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U.S. Department of State
Bahrain 1996 Country Commercial Guide
Office of the Coordinator



                    TABLE OF CONTENTS

I.    Executive Summary  
II.   Economic Trends and Outlook
III.  Political Environment
IV.   Marketing U.S. Products and Services
V.    Leading Trade Prospects for U.S. Exports and Investment
VI.   Trade Regulations and Standards
VII.  Investment Climate
VIII. Trade and Project Financing
IX.   Business Travel
X..   APPENDICES

A.  Country Data 
   1. Profile -- population and growth rate
   2. Religions
   3. Government System
   4. Languages
   5. Work Week

B.  Domestic Economy 
   1. GDP and growth rate 
   2. GDP per capita
   3. Government spending as a percent of GDP
   4. Inflation (percent)
   5. Unemployment (percent)
   6. Foreign exchange reserves
   7. Average exchange rate for US$ 1.00
   8. Debt service ratio 
   9. U.S. economic and military assistance,

C. Trade 
   1. Total country exports
   2. Total country imports
   3. U.S. exports
   4. U.S. imports

D. Investment Statistics 
E. U.S. and Country Contacts
F. Market Research
G. Trade Event Schedule     



I. EXECUTIVE SUMMARY

Although the Government of Bahrain has controlling interests in many of 
the island's major industrial establishments, its overall approach to 
economic policy, especially those policies which affect demand for U.S. 
exports, can best be described as laissez-faire.  Except for certain 
basic foodstuffs, the price of goods in Bahrain is determined by market 
forces, and the importation and distribution of foreign commodities and 
manufactured products is carried out by the private sector.  Owing to 
its historical position as a regional trading center, Bahrain has a well 
developed and highly competitive mercantile sector in which products all 
over the world are represented.  Import duties are primarily a revenue 
device for the government and are assessed at a ten-percent rate on most 
products.  The Bahraini dinar (BD) is freely convertible, and there are 
no restrictions on the remittance of capital or profits.  With the 
exception of the petroleum sector, Bahrain does not tax either corporate 
or individual earnings.
 
Over the last two decades, the Government of Bahrain has encouraged 
economic diversification by investing directly in such basic industries 
as aluminum smelting, petrochemicals and ship repair; and by creating a 
regulatory framework which has fostered the development of Bahrain as a 
regional financial and commercial center.  Despite diversification 
efforts, the oil and gas sector remains the cornerstone of the economy.  
Oil and gas revenues constitute the majority of governmental revenues, 
and oil and related products account for about 80 percent of the 
island's exports.

Bahrain's total imports, excluding oil, weapons, and aircraft (not 
reported in Bahraini trade statistics) amounted to $2.5 billion in 1994.  
By Bahrain statistics, the U.S., as in other recent years, was the 
number one source of imported goods for Bahrain, selling the country 
goods worth $402.8 million, 16.0 percent of total imports in 1994.  By 
U.S. Department of Commerce figures, U.S. exports of goods of all 
descriptions to Bahrain in 1994 were higher, amounting to $442 million, 
but represented a drop of 32.1%  percent from 1993's total of $653.1. 

U.S. sales to Bahrain benefit from generally warm U.S.-Bahraini 
relations and a local perception that U.S. firms offer high-quality and 
reliable prices, with the relative weakness of the dollar also helping 
to make American goods more price-competitive, particularly in relation 
to Japanese goods.  Not included in the figures for trade in goods is a 
large U.S. advantage in the sales of services, particularly in 
engineering, financial, and petroleum services.

As the headquarters of Gulf Air (owned jointly by Bahrain, Qatar, Oman, 
and Abu Dhabi), Bahrain provides a major market for aircraft sales; Gulf 
Air spending for aircraft 1993-95 is expected to total over $ 1.7 
billion, with a significant portion of that going to aircraft from 
Boeing.  Planned or proposed projects such as new electricity and 
desalination plants, a new container port, new hospitals, an airport 
expansion and a refinery upgrade offer major possibilities for sales in 
related sectors. On a long-term basis, U.S. products have done well in 
the categories of information technology, financial services, 
telecommunications, furniture, air-conditioning equipment, and vehicles.

High value U.S. food products with strong market potential in Bahrain 
include frozen poultry (parts and whole birds), beer, eggs, fresh apples 
and pears, hot sauces, salad dressings and dips, snack foods, fruit 
juices, canned fruits and vegetables, frozen beef, almonds and coffee 
whiteners. In addition, growth in the local food processing industry is 
driving demand for semi-processed products such as beverage bases, 
vegetable oils, raw peanuts, specialty flours and a variety of food 
ingredients.

Bahrain offers what many foreign businessmen judge to be among the most 
free and orderly business environments in the Gulf, or, for that matter, 
in the Middle East-South Asia region, and around 80 US firms have set up 
regional headquarters here, including AT&T, American Bureau of Shipping, 
American Express, Chase Manhattan Bank, Chemical Bank, Citibank, Compaq, 
Cray Research, Digital Equipment, Grumman, Merrill Lynch, Shearson 
Lehman Hutton, Smith-Barney and Sprint, Telerate and UPS.

In 1994-1995, Bahrain experienced several months of civil unrest. While 
the disturbances were directed primarily against the regime, some 
expatriate property, including homes, cars and places of business, were 
also damaged or destroyed by rioters and arsonists. Firm government 
security measures, combined with some steps to address underlying 
issues, appeared to have succeeded in restoring normal order by June, 
1995.

During the first half of 1995, sales in most categories were slower than 
usual; however, with a return of domestic order, consumer confidence is 
also returning. Many observers in the business sector anticipate a 
rebound effect in the final quarter of the year.

Country Commercial Guides are available on the National Trade Data Bank 
on CD-ROM or through the Internet. Please contact STAT-USA at 1-800-
STAT-USA for more information. To locate Country Commercial Guides via 
the Internet, please use the following world wide web address: WWW.STAT-
USA.gov. CCG's can also be ordered in hard copy or on diskette from the 
National Technical Information Service (NTIS) at 1-800-553-NTIS.



II.  ECONOMIC TRENDS AND OUTLOOK

MAJOR TRENDS AND OUTLOOK
According to provisional data from the Ministry of Finance and National 
Economy, Central Statistics Organisation (Statistical Abstract 1993), 
GDP at current prices (not discounted for inflation) increased by 4.85 
percent in 1993.  The crude oil and gas sector, which accounted for 16.9 
percent of the GDP, registered an increase of 4.9 percent in 1993.  
Other sectors of the economy registered  economic growth in 1993 as 
measured by GDP in current prices including manufacturing, which 
increased by 2.2 percent, and transport and communications by 4.7 
percent. Non-financial trade and services went down by 1.8 percent to 
12.2 percent. Although no figures are available, it is understood that 
construction starts also are down for 1994 and the first half of 1995. 
Estimates of real GNP growth (discounted for inflation),  are difficult, 
as the consumer price index appears consistently to underreport 
inflation.  

