ ~ ~ )II~~IA)) '_91)h ~7C3,' 1i.C(7 7 797

2. Capital expenditures 2/ 2,099 1,716 4 478 6 931 7 3947 Isa Town 1,154 768 418 267 210 O+v ol,A94 ArIcI -i 7) ',7rd

3. Total expenditures (1 + 2) 17,2246 19,018 23,089 27,888 33,463

Source: Ministry of Finance and National Econony, Bahrain. 1/ One-third of royalty and income tax.

/ ~bExcludes capital expenditures of the Electricity Directorate, which is an auonoumous public body (See Tabie 5.5 ).

r01stimate Bahrain: Actual Current Government Expenditure, 1971-72

Mf 4ieE;s 1070 1071 1072

1. Finance and National Economy 765 842 904

2. Information and Broadcasting 152 222 272

3. Labor and Social Affairs 216 302 562

4. Education 3,663 4h,410 4,624

5. Justice 263 299 333

6. Health 2,742 3,030 3,20h

7. Agriculture and Municipalities 61)4 589 567

8. Development & Engineering Services 6,052 6,248 3,128

9. Foreign Affairs 35 319 356

10. Bahrain Defense Force 1,591 1,500 1,500

11. Public Security 2,055 2,446 3,003

12. Others 'h63 750 7>616

Total Expenditure 18,611 20,957 26,069

Source: State of Bahrain Department of Finance and National Economy. Table 5e5

Bahrain: Public Capital Expenditures

(in thousands of Bahrain dinars)

1966 1967 1968 1969 1970 19L 1972

1. Central Government 2,196 1,954 2,099 1,716 4,478 6,931 7,39k4 Isa Town 1,668 1,295 1,154 768 418 267 210

Airport - - - 3,249 4,99o 480

Other 528 659 945 948 811 1,67h 6,704

2. Autonomous Public Bodies

Electricity Directorate 860 1,099 741 817 15l 1.528 n.a.

3. Total (1 + 2) 3,o56 3,o53 2,840 2.533 4.929 8.L59 '7Z439

Source! Ministrv of Finanne and National Economy, Bahrain. Table 5.6 13ahYr'aina: Pibli.ic Investment by Project, Each Gv!r BD 10,000

(In thousand Bahrain, dinars)

Date Di stx-b =tion _of COEI T

Mina Salman Recla- 12 1972 1973 3 9 Ministnry of Bahrain Gove:nment matian Delvelopment & E&ginLeering Servi.ces

Port Extensicn Survey 4O 197:2 1973 40

Airport Extension and VIP Lounge ]L50 1973 1974 50 1.00 , Airport Runway 2,869 196'? 1973 2,860 9 Bahriain Govermment and the U.K. Government Airport Tenninal 7,171 196'? 197,3 6,945 200 Bahrain Government Maharrag Cauaseway 8i93 197( 1973 804 89 lBahrzin Government anid Bridge tile Kuwrait Fund Salmanya Medical 1, 250 1972 1974 ,527 700 23 Elahratin Government Centter

Government Housing 760 1971 1973 :228 350 182 I

Isa Town n.a. 196.3 n.a. 470 "

Broadcast Station 120 1972 1973 4 116 ,, Removal of Crushers 150 1973 1974 50 50 50 "

Sitra Power and 19, 760 1972? 1975 ,315 2,8'17 2,000 2,86 8 "Eahridn Government Water Staticn and the Kuwmait Fund Total 33,925 l11518 4,900 SoUrct: l4inistry of Development and Engineering Services, Bahrain. Jt Exclucde,s the follipwin,g projects: Water Supply & Sewerage (begins 1974)- Hotel (be gins 1 97l~); Extefnsion of Mina Sui,mani Port (be gins 1974) Fertiizer Plant (begins 197'); the second stage ol Sitra Power Station (begins 197 6 j, &id Cost of construct:ion and maintenance work for 1973 estimated at EID 3.9. Table 6.1 Bahrain: Monetary Survey

(In miUions of Bahrain dinars)

December 1967 196b 1969 1970 1971 1972

FhroeAin aSsets (nat) ho- '39A hi A6 h7A8 5g95 6n.0

Gre-it tn orivat sectnor 19.1 180O 23.5 2h9 7 35.7 44.1

Qa1si-.mo...Mnney 23.~~~70o8.7 27.8Q-' A9 9.126.Rh37 0) 18.5 9)K6 132.7

Governen,t deposits (net) 7.9 11.*6 8.7 8.2 9.9 4.6

C VU A * & f Cw °. r sOwv v foreign assets 12.2 6.2 11.4 10.8 15.8 17.2

Other items (net) 0.7 2.5 4.5 5.7 6.6 6.3

Sources: Bahrain Currency Board and data supplied by the Ministry 'JJ. arcea..aiJ.WU .£orlws, BqA.L .A @ Table 6.2 Bahrain: Factors Affecting Changes in Money Supply

-4.Changes from previous period in million Bahraini dinars)

December 1968 1969 1970 1971 1972

A. Absolute changes in: Monev and quasi-mmney 5.2 3.6 7.2 15.1 13.1 Money U7 -17: 77 ': 5.0 Ouasi-money 0.4 4.9 L. q 6.1 8.1

N'et domestic assets 6.3 1-2 1.2 3. 12= (a) Credit to private sector 577 375 T7 11U T4 (b) Government deDosits (net) (increase -) -3.7 2.9 0.6 -1.7 5.3 (cG) rGminternart of government foreign assets (increase -) 6.0 -5.2 o.6 -5.0 -1.4 (d) Other items (net) (increase -! -1.8 -2.0 -1.2 -_.9Q 093