PRINCIPAL GROWTH SECTORS:
The Aluminum Sector:  Using the advantage of relatively low energy 
costs, Bahrain began to develop its aluminum industry over 20 years ago.  
Over the years, the sector has expanded from basic smelting to a host of 
downstream operations, including a rolling mill, an extrusion plant, a 
cable plant, a factory producing aluminum powder, and two automobile 
wheel factories.  Gulf Aluminum Industries, a Bahraini-Italian joint 
venture with capital of $32 million, is expected to begin operations in 
1994 of an extrusion plant which will produce 12,000 metric tons per 
year of heavy aluminum sections for use in the transportation sector.  
In November, 1992, the smelter operation, Aluminum Bahrain (ALBA) 
completed a 235,000 metric ton/year additional production line as part 
of a $1.5 billion expansion plan which has more than doubled the plant's 
rated capacity from 184,000 metric tons per year to 460,000 metric tons 
per year. According to reports, this capacity is oversubscribed by local 
and international demand, and ALBA now intends to further expand 
capacity by 36,500 metric tons per year in the first quarter of 1997. 
(Output from the plant has consistently been above rated capacity during 
the 18 years through 1993.)  The Government is anxious to attract 
additional downstream investment in the aluminum sector, including 
additional factories using molten aluminum supplied directly from ALBA's 
smelter, and individual downstream aluminum industries are also seeking 
to expand, through joint ventures, their repertoire of products and 
markets.

The Financial Sector:  In the last twenty years, Bahrain has developed 
as a financial center for the Gulf region and much of the Arab world.  
Bahrain's financial institutions attract funds from the Gulf and, unlike 
the situation in neighboring Saudi Arabia, there is no serious 
sensitivity to the use of interest in banking operations in Bahrain.  As 
of the end of 1994 the assets of the 50 off-shore banks in the country 
totaled US$ 64.5 billion, according to the Bahrain Monetary Agency's 
Annual Report.  

As of the beginning of 1995, there were 19 full commercial banks, two 
specialized banks, 50 off-shore banking units, 39 representative 
offices, 23 investment banks, five foreign exchange and money brokers, 
and 27 money-changing companies registered in Bahrain.  In order to 
maintain and promote Bahrain's pre-eminence as a regional financial 
center, the Ministry of Finance and National Economy has established a 
Capital Markets and International Financial Services Unit to develop and 
further diversify Bahrain's international financial services sector.

A regulation issued by the Bahrain Government in 1995 will allow the 
Bahrain Stock Exchange (BSE) to list foreign companies, bonds and 
investment funds. Trading in these foreign investment vehicles will be 
open to everyone, including resident and non-resident foreigners. 
Listing requirements were to be completed by June 1995. Foreign 
nationals resident in Bahrain for more than one year are permitted to 
purchase shares in 31 of the 35 Bahraini companies listed on the BSE; 
collectively, expatriates can own up to 24 percent of the shares of 
those listed Bahraini companies.

The Petroleum Sector:  Moderately rising oil prices in 1994 created a 
breathing space for the oil sector of the Gulf region.  While the 
business opportunities in this sector apply especially to companies 
using Bahrain as a regional sales and support center for the Gulf, 
Bahrain does have a domestic oil and gas industry, including a refinery 
which is in need of a major upgrade (see "Leading Sectors for U.S. 
Exports and Investments", Ch. 5).  

Despite the government's attempts to diversify, oil and gas continue to 
play a dominant role in the island's economy, providing the majority of 
the Government's revenue.  In addition, petroleum exports (including 
100,00 barrels/day from an offshore field, Abu Sa'afa, shared with Saudi 
Arabia) constitute 66 percent of total exports in 1993.  In the past 
decade, domestic crude oil production has been held steady at slightly 
more than 40,000 barrels per day of domestic production from the onshore 
Awali Field, with 14,696,000 barrels produced in 1994.  Gas production 
in Bahrain in 1994 amounted to some 351,265 million cubic feet, compared 
to 346,047 million cubic feet in 1993.  Bahrain uses all of the gas 
domestically, except for exports of liquified petroleum gas (LPG) and 
gas-derived petrochemicals.  About a third of non-associated gas 
production is reinjected into the Awali Field to maintain pressure 
there.

In addition to producing crude oil from the Awali Field, Bahrain is a 
major refining center for Saudi crude, which is transported from Saudi 
Arabia via pipeline.  Bahrain's oil refinery, in operation since 1932, 
is the oldest refinery in the Gulf.  It is owned and managed by the 
Bahrain Petroleum Company (BAPCO), a joint stock company owned 60 
percent by the Government of Bahrain and 40 percent by the U.S. firm 
Caltex.  The refinery had an average daily throughput of 247,301 barrels 
per day in 1994.  Approximately 216,000 barrels per day consisted of 
Arabian Light crude oil imported from Saudi Arabia's Eastern Province, 
while the remainder came from Bahrain's Awali Field.  Refinery output 
spans a broad range of products, and the refinery is known in industry 
circles for its production flexibility.  Production of unleaded fuel is 
currently under study. Under current plans, a modernization program for 
the refinery is likely to be divided into two or three phases due to the 
lack of readily available state funding. The original plan to modernize 
the refinery would have cost an estimated US$ 800 million, and revised 
plans called for the modernization program to be divided into two or 
three phases due to the lack of readily available state funding. The 
first phase of the modernization program is estimated to cost US$ 200-
300 million and would require at least two years to be completed. It 
would involve building a new single crude unit to replace the four 
original crude units which date back to the 1930's. By having one unit, 
BAPCO would increase efficiency and reduce maintenance costs. Gasoline 
production would also be upgraded. The entire project is on hold, and a 
next-step decision is unlikely in 1995.

In 1991-93, a U.S. Company, Harken Energy Corporation, explored for oil 
both off-shore and on Muharraq Island, on the basis of a production-
sharing agreement with BANOCO.  The first two wells, one on Fasht al 
Jarim, a shallow reef north of Bahrain, and one on Muharraq, were "dry 
holes."  Seismic data is being studied to determine a site for a 
possible third well.

Food Processing: The local food processing industry will continue to 
expand, offering export opportunities for semi-processed agricultural 
products. Major growth sectors are beverages (juices and soft drinks), 
dairy products (ice cream and yoghurt), dry pulses and snack food.

GOVERNMENT ROLE IN THE ECONOMY
The Government of Bahrain has set out to make the country into the 
Singapore or Hong Kong of the Gulf, and, hopefully, of the whole Middle 
East plus South Asia.  Although at present wholly or partially 
government-owned enterprises dominate the economy, laws and regulations 
have been overhauled and rationalized in recent years, particularly 
since 1990, in an attempt to make the business climate as welcoming as 
possible to free enterprise and to attract foreign companies.  Foreign 
investors are welcome to set up industries here, with 100-percent 
foreign ownership permitted for export industries.  Commercial firms are 
likewise encouraged to set up 100-percent foreign-owned regional offices 
and distribution centers here.  With government encouragement, Bahrain 
has long been established as the principal banking and financial center 
of the Gulf region.  The Bahrain Promotions and Marketing Board, an 
office set up under a special board with interministerial and joint 
public and private membership, is responsible for coordinating efforts 
to attract businesses and investments. 

BALANCE OF PAYMENTS SITUATION
Bahrain's trade statistics for 1994 indicate that the country suffered a 
balance of trade deficit of $131.1 million, increased from $121.2 
million in 1993. 

INFRASTRUCTURE
Bahrain was a regional leader in providing education for all citizens; 
the first public school was established in the 1920s for boys, with a 
girls' school following a few years later; the literacy rate is the 
highest in the region. The island is now well supplied with public and 
private schools. Throughout the oil boom years, the country invested in 
the development of hospitals, road networks, telecommunications 
facilities, public utilities, ports and other infrastructure projects, 
all of which combine to give major portions of the island the aspect of 
a modern technocracy. However, current restrictions on the government's 
budget have reduced infrastructure spending at a time when further 
investments are required to meet rising demand; the government is 
currently seeking private sector funds to develop electricity generation 
and water desalination units, without which Bahrain's progress will be 
slowed.

Bahrain has a highly developed infrastructure, including a state-of-the 
arts telecommunications system and good roads connecting the various 
population centers.  The Bahrain International Airport is in the final 
stages of a major expansion and modernization, and, although the port is 
adequate for current volumes of sea-borne freight, there are plans to 
construct a second port, with significantly larger facilities for 
container handling, to allow for continuing industrial development.



III.  POLITICAL ENVIRONMENT 

The U.S. has traditionally enjoyed warm relations with Bahrain, even 
during periods of strained or broken relations between the U.S. and many 
other Arab countries.  The U.S. Navy's operations in the Central Command 
area (the Gulf, the Western Indian Ocean, and Red Sea) have centered on 
Bahrain since the 1940's.

As a member of the Arab League, Bahrain is committed to enforcement of 
the primary aspect of the League's boycott of Israel; however, in 
recognition of the greatly-changed situation between Israel and the 
Palestinians, Bahrain has ended enforcement of the secondary and 
tertiary aspects of the boycott.

Bahrain is governed as a traditional emirate, under the Al-Khalifa 
family, which has ruled the country for approximately two hundred years.  
The current Emir, Shaikh Isa bin Sulman Al-Khalifa, in office since 
1961, rules Bahrain with the assistance of his brother, the Prime 
Minister; his son, the Crown Prince; and an appointed Cabinet of 
Ministers.  In 1975, the government suspended some provisions of 
Bahrain's 1973 Constitution, including those articles relating to the 
National Assembly, which the government disbanded in the same year.  The 
Consultative Assembly (Majlis Al-Shura), which was established in 1993, 
is wholly appointive.  There are no political parties, and no elections 
for government positions.

In 1994-1995, long-standing grievances of the majority Shia Arab 
population of Bahrain erupted into several months of civil unrest. While 
the disturbances were directed primarily against the Al-Khalifa regime, 
some expatriate property, including homes, cars and places of business, 
were also damaged or destroyed by rioters and arsonists. Firm government 
security measures, combined with some steps to address the concerns of 
the Shia community, appeared to have succeeded in restoring order by 
June 1995.



IV.  MARKETING U.S. PRODUCTS AND SERVICES

INTRODUCTION
Bahrain's primary commercial importance is as a regional center, serving 
not only the Gulf countries but also the Middle East in general, as well 
as South Asia.  Because the country has limited oil and other natural 
resources, the government has long aimed at making Bahrain into the 
"Singapore" or "Hong Kong" of the region.  Laws, regulations, and 
infrastructure have been developed with that goal in mind, and an 
increasing number of U.S. companies have established regional 
headquarters in Bahrain. 

DISTRIBUTION AND SALES CHANNELS
Except for factories or regional offices established in Bahrain, which 
can sell products and services locally, commercial sales within Bahrain 
can only be made through a Bahraini agent or a joint company set up with 
at least 51 percent Bahraini ownership.

There are numerous food importers, many of whom are also wholesalers, 
distributors, and retailers.  Five to six companies dominate retail food 
sales. Major fruit and vegetable importers also import eggs. There is 
growing demand among processors/packers for bulk shipments of semi-
processed food products for final processing and packaging, especially 
corn oil, tree nuts, fruit juices, and snack foods.  Imported U.S. beef 
products are mostly purchased by hotels, restaurants, and catering 
companies.

USE OF AGENTS AND DISTRIBUTORS; FINDING A PARTNER
By law, foreign companies do not require a local agent of partner in 
order to set up or operate a regional office in Bahrain, although some 
U.S. companies setting up regional offices have found it useful to have 
some sort of facilitating relationship with a local company. Although 
this is a matter of individual company preference, the U.S. Embassy 
recommends such a practice. The 1992 Commercial Agencies Law, which 
governs relations with local agents, allows termination of an agency 
agreement without penalty to the foreign company in the case of a non-
performing agent; however, implementation of this provision tends to be 
weighted in favor of the original agent, and great care should be taken 
in drawing up agreements. Choice of agent is not always left to the 
foreign company's preference. In an ongoing case involving a major U.S. 
company, the transition from former agent to new agent remained 
incomplete three and a half years after the U.S. company terminated its 
agreement with the original agent, as the government refused to register 
the new agency agreement. The U.S. Embassy's Economic and Commercial 
Section will give individualized advice on potential agents, 
distributors, or partners for interested U.S. firms.

Local agency laws prohibit the importation and sale of brand name food 
products by other than the principal agent.

FRANCHISING
U.S. fast food franchises are highly sought after by local contacts.  
Many of the major U.S. food franchise companies are present in the 
market. There is increasing interest in non-food, service-sector 
franchises with proven international attractiveness. A local sponsor is 
required.

JOINT VENTURES/LICENSING
A maximum of 49% foreign ownership is allowed in joint venture companies 
in Bahrain. They may take several legal forms, partnership, simple 
commodity company, or company with limited liability (W.L.L.). 

STEPS TO ESTABLISHING AN OFFICE
For the last several years the Bahrain Marketing and Promotions Office 
has served to assist international and local businesses in achieving 
their objectives on the island. Recently reorganized and renamed the 
Bahrain Promotions and Marketing Board, it will continue to offer 
services to foreign companies wishing to establish businesses in 
Bahrain, including the "fast-track" company registration which has been 
of benefit in the past to U.S. companies seeking registration here 
(contact information in Appendix E -- U.S. and Country Contacts).

SELLING FACTORS/TECHNIQUES
In general, U.S. companies should select a local agent carefully and 
should pay attention to his advice on advertising, promotion and 
pricing. Due to local culture and conditions, techniques and phraseology 
which may work in the U.S. may not necessarily be effective here.

Face-to-face contact can significantly increase the chances of 
establishing successful business relations. Key points to stress when 
selling food products are competitive price, U.S. origin, high quality 
and new-to-market status, if applicable. Arabic labels are required. 
U.S. companies willing to print Arabic labels and provide promotional 
and marketing assistance will have a competitive edge. 

ADVERTISING AND TRADE PROMOTION (NEWSPAPERS, ETC.)
Bahrain is a small island, and word of mouth carries a great deal of 
weight. The best trade promotion is a reputation for reliability and 
fair prices.
 
Principal local newspapers are:

Arabic language:
  Akhbar Al Khaleej
  P.O. Box 5300
  Manama, Bahrain
  [Tel:  (973) 620111; Fax:  (973) 624312]

  Al-Ayam
  P.O. Box 3232
  Manama, Bahrain
  [Tel:  (973) 727111; Fax:  (973) 727552]

English language:

  Gulf Daily News
  P.O. Box 5300
  Manama, Bahrain
  (Tel:  (973) 620222; Fax:  (973) 622141)


PRICING PRODUCT
Generally it is recognized that shipping adds considerably to the cost 
of items manufactured in the U.S., which have had stiff competition from 
Far Eastern suppliers. However, at least in the short term, this 
disadvantage is counterbalanced by the favorable dollar-dinar exchange 
rate. American companies who are successful at establishing a market 
niche during this favorable climate will wish to plan ahead to enable 
them to retain market share. 

The average importer markup on food products is about 10-15 percent. 
Retail food prices are generally 20-30 percent above import/wholesale 
prices.

SALES SERVICE/CUSTOMER SUPPORT
A good agent/distributor relationship is crucial to success in this 
market, and the agent's provision of after-sales service directly 
affects product reputation. 