Wbrai-n assats (nat) -1-0 2 R 6 ? 11-7

B. Pe-rtcetage chAnges a"ainst pnviviis8 peiHod

Mnnnv nnd nin8id- mpv 6 in 1A 22 Money a1 -5 10 31 32 (hI Sl_ cm9 5 54r 32

~~~~~~~~ .~~~~~~~~~~~~~L.IP CU I -~~~~~~~~~~- ~

Sources: Bahrain Currency Board and data supplied by the Ministry of Finance ar.d IaTi- 1c ' E cor.o.v

Note: The discrepacies beUtween tbe assets and oney and quasi-money are cue to rounding. Table 6 .3 Roahvs *i Mvn,,+.n"r Ai+h'-in t¶iM

(Tn m4lIo4nv of B°okev-n 7)rvn-at)

December 19 v7 10 10 I970% 1z071

uurreney BDoard' k130) (1.7 (2-> 2.0) (cQJ- 5- Government (12.2) (6.2) (11.4) (10.8) (15.8) 1702

Currency in circulation 8.0 10.0 10.7 11.3 12.5 13.3 Of Vnicn: currency outside banks (7.3) (8.4) (9.3) (10.1) (10.9) (I1.I) Foreign liabilities 5.4 7.0 7.9 8.7 10.4 12.0 Counterpart of government foreign assets 12.2 6.2 11.4 10.8 15.8 17.2 Other items (net) 0.1 0.7 2.3 2.9 3.0

Sources: Bahrain Currency Board and data supplied by the Ministry of Finance and Nationa]. Economy, Bahrain. Tabie 6 4 Bahrain: Statement of Assets and Liabilities of Currency Board

(In millions of Bahrain dinars)

December September 1967 1968 1969 ?970 1971 1971 1972

Foreign Assets 13.5 17.7 20.9 23.0 25.9 (25-4) (24.3) Gold (4h0) (4h0) (4h0) (4.0) (4.0) (h.0) (4i0) Cash and Deposits (0.5) (0.1) (0.6) (0.9) (0.5) (6.6) (0.6) Treasury Bills (5.7) (10.2) (12.9) (14.7) (17.9) (17.1) (9.5) Other securities (3.4) (3.4) (3.4) (3.5) (3.5) (3.6) (10.2)

Unclassified Assets _------_- -_- --

Total Assets = Liabilities 13.5 17.7 20.9 23.0 25.9 25.4 24.3

Currency in Circulation 13.4 17.0 18.6 20.1 22.9 22.7 23.3

Currency in Bahrain (8.0) (10.0) (10.7) (11.3) (12.5) (12.4) (12.4) Currency outside Bahrain (5.4) (7.0) (7.9) (8.7) (10.4) (10.3) (10=8)

Unclassified Liabilities 0.1 0.7 2.3 2.9 30 7 1.

Source: Bahrain Currenev Board. Bahrain. Table 6.5: Gross Reserves and Net Foreign Assets

(In BD million)

December 1967 1968 1969 1970 1971 1972

1. Government 12.2 6.2 11.4 10.8 15.8 17,2 Foreign exchange 12.2 72 11.1 10.8 Trg '&. Reserve position with Fund - - - - I,.2

2. Currency Board 13.5 17.7 20.9 23.0 2.9 2)i.3 Gold 4.70 4.0 0h 774.0 h10 Foreign exchange 9.5 13.7 16.9 19.0 21h9 203

3. Gross reserves (1 + 2) 25.7 23,9 32.3 33.8 41.7 42.5

4. Commercial bank foreign assets 2n-9 2),__ 2_1_ 27.2 38_2 C9. 5. Foreign liahilities 6,3 9. 13.8 13.2 Commercial banks 0.9 9.5 10.5 i-T;6 ri rrt*ncy Board 5,J1 7.0 7.9 8.7 lo. 10.8

6. Net foreign assets (3 + 4 - 5) 40.3 39.3 41.6 47.8 59,5 .67,5

Sources: Bahrain Currency Board; and data supplied by the Ministry of Finance and National Economy. Ta;ble 6.6 Bahrain: Consolidated Balance Sheet of Comaercial Banks

(In milliois of Bahrain dinars)

December 1967 196i 1969 1970 1971 1972

Assets Reserves 0.7 1.6 1.4 1.2 1.6 1.5 Foreign assets 20.9 24.8 23.1 27.2 38.2 46.8

Cash and sight deposits ( 7.2) ( 5.3) ( 1.9) ( 3.2) ( 6.8) ( 8.7) Other deposits (13.7) (19.3) (21.1) (23.5) (31.1) (35.7) Treasary bills and bankers' acceptances (--) (--) (--) C--) C--) (0.8) Other ( -- ) (0.1) ( -- ) (0.5) (0.3) (1.6)

Credit to the Government -- 0.1 0.3 -- 1.9 - Credit to private sector 12.1 18.0 23.5 24.7 35.7 53.1 Unclassified assets 2.2 1.7 2.1 2.5 5.2 6.8

Total assets = liabilities 35.9 46.2 50.4 55.6 82.5 108.2

Liabilities Demand deposits 15.7 19.4 17.2 19.1 27.3 31.4 Time denosits 8.7 9.1 11L.O 18.5 21X.6 327 Foreign liabilities 0.9 2.4 5.9 4.5 10.0 17.3 novernmpent diposits 7.9 11.7 9.0 8.2 i1.8 1*37 Capital accounts 1.0 1.0 1.5 1.2 2.0 3.4 T-n--lanfiAtIB iahil rtire 1.8 2.5 2 8 471 6=8 9=7

. OLn_^+Ri>nn5s7nmrR:a_.S s -:i Table 6.1: Total Bank Credit Outstanding

(In thousands of Bahrain dinars)

December 1970 December 1971 Amount I*rcent of Total Amount Percent of Total

Manufacturing 8,161 31 11,672 31 Construction 1,803 7 2,996 8 Trade 8,220 32 13,41 35 Transport 3,638 14 3,212 9 Government 62 0 2,053 5 Personal 2,640 10 2,.504 7 Other 1,505 6 2 ,304 6

Total 26,029 100 37,782 100

9 These figures include commitments as well as actual disbursements and are not the same as figures of Bank Credit in Table 6.6.

Source: Data from commercial banks in Bahrain.

rFableT. 7. 1 Bahrain: Quantity of' Insecticides aid Fungicides Provided b;y the Department of AgricuLlture (Lbs.).

Chemicals 1965 1966 1967 1968 1969 1970 1971 1972

Insecticides 1,093 484 3,055 15,505 6,824 5,359 6,124 8,150 Fungicides 826 508 2,557 2,402 1,691 1,377 2,983 2,793

1/ Excludes IMetasiytox. 257. E.C. Source: Compiled from data provided by the Ministry of Agriculture, Bahrain and from FAO: Report of Bahrain to the Fifth Session of" the FAO) General Conference; Rome, 8-27 November 1969. Oriental Printing Press, Bahrrain Rl,waoe 'Pable~ 7.2 mEV+-t+e^P Anal Weal+, _n 10kR

n.,a.^ T4-kep . P-- -t *Production j.-