SELLING TO THE GOVERNMENT
For sales to government agencies, it is generally necessary to have a 
local agent, although in some cases (e.g., sales to the Bahrain Defense 
Force) an agent is not permitted.  Even where there is no formal agent, 
it is advisable to have a local company serving as a local point of 
contact, providing advice, and acting as "eyes and ears."  It is 
important to follow closely the local agent or contact's advice in 
preparing tenders, as seemingly innocuous changes in wording in the 
documents can sometimes spell the difference between success or failure.  
Tender documents should always be presented to the agent or contact for 
vetting before submission.  The local agent or contact's advice on 
pricing and timing can also be crucial and should be carefully listened 
to.

PROTECTING YOUR PRODUCT FROM IPR INFRINGEMENT
Although Bahrain has legislation protecting patents and trademarks, 
copyright protection is inadequate, despite issuance of a copyright law 
in 1993.  Best option for protecting specific works, aside from 
attempting to do so through patent and trademark protection, is the 
cumbersome and expensive process of registering each of them 
individually with the Ministry of Information.

NEED FOR A LOCAL ATTORNEY
Although it is not technically necessary to use a local attorney to draw 
up agency and sales agreements, it is generally advisable to do so.  



V.  LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT

Oil wealth fuelled Bahrain's rapid infrastructure development, the 
development of its manufacturing base, and the evolution of its 
international status as a financial and business center for the Gulf. 
With a reduction in Bahrain's oil revenues due to continuing low oil 
prices, the inevitable changeover from government-driven investment to 
privately-funded investment is underway. The Government of Bahrain is 
considering privatizing many future development projects, and the 
various manufacturers are expanding or diversifying as required to 
exploit an increasingly challenging marketplace. Against this 
background, this report attempts to designate those sectors in which 
growth is most likely to be fruitfully undertaken. 

Please note that the Government of Bahrain (GOB) uses the Standard 
International Trade Classification, Release 3, for its data 
classification. Where subsector figures for 1994/95 are given, they are 
in SITC, R3 categories. Earlier figures are in SITC, R1 categories.

1. ELECTRICAL POWER SYSTEMS  - ELP

Electricity consumption in Bahrain increased by seven per cent in 1994, 
rising to 4,500 million units from 4,200 MU the previous year. Peak 
demand remained steady at 900 megawatts throughout 1993 and 1994, but is 
expected to rise to 980 MW in 1995. Over 8,000 new consumers were 
connected in 1994, raising the total to 130,000. Consumption is expected 
to be in the range of 4,800 MU in 1995. Bahrain's government currently 
relies on a power link with Aluminium Bahrain (ALBA) to forestall any 
shortages in service by raising system capacity to 1100 MW; in the 
middle of 1995, the temporary shutdown of one ALBA generating unit, 
combined with inflexibly scheduled maintenance shutdowns on other units, 
resulted in several days of brief rolling blackouts. It is anticipated 
that 1996 and 1997 will be "critical" in terms of power supply. The 
government is still in negotiation for the construction of a private 
power plant, expected to go on line in 1998.

Two major government initiatives are being taken to increase  generating 
capacity:

- Sitra Power Station upgrade: the Works, Power and Water Ministry plans 
to upgrade the 20 year-old boilers and turbines to match the life of the 
associated 10 year-old desalination plant, which should be in operation 
until 2007. Total installed power generation capacity of the country is 
984 MW (not including the ALBA contribution), but demand came critically 
close to that when it peaked at 900 MW in the summer of 1994 and may 
come even closer in the summer of 1995. The Sitra Power Station's US$ 
18.6 million refurbishment program is vital if supply is to meet the 
estimated five per cent annual demand increase.

- Power plant, 350-400 MW (Build-Operate-Own or Build-Operate-Transfer): 
this project is expected to be run as Bahrain's first privately-owned 
power station, with various international companies negotiating 
provisions under which to develop the plant in a joint venture with the 
Bahrain private sector. The financial arrangements for the plant are 
scheduled to be completed in 1995 and the project would be completed 
three years later. 

Subsector Data Tables (Central Statistics Organization (CSO), GOB. 
Preliminary 1994 and 1995 figures are as yet unpublished.) 

Steam/Other Vapor-generating boilers and parts
(711110 - 712801) - in US$

                            1994   Jan-May 1995      
a. Total Market Size         n/a       n/a   
b. Total Local Production    n/a       n/a
c. Total Exports         265,685       
d. Total Imports       4,482,707    599,112
e. Imports from the U.S.    849,386    137,127

Electric Transformers (771190) - in US$

                          1994             Jan-May 1995
a. Total Market Size       n/a                n/a
b. Total Local Production   n/a               n/a
c. Total Exports            60,371          4,767
d. Total Imports            25,343,778  1,234,320
e. Imports from the U.S.   169,707         30,619

Electric Power Parts (771290) - in US$

                                 1994   Jan-May 1995
a. Total Market Size              n/a          n/a
b. Total Local Production         n/a          n/a
c. Total Exports                8,203          -0-
d. Total Imports           18,667,993    2,015,413
e. Imports from the U.S.      195,612      166,218


Apparatus for switching, protecting, making connections in electric 
circuits, over 1000 v. (722490) - in US$
                               1994          Jan-May 1995
a. Total Market Size             n/a           n/a
b. Total Local Production        n/a           n/a
c. Total Exports             142,181           -0-
d. Total Imports           8,843,412     1,674,732
e. Imports from the U.S.     585,537       423,467

Apparatus for switching, protecting, making connections in electric 
circuits, under 1000 v. (772501) - in US$
                             1994          Jan-May 1995
a. Total Market Size          n/a                n/a
b. Total Local Production     n/a                n/a
c. Total Exports        2,663,531            101,892
d. Total Imports       13,733,230          3,317,583
e. Imports from the U.S.  731,604            445,844


2. WATER RESOURCES EQUIPMENT/SERVICE - WRE

Bahrain is a desert island underlain by the Zone C aquifer which for 
centuries supplied artesian water to a head of 30 feet. Recent heavy 
demand has significantly depleted this aquifer, threatening its longterm 
viability and allowing seawater to infiltrate the reservoir. Thus the 
"sweet water" for which Bahrain was long famous is now brackish and 
requires treatment before use for drinking or as process water for 
industry. Between 1970 and 1993, the daily average water consumption 
rose from 12,000,000 gallons to 67,000,000 gallons; when released, the 
figures for 1994 and 1995 are expected to show a continuing upward 
trend. With a production ceiling of 70 million gallons per day, water 
rationing through flow restriction is commonly necessary in the summer 
months. Three reverse osmosis desalination plants currently serve the 
island, producing 35.5 million gallons per day on average. The balance 
is drawn from the underground reservoir. 

Industrial entities are building their own desalination plants to meet 
process water requirements; new industries anticipate shortages in 
municipal supply of "distillate" in the near future. Private water 
bottling plants, upon which much of the public depends for drinking 
water, also operate their own small desalination facilities, and further 
treat the water with filtration, chlorination and, in some cases, uv. 
Thermal desalination is being examined by some parties as an option. 

In late 1994 the new Kimberly-Clark Olayan paper mill went on line and 
other large, water-intensive industries, including factories producing 
steel and iron products, are being considered for the near future. 
Private water desalination facilities built to serve these industries 
will further draw down the Zone C aquifer, exacerbating the need for 
seawater desalination in the near future. The Bahrain economy is reliant 
upon this new industry, in addition to the burgeoning aluminum smelting 
and manufacturing sector, to replace shrinking oil revenues.

The GOB is under fiscal pressure after two decades of infrastructure 
spending, and is calling for private companies to provide the water 
treatment facilities needed for future demand. Currently a 30 million 
gpd reverse osmosis plant is being considered for tender under a build-
own-operate scheme; its product will be sold to the Bahrain Government 
for distribution.

American companies are already providing desalination facilities for 
private projects; Bahraini businesses have expressed interest in 
building new bottling plants and in exploring other options for 
increasing Bahrain's supply of potable and process water. The key 
elements will continue to be profitability and privatization.

The U.S. firm DuPont, one of the world's leading producers of reverse 
osmosis (RO) filters, is to open a technical center in Bahrain for its 
"Permasep" RO membrane products. The proposed  center will provide 
facilities for new and existing RO plants using its brackish and 
seawater desalination products, and will include training facilities, a 
laboratory, a wet testing facility and a pilot plant.

Water conservation measures -- including both flow-limiting equipment 
and a rationing system -- are currently being considered. Water 
reclamation from sewage provides a very small percentage of landscape 
irrigation.

Subsector Data Tables (From Central Statistics Organization (CSO), GOB. 
Preliminary 1994 and 1995 figures are unpublished as of June 1995.) 

Filtering and Purifying Machinery for water (743610) - in US$
                             1994       Jan-May 1995
a. Total Market               n/a              n/a
b. Total Local Production     n/a              n/a
c. Total Exports            1,003              -0-
d. Total Imports          652,848        2,055,883   
e. Imports from U.S.      362,417        1,614,307

Distilling or Rectifying Plant (741730) - in US$
                             1994        Jan-May 1995
a. Total Market                n/a            n/a
b. Total Local Production      n/a            n/a
c. Total Exports               -0-            -0-   
d. Total Imports        2,683,696         258,570
e. Imports from U.S.       26,306         218,634


Subsector Data Tables (From Central Statistics Organization (CSO), GOB, 
"Foreign Trade Statistics for 1993".) 

Water Distilling Plants and Parts (HS 719190) - 1993 - in US$

a. Total Market    n/a   
b. Total Local Production    n/a
c. Total Exports -    n/a
d. Total Imports   9,550,338
e. Total Imports from US  bd    2,918,159

Water Coolers - HS 719157 - 1993 - in US$
a. Total Market Size    n/a
b. Total Local Production   n/a
c. Total Exports    n/a
d. Total Imports    2,459,213
e. Total Imports from US  bd    204,064

Water Filters, Domestic, and Parts (HS 719231) - 1993 - in US$
a. Total Market Size    n/a
b. Total Local Production    n/a
c. Total Exports    n/a
d. Total Imports  bd    1,454,336
e. Total Imports from US  bd    559,637

Bottling Machines and Parts (HS 719620) - 1993 - in US$
a. Total Market Size -    n/a
b. Total Local Production -    n/a
c. Total Exports -    n/a
d. Total Imports - bd    1,369,715
e. Total Imports from U.S. - bd    614,620


3. PORT/SHIPBUILDING EQUIPMENT - PRT

Bahrain's current port of Mina Sulman handled a total tonnage throughput 
of 2,176,783 freight/tons in 1993, up from 1,455,995 freight/tons in 
1989. Private jetties handle an even greater throughput. Greater port 
capacity and improved facilities will be required to keep pace with 
increasing industrial growth in Bahrain, and across the King Fahed 
Causeway which links Bahrain to the Eastern Province of Saudi Arabia. 
Therefore the GOB is planning a US$ 200-340 million "superport" and 
industrial complex near Hidd, on Muharraq Island.

The new port will be able to accommodate much larger ships than the 
facilities at Bahrain's current main port at Mina Sulman, handling twice 
as many containers at 400,000 a year. Press reports state that a 
consultant for the first phase of the new port will be appointed in mid-
1995, while the necessary land for the project will be prepared by the 
first quarter of 1996.

It is anticipated that the new port will be built in three phases and 
will occupy an area of 640 hectares. However, it has not been decided as 
yet whether the new port will be run by the government or the private 
sector or jointly by both.

The first phase will include the building of port facilities, three 
piers, a water/sewerage plant and electricity/power plant facilities. 
Land has been set aside for industrial facilities to be built over the 
next 10 years. Sand dredged for the new port channel will be used to 
reclaim land for the industrial site.

In a related development, also near Hidd, there are also plans to expand 
the Arabian Ship Repair Yard (ASRY) floating dock and repair facility, 
already the Gulf's largest. The three-phase project will involve 
dredging a channel and building a new quay, with all associated 
equipment and services, at an estimated expenditure of US$ 87 million. 
Plans to build a second graving dock, at a cost of US$ 120 million, are 
under consideration for the future. The plans are linked to the 
development of the Hidd port and industrial area.

During the first quarter of 1995, 34 ships were repaired at ASRY, a 36 
percent increase over the same period in 1994. This produced a first-
quarter ship repair income of US$ 28 million, up from US$ 25 million for 
the same period last year. Ship repair revenue for 1994 rose to US$ 68.2 
million, an 18 percent increase over 1993 and the highest in the 
company's history. ASRY specializes in the internal coating of ballast 
and cargo tanks, and has increased its percentage of bulk carrier and 
cargo vessel customers. ASRY is currently working toward ISO 9002 
accreditation.

Over 1,600 bulk carriers and general cargo vessels trade to the Gulf 
every year. A further 1,000 product carriers, gas carriers,   livestock 
carriers and ro-ro vessels also trade to the area. 

Container Handling Figures in TEU's (Twenty Equivalent Units) 
1992 - 1993 
(from "Bahrain Ports Handbook 1995-1996", Land and Marine Publications 
Ltd.)

   1992   1993
Import   45,176   51,308
Export   44,553   50,735
Transshipment   238   53
Total   89,967   102,096



Subsector Data Tables (From "Foreign Trade Statistics for 1993", 
published December 1994 by the Central Statistics Organization (CSO), 
GOB.) 

Ships and Boats (HS 735301-08) - 1993 - in US$

a. Total Market Size -    n/a
b. Total Local Production -    n/a
c. Total Exports - bd    1,478
d. Total Imports - bd    5,375,830
e. Imports from the U.S. - bd    795,145

Parts of Ships as above (HS 735309) - 1993 - in US$
a. Total Market Size -    n/a
b. Total Local Production -    n/a
c. Total Exports -    n/a
d. Total Imports - bd    1,086,309
e. Total Imports from US - bd    719,679


4. AUTOMOTIVE PRODUCTS - AUT/TRK/APS

This sector provided the second-largest source of orders for U.S.-
manufactured goods in 1993.  While Japan has long dominated this sector, 
estimated to have exceeded US$ 200 million in 1994, the recent strength 
of the yen has given U.S. companies good prospects for increasing their 
share. This amounted to US$ 31.5 million (23.5 percent) in 1992, and, by 
U.S. figures, an additional US$ 26.8 million in 1993, not counting 
reexports to Bahrain from other countries. 

However, general economic downturn combined with recent political events 
had an impact on this market in early 1995, the long-term significance 
of which is yet to be measured. Sales in early 1995 were slow to flat, 
according to industry sources. This, predictably, has created increasing 
markets for spare parts and accessories, as consumers who once would 
have changed cars with each new model year now are maintaining their 
existing vehicles longer.

In addition to new vehicles, there is a growing market for used American 
vehicles in Bahrain. Mid-range to large luxury sedans seem to be 
preferred.