IU,U~~~~JU .~~~U,UUV

Ljamej.t1 _ __ _ - > Wggs- 1 producea in winter/day. Iv. 22, wU

Poultry 40,uuu Eggs produced in summer/day 2,000

Broilers/month except summer 10,000

Source: FAD, Report of Bahrain to the Fifteenth Session of the FAO General Conference. Rome, 8-27, November, 1969. Table 8.1

Bahrain: Industrial Establishments Registered in Bahrain in 1270 By Type of Activity and Number of Persons EpMloyed

Number of Employment Activity Establishments Local Foreign

Crude Oil Production and Refining 2 4,455 631

Farm Poultry 4 13 1

Dairies 3. 10 32

Fish Processing 1 79 200 Bakeries 4 45 43

Beverages 7- 183 190

Paper Production 2 24. 9

Printing and Publishing 6- 40 80

Plastics 1 95 5 Tiles 9 47 41

Ice 6 10 18

OXygen 3 10 6

Ship Repaii 1J2 78 245

Concrete Blocks 18 88 110

Repair Shops 62 91 113

Neon Signs 3 6 2

Natural Gas distribution 1 16 21

Water Distribution 3 4 2

Crushed stone, dealing 7 40 39 Prefabricated 1 47 20

TOTAL 145 5,381 1,808

Source: Ministry of Finance and National Economy, Bahrain ~~)an7a9I:: IJLY ,t -1 IU LI) i U i :!)~W ~!II U UU LL-1-1 iU.' I fLL F L~': ~ U UYIIIe By Size, 1969

Total Number ?-'m er of 'ers,ons Er-ployed Nurber of Establishments of Persons Fhnloyed

es trhan I 90. j

10 )A9 417 in and over 6,228

TOTAT, 145 7,189

Source: iegister of Commeree Bureau, Bahrain. Table 8.3

Recoverable Oil Reserves in Bahrain, Qatar, uman, United Arab -nirates, Saudi Arabia, and Kuwait.

(Million barrels)

Country Proven Reserves

Bahrain 375

Qatar 7,000

Oman 5,000

United Arab Emirates 22,768

Abu Dhabi 20,768 Du.bai 2,000 Fujaireh Ras Al-Kinaimah Sharjah Aiman Umm Al-Qaiwain

Saudi Arabia 138,000

Kuwait 64,900

Total 238,043

Souirce: ITn ation+- Petrole.m' EncyclopedIa, 1973

Some sources estimate Bahrainis reserves at 350 million barrels. Table &84Bahrain: Crude Oil Products Ref ined

Inh thLousands of U. Se barrels),

Ref'ined Procducts 1963 1964 1965 1966 1967 19s68 1969 197() 1971 1972

Naptha 1,943 2,239 3i,796 4,4454 8 ,j.25 6,042 '7,61( 7,462 5,.559 5,992

Gasoline 14,422 14,472 11,090 10,065 8,:392 6,,946 8,03'7 8,225 8,268 7,326 Kerosene 3,590 2,923 2',731 2,427 2,:264 1,895 :L,10:2 1,076 1'139 949

Aviation turbine fuel 5,138 6,580 8,943 9,456 13,407 15,227 13,752 13,892 15,634 15,069

Poiwer kerosene 637 545 44c) 336 39 ------

Diessel oiL 19,804 15,765 12,772 12,777, 13,326 13,682 16,147 :16,993 19,265 19,727

FNJl oil 33,360 27,680 27,538 29,479 37,844 35,o76 35,651 39,347 38,739 32,7u4.

Lube distiUate -- 528 784 583 638 1,084 954 1,098 1,165 630

Asphalt 187 205 L)' 18 18 _- 4 u _1136 16 320 Total 79,081 70,936 67l,626 69,594 84,352 79,993 83,313 8B8,228 89,956 82,7559

Source: Statistical Bureau, Mini;try of Finance and National Econioni, BUarain. Table 8.5

Bahrain: Crude Oil Production and Refining

(hn Thousand US Barrels)

Production: Runs to Refinery Other Bahrin Total Stocks Total Field Bahrain Arabian Crude Run Processed Processed

.I O5 En- -- f4 t1... j 3 nl, 7 -n nP 3 - 1966 22,521 22,516 49,397 71,914 1,564 73,477

1967 25,370 25,311 62,445 57,756 1,411 89,166

1969 27,774 27,8-13 58,159 85,973 14 85,987

1970 27,973 27,941 63,518 91,459 1,266 92,725

1971 27,346 27,392 65,943 93,335 754 94,Wb9 1972 25,508 25,567 60,309 85,876 1,364 87,240

Sources: Statistical Bureau, Ministry of' Finance and National Economy, Bahrain

Note: Items may not add up to totals because of rounding. Table X.6 CrLide Oil Production - Abu. Sa'fa Field

(IA thousand U.S. barrels)

Year Production

1966 11,1±88

1967 lL,871h

1968 22.733

1969 2h, 351

1970 27.310

1971 32.117

1972 3hi., ?8

Source: State of Bahrain, Ministry of Finance and VNatrin n1 F q-^n £ww- nlM_A;,I v7 .Ld.LJJ UV1. Bahrain: Bahrain Oil Wflls

Well fl . t - - nt- - , _E 1f %f 1d L ft7 11 f_% -. sl n Condliuton i963'O l0964 1965;) 1L9u6 197 1 196U 1y97J.Y (U .Ly (I 197(2

Campleted 215 223 229 235 241 247 255 256 263 270 Producing Oil 170 180 186 198 199 208 213 203 215 211

Producing Gas 5 5 5 5 5 5 7 8 8 10 Gas Injection 6 5 5 3 4 5 6 7 7 7 Standing 14 13 13 8 12 8 8 16 10 16* Abandoned 21 21 .21 21 21 21 21 22 23 26

Source: Statistical Bureau, Ministry of Finance and National Economy, Bahrin. 3/ Remedial work or shut-in. (in progress)

* Includes 2 Khuff gas wells scheduled to go on stream in 1973. Table 8.8 iTThhrain: lBapcno Ft,.>o-ees bhy National.it- T~~-72 lTational1ity 1947 19e,68 !969 1970 197_1

Bahrairu. s 3,927 82,5 3,9, 8 86.1 3,903 87.6 4,208 88.8 3,900 89.1 34,i60 8''.1

British ,)oo 8.L 322 7.0 290 6. 5 28L, 6.0 249 5.7 225 5.8

Cormonwealth 2)!8 5.2 166 3.6 125 2.8 128 2.7 114 2.6 101 2.(

Gulf Arabs 90 1,9 V, 1.6 80 1.8 90 1.9 53 1.2 L7 1.2

Ame!ricans Lb 0,.3 'iL4 0.3 9 0.2 10 0.2 13 0.3 12 0.3 Other Natirmnal-:- ties 81 1.7 ,l 1.b L9 1.1 19 Q. I )48 1.1 38 I.0C