The U.S. faces stiff competition from Japan for sales of auto parts and 
supplies in Bahrain, but American products do hold a market share which 
can be strengthened under current exchange conditions. Japan 
overwhelmingly dominates the motor vehicle market, with 54.7 percent of 
the passenger car market in 1992, compared to 18.1 percent for the U.S.; 
Germany was in third place with 17.2 percent, followed by South Korea 
with 2.1 percent.   The picture was even worse in most other motor 
vehicle categories in 1992, with the Japanese selling the majority in 
nearly every category and the U.S. usually ranking between third and 
fifth, with South Korea and/or the U.K. ahead in trucks, pick-ups, 
buses, and all-terrain vehicles. During the first half of 1995, luxury 
European vehicles offered strong competition.

Subsector Data Tables (From the Central Statistics Organization (CSO), 
GOB. 1994 and 1995 figures are preliminary and as yet unpublished.) 

Passenger Cars (781211) - in US$

                                    1994           Jan-May 1995   
a. Total Market                      n/a                n/a
b. Total Local Production            n/a                n/a
c. Total Exports                  5,067,760           1,677,339
d. Total Imports                105,550,206          45,168,680
e. Imports from U.S.             16,893,137           5,489,508

Pick-up Trucks (781212) - in US$

                                    1994           Jan-May 1995
a. Total Market                      n/a                n/a
b. Total Local Production            n/a                n/a
c. Total Exports                  684,847             175,997
d. Total Imports               12,349,439           2,271,803
e. Imports from U.S.              525,608             255,450

Jeep-type Cars (781212) - in US$

                                   1994            Jan-May 1995
a. Total Market                     n/a                  n/a
b. Total Local Production           n/a                  n/a
c. Total Exports                 496,613               144,857
d. Total Imports               7,959,849             3,144,319
e. Imports from U.S.           1,946,547             1,068,142


Car Exhaust Parts for all vehicles (784310) - in US$

                                1994               Jan-May 1995
a. Total Market                  n/a                    n/a
b. Total Local Production        n/a                    n/a
c. Total Exports                 -0-                    -0-
d. Total Imports                281,825               78,071
e. Imports from U.S.             84,536               14,692


Other Parts/accessories for Motor Vehicles. Auto Parts (784320) - in US$

                                1994                   Jan-May 1995
a. Total Market                  n/a                       n/a
b. Total Local Production        n/a                       n/a
c. Total Exports              6,013,715                1,033,057
d. Total Imports             36,967,494                4,421,613
e. Imports from U.S.          7,756,164                1,846,510


Second Hand Passenger Cars - in US$

                                1994                   Jan-May 1995
a. Total Market                  n/a                       n/a
b. Total Local Production        n/a                       n/a
c. Total Exports              152,408                     353,084
d. Total Imports           18,635,769                   4,421,613
e. Imports from U.S.        7,756,164                   1,846,510


Subsector Data Tables (From "Foreign Trade Statistics for 1993", 
published December 1994 by the Central Statistics Organization (CSO), 
GOB.) 

Passenger Motor Cars not Jeep-type (732101)

                          1993 - in US$
a. Total Market Size          n/a
b. Total Local Production     n/a 
c. Total Exports              -0-
d. Total Imports           123,211,248
e. Imports from the U.S.    29,375,888

Jeep-type Cars (732102),
                          1993 - in US$
a. Total Market Size          n/a   
b. Total Local Production     n/a
c. Total Exports              n/a
d. Total Imports           7,639,883
e. Imports from the U.S.     802,725

Pickups (732302),
                          1993 - in US$
a. Total Market Size          n/a   
b. Total Local Production     n/a
c. Total Exports              n/a
d. Total Imports            8,485,640
e. Imports from the U.S.       70,505

Other Parts for Motor Vehicles other than for Motor Cycles (732890)

                           1993 - in US$
a. Total Market Size             n/a   
b. Total Local Production        n/a
c. Total Exports                 n/a
d. Total Imports               36,016,976
e. Imports from the U.S.        4,076,639

5. AIRPORT/GROUND SUPPORT EQUIPMENT - APG

International transportation capabilities are crucial to Bahrain's role 
as financial and business center of the Gulf. Therefore it has developed 
airport facilities widely recognized as of a very high standard ("best 
overall" out of 26 airports surveyed in 1995 by European Data Research).

Bahrain International Airport (BIA) handled more passenger and cargo 
traffic in 1994 than in any of its previous 62 years, according to 
Bahrain's Civil Aviation Affairs (CAA). The airport handled 3.3 million 
passengers in 1994, up 9.7 percent from 1993, and over 92,000 tons of 
cargo, a 19.3 percent increase. Expansions in the commercial, long-haul 
and charter activities of the airlines flying through Bahrain influenced 
the growth in passenger numbers. GCC-owned Gulf Air, based in Bahrain, 
introduced greater passenger and charter capabilities in 1994, adding 
B757, B767 and A340 aircraft to its fleet. The airport recently 
installed an Integrated Airport Pavement Management System to assist 
with airfield management.

The CAA now plans expansions to BIA which will allow it to keep up with 
its rate of growth. Three new aircraft stands are planned for the front 
of the passenger terminal building, increasing to 12 the number of 
stands available; two of the existing stands will be connected to the 
terminal building by airbridges. Travelators, cargo aprons and new 
aircraft parking bays are also planned. Anticipated expenditure on the 
project is US$ 18 million.

6. TELECOMMUNICATIONS EQUIPMENT AND SERVICES - TEL

Telecommunications are intrinsic to Bahrain's success as an 
international business and financial center. In order to preserve its 
position as the center of the Gulf's financial marketplace, Bahrain must 
continue to expand and improve its already-competitive 
telecommunications network. Industry sources observe that Bahrain's 
network is already better-realized than that of most of the Gulf, and 
that Bahrain recognizes the need for and supports further improvements 
in order to resist competition, notably from Dubai in the United Arab 
Emirates. One specific improvement on the telecommunications wish list 
is a switch from satellite to cable feed.

It is felt that the Government of Bahrain could better encourage 
international participation in this sector by liberalizing the 
opportunities to offer services. However, prospects are good, according 
to American businesses already established here.

At the consumer level, the Bahrain market for telecommunications 
equipment is seemingly insatiable; Bahrain reportedly has the highest 
percentage of telephone users in the Arab world. One in four people in 
Bahrain has a telephone, one in ten a pager and three in every 100 a 
mobile phone, according to the Bahrain Telephone Company (Batelco), 
which announced a 15 percent increase in net profits for 1994. Batelco's 
mobile, paging, Voicemail and Stardial services are credited with 
boosting local call volumes, but international direct dial calls are the 
highest producers, comprising 98 percent of outgoing traffic, which in 
turn supplied 58 percent of the company's gross turnover. Consumers are 
well-educated and enthusiastic about new products in the field. Batelco 
continues to expand services which require higher-tech equipment. Sprint 
International, AT&T, MCI and Executive Telecard offer international call 
services to Bahraini customers.

Given the GOB's commitment to Bahrainization and to technology transfer, 
and the generally fine technical skills offered by many Bahrainis, 
joint-venture assembly plants of a high-employment, low-tech profile are 
worth considering. Some industry observers feel that a well-designed 
facility could provide stiff competition to Far Eastern assemblers.

Subsector Data Tables (From "Foreign Trade Statistics for 1993", 
published December 1994 by the Central Statistics Organization, GOB.)