TOTAT, h,y6o 100.0 4,5598 100.0 L554. 100(.0 )4,?79 100.0 ),377 1o0.O ,833 1

Source: Bahrain Pe!troleur Compan=y. Liritecl, B3ahrain. Table 8.9 Natural Gas: Prodaction and Distribution (In million cubic feet)

1967 1968 1969 1970 1971 1972

Prodnbotion Arab zone 19,791 26,617 33,440 25,407 18,364 20,855 Xhuff zone -- -- 84o00 18.716 44 033

Total 19.791 26.617 33WhjO 33,807 37.080 6h.888

Distribution Manama (electri- cityt) h,696 hL73 <;0'2 5,511 5,652 6onh3 Alba 5_,460 26,969 Rafi erQv, 5,5 01 q-o58 5,874 A-,794i A6,253 7,920 Reinjected 9,665 16,845 22,534 21,502 19,649 23,929 Awal i TVrnApti ------279_

Snr i 'inrnn Aymii sq1 Amr.wvPE tunv! rnvin i-cumAanma- An+-n fwvv% +ihA* V47qi4a+wtvC 1%- …*-es:-Bapco--- - - d-is f- -h- 1--s-., Or Finance and National Econons5r, and INF staff estimates. Table 8.10

Bahrain: Bahrain Fishing Company

Year Ended June 30 Turnover Capital Investment (]3ahra-in D}i nAra ( Rah, 4-n 1U nav-w)

.,72/ 821)346,011i 19 8 / 579,321 16,952 1969 959,167 270,354 1970 1,797,250 97,369 10-71 1inn A7m1, 1972 1,331,541 48,970

/ Sales value of shrimp caught and other income, mainly processing shrimp fcLor o' .er ----- '-ies. g/ Five andi one-half months (March 16 to August 31). j Ten moer ths (September 1L, 1967 to June 30, 1968) Table 8.11

Bahrain: awailn Shig eRgadri- and RF.&n,an"irn r^n"Man-W

umrnover Investment -eca Rmnlo(Bahrain Dinars3 ( n

1966 169 533,700 71,531 1967 181 658,100 60,608 1968 208 839,200 l0,604

1969 224 956,200 5,856

1970 247 918,200 21,810

1971 280 961 ,500 47,731

Source: Bahrain Snip Repairing and Engineering Company, Bahrain Bahrain: Construction Permits (Commercial and Residential)

Year Number

1965 865 1966 858 1967 904 1968 625 1969 411 1970 898 1971 950

Source: Ministry of Finance and National Economy, Bahrain _aIle 8iJ-.3 Pehrain: Rc4istered. Vehicles by Tyrpe of License, 1966-1K72

Throe of Ticense 1966 1967 1968 1969 .1970 197- 197?

Trivate Cars 6,027 6,L480 7,078 8,156 8,960 10,L?i' 12(b, Ta,i Cabs 810 877 901 911 915 90i 7

Vans Pt Lorries (1) 2,210 2,2b8 2,372 2,682 2,999 3,L',4,369 Private Buses 257 275 286 3W14 381 I 1-,) Public Buses 137 129 130 11i0 1IL2 1-L Mot"or Cycles 584 660 923 1,377 1,529 1.772 1,966

TOTAT (A) 9,41h 10,029 10,767 12.233 13,397 15,311 2I>

Note: (1! PT--ate and Public Vans and T,orries (2) Total does not include Motor Cyrcles.

Source: lmmigration Directorate, Public Security Department. Bahrain. Table 8.14 Vrehlli-cles New±l.y- IRegi s9uered,

Year Private Cars Taxis Vans & (1) Private Public Motor Lorries Buses Buses Cycles

1966 861 71 302 22 7 127 1967 987 87 283 34 3 176 1968 1,050 73 271 20 4 353 1969 1,444 42 415 70 25 503 1970 1,46b 44 500 52 7 503 1971 1,781 20 559 44 7 322 1972 2,305 34 653 97 - 303

Note: (1) Private and Public Vans and Lorries Source: Immigration Directorate, Public Security Department, Bahrain. Table 8.15 Bahrain: Vessels Calling at Bahrain Ports 1966-1971 (Number)

Type of Vessel 1966 1967 1968 1969 1970 1971 1972

Cargo Ships - Deep Water Jetty (Mina Sulman) 533 581 532 563 551 597 671 Cargo Ships - Sitra 35 143 38 33 23 6 n.a. Oil Tankers IOL 1h62 586 5141 1180 L.22 n_a. Other Vessels 41X2 532 4614 369 359 367 n.a. Naval Vessels 76 76 81 _ 98 85 r,aA Small Ships 239 224 205 290 273 268 n.a.

Source: Customs and Ports Directorate, Bahrain Table 8.16 Bahrain: Cargoes Importeed and Exported, 1966 - 1971

(Excluding Oil)

1966 1967 1968 1969 1970 1971

Importec

Deadweight Tons 263,448 232,772 229,332 217,374 323,519 354,153 Tons, measurement 395,658 378,174 368,857 378,109 501,285 542,611

Exported-

Deadweight Tons 12,644 23,092 13,386 17,128 12,117 23.665 Tons, measurement 24,264 41,264 30,788 37,317 24,756 46,301

Packages Handled

Thousand 5,871 5,403 5,564 5,261 6,425 5,625

Source: Customs and Ports Directorate, Bahrain Table 8.17 Bahrain: Movements in Bahrain International Airport

1967 1968 1969 1970 1971 1972

A4r Crg JLL.L 'jO.~ 1/ Exported --- 1,666 1,762 3,472 3,831 "Upior t' e_ ___ 2,44 2,7U7t 1 ,490 ,54>

Ci v 1± AircraL . loVIUv, ! (Bahrain Airport) 15 ,882 15,817 16,024 16,098 13,239 -'1,088 Passengers in Transit ('ahrail Airport) 7,w3y iu.,94' 122,132 98,4U4 135,012 392,035

1/ In thousand killos. r/ Incouing and Outgoing ~/ Figure reflects increased number frcm India and Pakistan following the indo-Pakistani 'War. Source: Statistical Bureau, Ministr-v of FL-inance and National Economy, Bah-a-In. Table 8.18 Bahrain: Pas sengers .rrving d eartig

1962 - 1972

_ ~~InCong _ __iJ __ Year _iTt eSea Air y T_lotal_ 1962 ,2666,297 124,323 72,904 61,007 123,911

1963 61,748 68, om 129,838 66,770 61,530 128,300

1964 68,546 70,01l2 138,558 73,685 63,859 137,544

1965 70,351 59, 105 129,766 74,396 57,740 132,136 1966 81,187 64,998 146,185 84,198 65,088 149,286

1967 89,200 (54,738 153,938 92,522 62,228 154,75C) 1968 101.,163 67,901 1,69,064 104,150 70,248 174,398

1969 104 ,404 655,196 169,600 106,705 63,084 169,785

1970 112,288 6t1,280 173,568 118,886 56,730 175,616

1971 127,878 60,335 1i88,213 129,622 60,771 190,393

1972 152,165 48,745 200,910 142,361 60,023 203,384

Source: Iiunigrati.cn Directorate Public Security DepartTment, BahraiLn. Bahrain: Table 8.19 Telecommunications 1966 - 1971

i9oo 197Iy o iyoo 170( 17(1

Telegraph - (Thou.- Paid words) 2,016 2,269 2,202 2,4I0 2,552 42,74 Telex - (Paid Minutes) 17,658 35,579 48,180 75,199 113,739 215,843 Radio Telepnone Prait Minutes) 136,249 153,743 173,626 239,111 377,046 643,482 Radio Telephone (No. of Calls) 33,149 36,419 40,446 51,209 75,141 110,308 Telephones - (Number) 4,750 5,400 5,779 6,330 7,046 7,734

Source: Cable and Wireless, Ltd. Table 8 .20

Bahrain: Electricity Production and Consumption

Installed Peak Units Number of Capacity Load Produced V Consumers Year (Megawatts) (Megawatts) (Mil-lion)

1960 26.3 14.2 49.2 20,440

1961 32.4 19.4 66.7 23,193

1962 32.4 25.0 85.6 25,949

1963 32.4 30.4 101.5 28,500

1964 38.5 34.1 115.4 29,500

1965 42.2 39.0 134.4 32,300

1966 55.1 40.5 146.6 33,300

1967 66.4 45.1 190.2 36,789

1968 66.4 53.0 216.2 38,300 1969 65.8 58.4 248.8 40,000

1970 79.8 60.8 243.3 42,000

1971 79.8 67.8 27Uf 44,00

11 7n71) I L.7- A2.- 71I _.) .*'~ . * '8.-/ 4u 6,o WJJ

Source: Statistical Bureau, Ministry of Finance and National Economy, Bahrain

1/ Exclnding losses in transmission.

2/ 7.2 million is the contribution of ALBA to the domestic consumption. Table 8.21

R QL&.41 'UJayly of ilU lemailtuU 'Lor E.L ulericity,U -D Consumer Groups in 1970

Demand Consumer Group kWh Sold Demandmummer W=07 per annum Day Day Eve. Eve.

Domestic 119,644,OO0 22.38 6.31 35.23 16.5o Commercial (under 100 kW) 17,221,000 4.54 1.35 2.52 1.17

General (under 100 kW) 2,038,000 0.74 0.18 0.31 0.10

Industrial( It n ) 29,495,000 9.62 8.33 2.50 2.04

Comercial(over 100 kW) 760,000 0.28 0.26 0.28 0.27 General ( f ) 184,000 0.08 0.01 0.o4 0.01

Industrial( " " ) 8,708,000 1.88 1.76 0.04 0144

Forces and Airport 54,752,ooo 10.80 4.50 11.30 5.30

Street Lighting 2,170,000 - - 0.72 0.72 BAPCO 3,800,000 0.54 0.54 0.54 0.54

TOTAL Consumers' Terminals 238,772,000 50.86 23.24 53.84 27.09

Deduct for intergroup diversity nil 2.52 1.16 2.69 1.4.6

SYSTEM LOSSES 238.772.000 48.. <1 25I63.22.08 2h;900.lOn 9.0k 1.16 9.46 1.71

TOTAL GENERATED 263,672,000 57.38 23.24 60.61 27.34

Source: Provided by the Mini stzy of Developmfent and .g-4 eering Sevices, Baain. Table 8.22

Bahrain: Distribution of Electricity to Consumers in 1970

1%yaber and Percentage distribution of consumers: Number %

Domestic (including landlords) 36,023 88.3

Commercia:l (under 100 kW) 3,560 8.7

General ( t tt t ) 280 0.7

Industrial ( " It ) 940 2.3

CommerciaL (over 100 kW) 1

General ( it" ) 1 -

Industria.L ( " " ") 9

Forces and Airport 2

Street Lighting 1

BAPCO 1

TOTALL 40o,818 10000

2. Frequeney Distribution of Domestic, Commercial and Industrial Consumers:

Dno.mesti-4c Oonsum.ers Comm=,erci ' and Tn,dustria'l Consumption in kWh/month % Average General Consumers Consumers Q' vera Ao-f--

Less'thaV n I 26. 7y 5

600v-2,100 8.8 9.9 16.8

Over 2,100 07 2.8 24.1

Source: Provided by the Ministry of Development and Engineering Services, Bahrain. Table 8. 23 Blahrain: Water ' and Utilization - 1972 j d December)

Suq al I]sa Manama Muharraq Rifaa Hid Jidhafs Ka.mis Town Sitra TCYrAL

,Connections to Houses 114,639 7,2114 2,205 962 1 4462 1,037 1,1473 8144 29, 836 Drinking Fountains 11 _-- .-- 11

Wash Places 4 2 1 --- 1 1 --- 10 22

Matams 47 8 ___ --- 1 7 11 1 7 91

Mosques 70 53 10 13 19 19 3 23 210

Parks 24 7 15 ------4 1 51

Graveyards 6 .3 1 34 -4 21 Fire Hydrants 72 48 9 5 12 11 88 .245

Bore Holes 18 7 3 1 2 1 2 1 35

PumpiLng Stations 15 5 2 1 2 1 2 1 29

PumpS 37 11 6 2 L. 2 4 3 69

Nlote. The above figiures apply to Water Supply Directorate of the Government of Bahrain.,

Source: Water Suppl;y Directorate, Bahrain. Table 8.24 Bahrain: Water Consumption

Million Imperial Gallons 196$ 1969 1970 1971 1972

.Thma:Ury 283.5 270.8 306.2 355.8 368.h

__ __ 27 276.0 2L8.2 292.0 324.2 3)L.1

309.1 3h6.l 350.4 376.9 393.2

APri1 311.6 338.7 3L8.9 36X.5 1103.1

May 33)-.8 380.1 395.8 h35.3 478.7

J11ne 3E6.1 37L.0 41 5.6 L36.7 47°=3

Ju1Av 377=7 ),6-34J8L4 6-

Au,gust 366=0 40Li 5 L45 3Ln8=9 h7h-6

Septem.ber 356.7 386.1 h21.8-435- 8 ).1t5-

October 3)46.9 360.7 _9- n28.6 462.8

N O-v Cm' b e 3093.7 375- I 3 39.0. necesmsbe- - iI 37E1.II I71 n 352.0i7A

TOTAL 3,947.9 4,243.8 4,605.0 4,710.6 5,070.4 Table 9 .1

Bahrain: Bapco Local Consumer Price Index

(3rd Quarter, 1969 = 100)

Year 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter

1965 98.1 93.5 91.0 92.2

1966 96.9 93.5 96.7 95.7

1967 97.5 99.8 100.8 101.0

1968 107.3 100.6 102.5 101.7 1969 106.3 103.1 100.0 101.9

1970 103.8 102.8 105.8 105.6

1971 110.7 108.2 111.3 112.0

1972 120.0 713.1 114.2 117.4

Source: State of Bahrain, Ministry of Finance and National Economy. Tnble 9,, 2 Bahrain: Governme:nt Monthly Wages by Grade and Step (in IBD) 197

Cradq r.S;-im I 1 st S+.,r 2nd Stei rd SStep Lith Ster 5tlh St -To 5th Steo 7th Step 8th Step 9ths St ^r

1 27.0 28.f 30.0 31 .I 33.0 3L!.5 36.0 37.5 39.0 !40.5 1'2.0

2 3E..0 3?7. r° 0 11 .9. .0 1I.0 147.0 zQO. 1 .0 E .0

3 !..0 12.cE o.0 5,2 5.0 57.5 60.0n 2.5

5,1! ^ ,E,5?.f6 tR-* ,EvO.0 fB2.0 6E.0 68.o 71.0 7!.0 77.0 8e.o r tn~~~1.rr) 3E$,) 7. 7 1 . 7.5f.' ;3.E5Q, )59- 77.t• ~~~81.0 8L9 8. n 91 .5 5

67t'.n 'P .o °7.1.0 9gr.0 99/sry 107.0 1 11. 11

7 cc'. nl lor).fr 10 1 7. 1115.0 1 2K O 130.0 1i35 1)10.0 lh5,.

12 .) 12.0 n1f* ½'l.0 1 (0.0 1, 6. 0 162.0 168.0 17?.o 180.o

o '-;115n. Ef7. V3 1 72 .* 189.fn 1 87A5 19KGO 2(2. 210.0 2117.5 ?95.0

10 1R, 8 rl 1ofE. 9 2 0.f. 21 E 2) E,, ? 3K.0 2)! .0 2 5 5. 0 265.0 271% 0 E

11 23¢ o 2R 961 .n 21.0 287.07On 213.0 ?24.0 W9.0 ,2.0

19 27r 2 1O.' 33O.0 31W.0 3 60.r 37K 3.9.0 ! 0,0 )?0.n

4 SeThrni~'rt > r,f' 1'arj\e <-an ?Nptioa-al Ecnnon"'. Rahrair. Table 10.1 Bahrain: Population 10 Years of age and over bx- Lite^.:-S2- Nationalitv 1971

Nationality and Sex Literate illiterate (2/3/)XICO (1) (2) (Z)

Bahraini Males 36,611 23,814 60b'O.5 39.4 Females 19,647 39,365 5jOi 2 66.7 Total 56,258 63,179 ll9,L37 52.9

Non-Bahraini Males 9,598 13,326 22,924 58.1 *'~~~~ ~~~ -r QsIGA o-, -Aqs . _; Total 14,542 16,418 30,960 53.0

Total Males 46,209 37, 140 83, 349 44.6 Females 24,591 42,451 67.04h3 63J3

SourceBur , Stat_stical A a Fan A, omn raln r.on n ivota | (VIV [7 t,) ), --7 f ~ ) . 7

Source: Statistical Bureau, Mnimstry of F;nHMnce and National Economy, Bahrain Table 10 . 2 Bahrain: Number of Government Schools

Type of School 1964-65 1966-67 1967--8 1968-69 1969-70 1970-71 J1971 -72

Pri.mary Boys I2 4h2 42 42 4( 42 13 Girls 28 24 26 29 30 3 1 32 Tottal 70 66 68 71 70 73 75

Intermeda iat BoDYs 3 7' 12 1 13 12 Girls 1 7 8 9 11 12 9 Total 4 14 16 21 26 2.5 21

Sec:ondary (2) Boys 1 3 3 3 :3 4 5 (General) Girls 1 3, 3 3 3 3 6 Total 2 6 6 6 6 7 11

Technical Boys 1 1 1 1 2 2 2 Religious Boys 1 1 1 1 I 1 1 Higher Education(3) Boys 1 1 1 i 1 1 GJirls - 1 1 1 1 1 Others (4) Boys - -,.' ., 1 1

GrRA.ND NTOTAL:, 78 89 94 102 107 111 113

Note: (1) There are aLso seven, private schools and three kindLergartens undier the supervision of -the Ministry of Education. (2) In some of the :lnte:ned:iate schools, there are some primary classes ancd in some of the secondary schools, there are some intermlediate classes. (3) Teacher-Training Institutes. (4-) Isa Townr whiLch -includes primary, intermediate and seecondary classes.

Source: Statistics Division, Mlinistry of Education, Bahrain. Table 10.3

Bahrain: Teachers by Nationality ard Sex 1966-67 -1971-72

1966j'67 1967'68 1i968'/69 19'9/70 1970/71 l9?1/72 Bahraini Males 919 1,020 1,080 1,107 1.132 1,021 Females 53 512 619 691 734 685 Tota] 1,372 1,532 1,699 1,798 1,866 1,706 lion-Bahraini. Males 267 276 272 262 30L 307 Females 261 27b 265 252 260 23h Total 528 550 537 51h 57h 5J11

Total Males 1,186 1,296 1,30? 1.369 1, h6 1,328 Females 71l, 786 88L Qb3 991, 919 Total 1,900 2.08? 2,236 2,312 2..30 2.207

Sourca Statis. t,is D-~vision_. Minist,r of F,ducation; Rqhr.,:n. Table 10 .4 Ba'llrain: Tcaching Staff Woricing for Ministry of Dilucatic-bw Nationa ity an. Sex l99,/70 - 1971/72

1969/70 1970/71 1971/70 IT'ationality Mlale Fema' e Total. Male Female Total Male Fema.le Total

Pahrai.ni 1,10? 691 1,798 1,132 73b 1,866 1,021 685 1,706

Palestinian 8L 56 1i0 95 74 169 85 65 15t0

Jordanian 89 70 159 97 56 153 103 28 131

Rgvptians 07 87 13h 66 86 152 f9)b 113 197

1chan se 18 n 26 15 9 21L 10 1 11

.'yrian -- 1 1 -- 1 1 -- 1 1

Iraqi. 2 7 -- 14 I -- 3

KuwPa¶ ti. ------1 1

Studi 1 -- 1 1 1 1 ------

0--ani -- 1 1 -- 9 2 -- 1 1

T,-'3 151 1S3 15 18 . 11 15

Paki!7tani 12 L 9 lb 2 6

KTrit,.Eh 12 1 13 19 22 1f 22

Ti-'r 1 __ 1 -- 2 1 --

r _.AI, .... __1 1 1 1 S~~~ ~~~~~ ~ -- ... I - - -

T2TA,4 1,3A9 9!!QL 2,313 1 .1v!6 99)! 2,1.328 '19 2.2)17

Sol-i-ef:: 'tatfIct±' s *r-~.n.Tvi n{ Table 10.5 Bahrain: Number of Students by Level in Government Schools (1966/67 - 1971/72)

Number of Students Level & Sex 1966-67 1967-68 1960-69 1969-70 1970-71 1971-72

Primary BoYs 19,532 20,788 20.110 19.465 20,590 21,197 Girls 13,297 17,379 14,636 14,951 15,523 15,755 Total 32,829 35,176 3h.746 34,.16 36,113 36.952

Intenrediate Boys 3,251 2,857 3,032 3,873 4,268 4.,o45 (General) Girls 1.6h2 2.066 2.322 2,689 3.020 3.221 Total 4.,892 4,923 5,354 6,562 7,288 7,266