Electrical Line Telephone and Telegraph Equipment (724910),

                              1993 - in US$
a. Total Market Size            n/a
b. Total Local Production       n/a
c. Total Exports                n/a
d. Total Imports             383,910
e. Imports from the U.S.      67,107

Other Telecommunications Equipment n.e.s. (724998)

                              1993 - in US$
a. Total Market Size           n/a   
b. Total Local Production      n/a
c. Total Exports               n/a
d. Total Imports             41,868,473
e. Imports from the U.S.      3,204,396

7. COMPUTER PRODUCTS - CPT/CSF

A large percentage of Bahrain's consumers are computer-aware and 
receptive to change in this rapidly-changing arena. The Government of 
Bahrain is in the process of moving all ministries and departments out 
of ledger books and into an integrated Financial Management Information 
System; most of the data for the Subsector Data Tables in this report 
came from the networked stations of the Central Statistics Organization. 
The Financial Sector relies on leading-edge information management to 
retain its competitiveness and profitability; at the top end, the retail 
sector is as current in its stock-control and management procedures as 
any in the West. The personal computer market is well-supported and 
hotly competitive; new shops regularly open to supply consumers with 
hardware, software and peripherals in impressive array. Computer-related 
businesses fill more than five percent of the Bahrain Yellow Pages. 

The government-established National Information Technology Unit (NITU) 
was formed in 1993 with the multiple role of promoting technology 
transfer into Bahrain, with concomitant training and education for 
Bahrainis, and to encourage international IT companies to establish 
operation bases in Bahrain. The NITU identifies a number of activities 
it is particularly seeking from these international companies, most of 
them service-based: consultancy, research, software development, 
Arabisation of applications, specialized training, database publishing, 
networking and systems design. U.S. companies already established here 
include IBM, U.S. Software Inc., Cray Research, Oracle, Compaq, 

Regionally, the IT market is valued at US$ 3 billion, and Bahrain is 
attentive to retaining its position as the center of business services 
for the Gulf. At an IT trade show, Infotech 95, held in Bahrain in mid-
1995, 200 international companies displayed high-performance 
supercomputers, multimedia, banking software and peripherals to 6,600 
business professionals. By late 1995 it is anticipated that a number of 
Gulf countries, Bahrain first among them, will be able to offer Internet 
connections at local rates, an indication of the telecommunications boom 
that is helping to propel the IT market into prominence. Bahrain enjoys 
a particularly beneficial interaction with the oil-rich Eastern Province 
of Saudi Arabia, to which it is linked by a causeway; one businessman in 
high-end IT sales described this as a "winning combination for IT in 
Bahrain."

It must be noted, however, that Bahrain does not yet offer complete IPR 
protection, and pirated software is another thriving business here. 
Additionally, local advice is that the consumer PC market is competitive 
and narrow-margined.

Subsector Data Tables (Preliminary 1994 and 1995 figures have been 
provided by the Central Statistics Organization of the State of Bahrain, 
and are unpublished at time of writing.) 
   
Automatic Data Processing Machines (752011) - in US$

                              1994            Jan-May 1995   
a. Total Market Size           n/a                n/a
b. Total Local Production      n/a                n/a
c. Total Exports              1,162               -0-
d. Total Imports            371,686              1,526   
e. Imports from the U.S.     68,903               -0-

Host Computers (Main Frame) (752401) - in US$

                              1994            Jan-May 1995   
a. Total Market Size           n/a               n/a
b. Total Local Production      n/a               n/a
c. Total Exports              3,221            775,742
d. Total Imports          2,332,909            899,769
e. Imports from the U.S.  1,250,471            740,878

Personal Computers (752510) - in US$

                              1994            Jan-May 1995   
a. Total Market Size           n/a                n/a
b. Total Local Production      n/a                n/a
c. Total Exports                48,229            47,996
d. Total Imports             3,521,024        822,547
e. Imports from the U.S.     1,381,618        203,268

Storage Units whether or not presented with rest of equipment (752710) - 
in US$

                              1994            Jan-May 1995   
a. Total Market Size           n/a                n/a
b. Total Local Production      n/a                n/a
c. Total Exports              37,538           11,994
d. Total Imports             160,011          159,785
e. Imports from the U.S.      66,441           35,373

Data Processing Equipment (e.g. mouse, keyboards, etc.) 752910 - 
in US$

                              1994            Jan-May 1995   
a. Total Market Size           n/a               n/a
b. Total Local Production      n/a               n/a
c. Total Exports              37,016            99,732
d. Total Imports           2,265,149         1,471,827
e. Imports from the U.S.     444,749           613,018

Parts and Accessories (759901) - in US$

                              1994            Jan-May 1995   
a. Total Market Size           n/a                   n/a
b. Total Local Production      n/a                   n/a
c. Total Exports             315,031              563,451
d. Total Imports          30,196,511           15,266,961
e. Imports from the U.S.  12,427,532            4,388,473



8. OIL SUPPORT AND EXPLORATION EQUIPMENT - OGM/OGS/PVC

Although Bahrain was the first Gulf state to discover oil, production 
within the country's boundaries was only 76,000 barrels per day at its 
peak, and as of 1995 had been fairly steady in the 40,000 bpd range for 
several years. Exports of petroleum products (including products refined 
from Saudi crude) were 240,000 barrels per day in 1994.  British firms 
lead American firms in gas and oilfield equipment and refinery parts, 
with the Japanese lagging but still significant.

Bahrain is strategically located as a site for regional representation 
and sales offices serving the Gulf for oil industry products and 
services. And despite the low level of domestic oil production, Bahrain 
will continue to refine the products of Saudi Arabian oilfields. The 
following further potential opportunities exist for U.S. enterprises:

- The modernization of the Sitra refinery, operated by Bahrain Petroleum 
Company (BAPCO) on behalf of its shareholders, the government-owned 
Bahrain National Oil Company (BANOCO 60%) and the US company Caltex 
(40%). The original plan to modernize the refinery would have cost an 
estimated US$ 800 million, and revised plans called for the 
modernization program to be divided into two or three phases due to the 
lack of readily available state funding. The first phase of the 
modernization program is estimated to cost US$ 200-300 million and would 
require at least two years to be completed. It would involve building a 
new single crude unit to replace the four original crude units which 
date back to the 1930's. By having one unit, BAPCO would increase 
efficiency and reduce maintenance costs. Gasoline production would also 
be upgraded. The entire project is on hold, and a next-step decision is 
unlikely in 1995.

- Additionally, storage tanks in Bahrain are uninsulated and wastage 
through evaporation in the local high temperatures is estimated at 10 
percent; waste oil has hitherto been dumped in the desert. Cost 
effective insulation in the former case, and removal and recycling in 
the latter case, represent other project opportunities.

- BAPCO has been asked by joint owners the Bahrain Government and U.S. 
company Caltex to study the possibilities of producing lead-free gas. 
Reportedly, some refinery equipment will have to be replaced in order to 
produce unleaded gas. The government plans to introduce the use of 
unleaded gas before the end of the 1990's.


Subsector Data Tables (From the Central Statistics Organization (CSO), 
GOB. 1994 and 1995 figures are preliminary, and unpublished at time of 
writing.)