SecnAndarv Boys 1,859 2, 310 3,001 2,'590 2; 731 2;425 (General) Girls 880 1,380 1,904 2,432 2,511 2,897 Trot+.al 21971O 3,690q6Q 4,24 322

Technical Boys 513 476 544 470 439 601 Religious Boys 1146 1 6 130 11 150 138 Commercial Boys 255 252 332 348 452 524 Gi-rl- s - - - - 38 10 Higher Ed. Boys 25 66 94 110 138 146 C-rl = 37 95f 1207 151A166

Total 41,400 44,757 46,200 47,196 50,011 51,224

Arce:VVE~~~~ LJICU|Sl>*§~~~~~1at W%LS4. LL L l ' . 1 -JiVO. o. s ?4Jrs ,-4Lc.wo : : vA.M 4 DLn_A_^ L sv a;E1 Table lo.6 Bahraini Graduates by Subjects Studied ± ~ n7 J.7k f)

1969 1970 1971 1972_ Specialization M. F. T. M. F. T. M. F. T. M

History 2 1 3 1 5 6 1 _ 1 1 5 6

Lagiguages 3 - 3 2 2 4

Phiosophy 2 3 5 3 1 4 - - 2 -

Ehioation 2 _ 2 - _ _ 1 3 4 1 2 3

Psychology ------1 3 4 1 1 2

Commerce 5 - 5 3 - 3 6 1 7 3 5 8

Economics 1 1 2 - - - 2 - 2 2 - 2

Geography 1 - 1 - 1 1 - - - - 2 2

Politics - - - 3 - 3 3 - 3 1 - 1

Public Adminis- tration 1 - 1 1 - 1 4 - 4 - - -

Sociology - - - 1 5 6 1 4 5 3 5 82/

Journalism - - - - 2 2 2 1 3 - - -

Law 2 - 2 2 - 2 - - - 5 1 6

Arts ------1 - 1 - - -

Biology ------1 1 1 - 1

Chemistry - - - - 2 2 1 1 2 4 - 4

Phkysics ------1 1 - - -

Geology 2 - 2 - - - 1 - 1 4 - 4

Engineering Sciences - - - 1 - 1 - - - 4 - 4

Statistics ------1 - 1 3 1 43/

Medicine 4 - 4 1 - 1 5 3 8 1 - 1

Dentistry - - - 1 - 1 2 1 3 - - -

Agronomy 3 - 3 1 - 1 - - - 1 _

Total 28 5 33 20 18 38 35 22 57 42 26 68

Source: Statistics Division, Ministry of Education, Bahrain.

1/ Islamic Principles. Iclu-4dJing,T-/ .e Jem. 'e s uxLdent o.f AUL ---IX . 3/ Mathematics. Table 10.7 Bahrain Graduates by Subjects Studied & Countries 1960-1971

Total Specialization Lebanon A.R.E. Iraq U.K. Kuwait Other M. F. Total

HUMANITIES 16 21 9 1 10 2 35 24 59 History 6 4 1 - 2 1 7 7 14 Languages 5 13 8 1 3 1 23 8 31 Philosophy 3 2 - - - - 4 1 5 Psychology 2 2 - - 5 / - 1 8 9

EDUCATION 12 2 6 - 3 - 14 9 23 Education 11 - 6 - 3 - 11 9 20 Physical Education 1 2 - - - - 3 - 3

FINE ARTS 5 5 4 3 - - 16 1 17 Arc-hitr ture 4 14 2 3 - - 13 - 13 Painting 1 1 2 - - - 3 1 4

SOCIAL SCIENCES 32 57 37 2 3 6 111 26 137 9nmmseree22 Q 15 1 - 3 146 4 50

Economics 8 5 10 - 1 _ 19 5 24

eogr_aphy - 1 .1 - 1 - 2 1 3 Political Science 1 4 3 - - 3 10 1 11 Public Adm-inistrantion 9 1 1 1 - - 12 - 12 Sociology 5 18 6 - 1 - 18 12 30 Statistics - 1 1 = - 2 Journalism - 5 - - - - 2 3 5

LAW - 19 6 1 - 5 31 - 31

NATURAL SCIENCES 10 6 1 - 2 2 18 3 21 Biology I - I - - 1 2 1 3

Chemistry 5 3 - - 2 1 10 1 11 Geology 3 3 _ _ _ _ 6 - 6 Physics 1 ------1 1

ENGINEERING - 1 - 10 - 1 12 - 12

MEDICAL SCIENCES 17 15 6 - _ 1 35 4 39 Medicine 10 12 3 - - 1 23 3 26 Dentistry - 3 2 - - - 4 1 5 Phamac-y 5 - - - - - S - Public Health 2 - 1 - - - 3 - 3

AGRICULTURE 2 2 6 - - - 10 - 10 Aaronomv 2 2 4 - - - 8 - 8 Veterinary Medicine - - 2 - - - 2 - 2

MILITAff SCIENCE - 3 5 1 _ _ 9 - 9

Total 94 131 80 18 18 17 291 67 358 Source: Statistics Division, Ministrv of Education, Bahrain.

1/ Includes Philosophv. Table 10. 8 *ahra.n-s Grawduat.-nF at FTorei-Sn Universitips or Hioher Institutes

_9_49 - 1L972 1

- 197 1969, _ _ 21970 1971 Fer.ales Total Males F_males Toteal Coim+.r4y lTa's F'erales Motalales Fe.rnal. Total Ma>lns

24 8 1 9 Eg-,npt 11 1 12 7 6 13 14 10 - 9 8 2 10 Iraq 9 3 12 4 - h 9 2 19 3 3 6 Lebanon 8 1 9 6 7 13 17 10 15 18 20 38 Kuwait - - - - 5 5 5

Tndi.a - - 3 - 3

- - Others - - - -

57 TCTAT. 28 5 33 2 18 38 35 22,

1 / Data available. only for the M`4inistry of FAucation, Bahrain.

2 / One student was studying in the Uni-ted Kingdom.

Source: Statistics DiviLsion, Ministry of Education, Bahrain. Tnblh 10=9 Bahrain: Expected Growth in Number of Students and Classes and the Expected Needffor -" Prmnr Rr1hininn- 197Q/71_1Q97Q/F)

Zear NM . be- ofrtN,e NluM...... ber offc 11--bA -P Req115i-red ...... Iv^loble Students Classes Periods Teachers Teachers Teachers 21 (Students & Teachers)

1970/71 20,736 542 18,428 822 822 --- 1971/72 21,192 554 IU,B3O 840) 8C 39 1972/73 21,658 566 19,244 858 781 77 1973/74 22,134 578 19,652 876 761 i 1974/75 22,621 591 20,094 896 742 1975/76 23,119 604 20,536 916 723 193 1976/77 23,628 618 21,012 937 705 232 i977/( 24,148 631 21,454 957 687 270 1978/79 24,679 645 21,828 974 669 305 1979/80 25,222 659 22,406 999 653 346

Pemales (Students & Teachers)

1970/71 15,569 398 13,552 650 650 __ 1971/72 15,974 410 13,940 670 630 4O 1972/73 16,3b9 420 14,280 687 611 76 1973/74 16,815 431 14,654 705 593 ^l12 1974/75 17,252 442 15,028 723 575 1L8 1975/76 17,700 454 15,436 742 558 184 1976/77 18,160 466 15,844 762 541 222 1977/78 18,632 478 16,252 781 525 256 1978/79 19,116 490 16,660 801 509 292 1979/80 19,613 503 17,102 822 494 328

.!Y~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ y/ .M61g: Ai-",n1 rate of incrDeaa fo a+-dents s 2.2w Average class-room size s 38.25 Averare teaehAr8 load of teaching I 22. Planned student/teacher ratio s 1:25 Tmber of ore sent teachears decreases bv 2.5% as a result of death ad leaving service. ?/Females: Average class-room s 39 students Avrerawa tRaelin loadl *a 208vk Planned student/teacher ratio 1:241 ¢vNmnbAr of tPAflher d*Qie~a8r by 3% a8~ a result of death anM leaving service.

Number of students increases at the rate of 2.6% annually.

&mirt--i t.A+Aim nf- 'RA a4m M nii _ ntrf VAtin+nie Table i0.10

Bahrain: Expected Growth in Nuwber of Classes and Students and the Expected Need for Teachers for Intermediate Edubcation, 1970/'71-1979/80

Expected shortage Available for teachers Number N-xber Number teachers Shortage when non- of of of Required Non- for Bahrainis Yearw students classes periods teachers Bah. Bah. Total teachers are replaced a! ,ia1e (Students and Teachers)

~9711/.71 4,377 121 4,114 231 164 67 231 - 67 '1V71/72 4,770 131 4.,454 250 160 67 227 23 90 1.072/73 5,220 143 4,862 273 156 67 223 50 117 297VV,L 5,670 156 5,304 297 152 67 219 78 145 _-97b/5 6,lR0 170 5,780 324 148 67 215 109 176 197N/76 6,730 186 6,324 355 144 67 211 144 211 -976/77 11,000 304 10,336 580 140 67 207 373 440 1.977/78 11,990 331 11,254 632 136 67 203 429 496 1c) 78/79 13,070 361 12,274 689 132 67 199 490 557 1-979/80 14,240 393 13,362 750 128 67 195 555 622

F2m a½ - (Students and Teachers)

%070/71 3,020 86 2,924 153 62 91 153 - 91 1971/72 3,420 97 3,298 173 60 91 151 22 113 1979/73 3,875 110 3,740 195 58 91 149 46 137 197/74 .4,390 125 4,250 222 54 91 143 75 166 i97)!/7N 4,970 142 4,828 252 54 91 145 107 198 197C/76 5,630 160 5,440 284 52 91 143 141 232 1976/77 9,570 273 9,282 486 58 91 141 345 436 1977/78 10,845 310 10,540 552 49 91 140 412 503 1978/79 12,285 351 11,934 625 48 91 139 486 577 °979/80 13,920 398 13,532 708 47 91 138 570 761

Source: State of Bahrain, Ministry of Education.

Malesi Number of students increases at a rate of 9% annually. average teachers load in the intermediate schools: 17.8 Planned teacher/student ratio: 1:19 Size of classroom : 36.17 Intermediate cycle will be extended to become three.

b/ Females: Average annual increase of students: 13.3% Average size of class : 35 students Average teachers load : 19.1 per week Planned teacher/student ratio 1:20 Number of Bahraini. teachers decreases by 3% annually as a result of death and leaving of service. Intermediate cycle will be extended to 3 years as from 1976/77. Table 1C 11 Bahrain: GoVernment Health Estab m shments by TyDe L950 - l971

1950 1960 1965 1969 1970(1) 1971

,iospitals 8 2.0 l 6 3 7

Health Centers with Maternity beds () () () 3 2 3 (9) (1') (12) Health Centers without Maternity ( ) ( ) ( ) beds 11 10 8

Public Health Centers 1 1 1 1 1 1

School Clinics 10 16 16 4 4

Note: (1) There was no reduction in facilities in 1970 and the smaller figures are simply the result of re-organization. Source: Ministry of Health, Bahrain TableC 10.1 §Dahrain: Beds in Curative Health Directorate Hospitals, 1967-71

Cat egGy Number of Beds

1967 1968 1969 1970 1971

te,c a-L 110 .10 1041 97 97 .-.rji:,cal -1c 111 123 103 103 0u ter-rls anrd CGynoco...ogy 202 256 256 231 231 Pedlatric 55 75 74 88 88 Eye Diseases 33 42 42 42 42 ,lar, Nose, Throat 13 12 12 1J 1) Chest Diseases 134 134 134 112 112 Ger2at-ric 16 16 42 42 Psychiatr-ic 120 136 136 156 156 Tnte.nsive Care Unit , 8 8 8 8 Sick Staff 12 12 12 2 2 Pol1ice 12 12 12 12 12

TOTAL 822 924 930 907(1) 907

Note:- (1I The red-ction total' ls bec.ause thlere a e 2.1. 'bedsoutJl of use. Source: Ministry of Health, Bahrain. Table 10A13 BahxraI: Government iledlcal Staff (End December 1967-71) -1,67 1.968 4 ,t9 70? 19

Physicians, Male 50 61 69 6L 67

P-ysicn,ans, Female 32 28 23 26 32

Dentists 2 2 2 3

Pharmacists 51(1) 41 41, 37 35

Pharmacist Trainees -- 18 18 31 28

Laboratory TecHniacians 40(1j 2L 26 24 21 rLborator ApnrTehn-tICes or Auxiliaries -- 17 15 20 25

Radiographers 2IJ(1) 13 11 11 10

Radiograp'ner AnDrentices or Aui.liaries _ 11 14 14 17

Physiotheranists _ 7 9 9 9 Physiotherapi'st Apprentices or Auxiliaries 2 2 2

Matrons 10 10 10 9 8

Sister Tutors 39(2) 3 4 4 3

Sisters (-ale and female) -- 64 59 57 55

Male IbUrses, Jtunior & S'enior 116 108 119 127 130

Female Murses, Jirnior & Senior 221 284 309 300 314

Dressers and Orderlies Male 120 126 120 100 109

Dressers and Orderlies Female 107 148 167 1145 158

Administration and Clerical 95 133 130 119 127

Carterin, - 82 76 52 52

Nai2ntenance -- 112 116 115 106

Gleanes __L28 386 367 Ctewrs 736(3) 180 18o ?wf

ToTAl.l',I 5(1,643 1,878 1 ,913 ,90o 1,979q

N,ie:.: (1) ln.cludes t In es, ;..,r 1Tic;. or i1- arie.s (?) iIneJu6es -i '. (3) -cl½.;es Catc n, r.intEn -fn(i.e &nd CIean Staff

Source: Tlinistry of -;e;lth,Pbhrain.