Gas and Oil Field Equipment (723370, 723380) - in US$

                             1993               1994        Jan-May 1995      
a. Total Market Size          n/a                n/a            n/a
b. Total Local Production     n/a                n/a            n/a
c. Total Exports               0              2,621,021     339,618
d. Total Imports            3,708,826         3,000,435     435,304
e. Imports from the U.S.    2,134,909           493,397     435,304


9. AIR CONDITIONING/REFRIGERATION EQUIPMENT - ACR

Bahrain's hot and humid summer climate makes air-conditioning equipment 
essential for every home and business on the island.  U.S. producers of 
such equipment enjoy a reputation for quality and service unmatched by 
other suppliers.  The island has a large inventory of installed U.S.-
origin equipment, generating continuing demand for parts.  However, this 
sector has been affected by the slowdown in construction which has 
followed the reduction in oil revenues, and by political events which 
reduced consumer confidence in early 1995. 

Industry observers indicate that the market should begin a slow 
improvement in early 1996, but draw different curves for different 
market sectors. Sales of window units, used in less affluent homes due 
to their low cost, but with a high replacement rate, are expected to 
maintain a three to four percent growth rate over the next few years. 
Split unit sales to the more affluent consumer are anticipated to grow 
at a rate of 10 to 20 percent; the U.S. has keen competition from 
Malaysia and Japan in this market. Sales of package and DX systems sold 
to upper-price homes and villas began to slump in early 1995, and are 
anticipated to stay down by 15 to 20 percent until late 1996. 
Commercial-level chiller sales, the bulk of which market the U.S. shares 
with France, are anticipated to remain steady for 1995 while ongoing 
projects are completed. As few new projects are underway for 1996, sales 
are expected to drop by as much as 30 percent, recovering as new 
projects are developed with 1997 delivery dates for equipment. There is, 
however, a steady demand for replacement of chiller units in buildings 
constructed during the earlier boom years of 1980-85.

Over the next few years, most GCC countries intend to phase out the use 
of freon in car AC, refrigerating and freezing devices. Bahrain has an 
extension until the turn of the century, but new commercial units 
currently being installed either meet the new code, or can be converted 
to do so when supplies of 134A gas become less expensively available.  
Also, pressure on electricity supplies may focus consumers' minds on 
conservation measures. Although Bahrain's consumers in general have not 
proven themselves to be either environmentally-aware nor conservation-
conscious, it would appear that freon-free, low-consumption devices 
could become attractive in the near future.

In the field of air conditioning and cooling equipment, the U.S.'s 
closest competitors are, in order, Japan, the U.K., and Germany. Saudi 
Arabia, Malaysia and Japan all led the U.S. in sales of split unit air 
conditioning in the first five months of 1995.    


Subsector Data Tables (From the Central Statistics Organization (CSO), 
GOB. Preliminary 1994 and 1995 figures have been provided by the CSO, 
and are as yet unpublished.) 

Air Conditioning Machines, window or wall (741510) - in US$

                              1994            Jan-May 1995
a. Total Market Size           n/a                 n/a
b. Total Local Production      n/a                 n/a
c. Total Exports              127,234           264,674
d. Total Imports            9,321,234         5,311,179
e. Imports from the U.S.      742,443           547,693


Air Conditioning Split Unit (741530) - in US$

                              1994            Jan-May 1995   
a. Total Market Size           n/a                n/a   
b. Total Local Production      n/a                n/a
c. Total Exports            2,584,001           1,499,806
d. Total Imports            9,920,430           3,395,838
e. Imports from the U.S.    2,984,767             178,201

Air Conditioning Central (741540) - in US$

                              1994             Jan-May 1995
a. Total Market Size           n/a                 n/a
b. Total Local Production      n/a                 n/a
c. Total Exports              23,772               -0-
d. Total Imports           6,150,545            1,227,860
e. Imports from U.S.       2,984,767              547,693

Air Conditioning Machines Other (741550) - in US$

                              1994            1995
a. Total Market Size           n/a              n/a
b. Total Local Production      n/a              n/a
c. Total Exports              5,672             -0-
d. Total Imports          2,582,051         311,662
e. Imports from U.S.        877,395         121,074

Parts for Air Conditioning Machines (741590) - in US$

                              1994           Jan-May 1995
a. Total Market Size            n/a             n/a
b. Total Local Production       n/a             n/a
c. Total Exports              36,583           41,846
d. Total Imports           8,788,089        4,461,467
e. Imports from U.S.       3,218,950        1,847,967

10. FURNITURE - FUR

U.S.-made furniture and carpets have an excellent reputation for design 
and quality in the Bahrain market, especially among the Western-educated 
middle and upper income groups. Numerous large showrooms feature U.S. 
furniture and carpets. Current exchange rate conditions favor U.S. 
market share in this sector; however, short-term political events caused 
a downturn in the early part of 1995, as consumer confidence was eroded. 
The long-term significance of this is as yet unmeasured, but as of mid-
1995, retail traffic seems to be increasing, and some store owners 
appear to be making significant efforts toward reviving traditional 
Bahraini enthusiasm for consumer goods. The larger Bahraini furniture 
stores are fully-equipped for deluxing and retouching; most offer design 
services and other added-value facilities.

In mid-1995, a large furniture retailer held a consumer show called 
"American Furniture Week" in the Bahrain International Exhibition 
Center. More than 15,000 visitors from throughout the Gulf attended the 
show, and a high percentage of them made significant purchases. One 
other retailer whose large showroom specializes in American furniture 
announced a similarly-themed "sale" in the same week, with good results. 
Market sources agree that U.S.-made furniture enjoys an increasing 
consumer base in Bahrain, and in the Gulf generally.   

Total Bahrain imports of furniture and furniture parts (excluding 
electrical and plumbing fixtures and parts) exceeded US$ 42 million in 
1993, according to Bahraini import statistics.

In the general furniture category (SITC, R1 code: 821011), the U.S. held 
a close second place in 1993, with a 23 percent share of the market to 
Italy's 26 percent. The U.K. ran a distant third with 6.5 percent of the 
market.

Currently there are 458 furniture makers in Bahrain employing 3297 
skilled workers - a substantial pool of skilled craftsmen and carpenters 
able, with supervision, to produce high quality furniture to world 
standards.

Wage rates are low (a skilled man may cost as little as US$ 330 per 
month) so an opportunity exists for US furniture manufacturers to 
consider manufacturing their products in Bahrain.

There are two potential benefits. Firstly manufacturing from a low cost 
base will enhance the competitive advantage of US manufacturers in world 
markets. Secondly US made furniture has an excellent reputation for 
design and quality in the Gulf region markets and a local presence in 
Bahrain would strengthen their foothold locally.

Subsector Data Tables (From the Central Statistics Organization (CSO), 
GOB. Preliminary 1994 and 1995 figures have been provided by the CSO, 
and are as yet unpublished.) 
   
Office Chair (821140) - in US$

                              1994            Jan-May 1995
a. Total Market Size           n/a                n/a
b. Total Local Production      n/a                n/a
c. Total Exports               987                -0-
d. Total Imports           522,051             285,017
e. Imports from the U.S.    59,406              35,095


Wooden Frame Seats (821160) - in US$
                                       
                              1994            Jan-May 1995
a. Total Market Size           n/a              n/a
b. Total Local Production      n/a              n/a
c. Total Exports              24,348           8,441
d. Total Imports             412,816         308,773
e. Imports from the U.S.     103,382         161,446


Office Furniture, Metal (821310) - in US$
                                    
                              1994            Jan-May 1995
a. Total Market Size           n/a               n/a
b. Total Local Production      n/a               n/a
c. Total Exports             48,455              -0-
d. Total Imports           3,045,709        1,076,687
e. Imports from the U.S.     841,494          214,164

Office Furniture, Wood (821510) - in US$
                        
                              1994            Jan-May 1995
a. Total Market Size           n/a              n/a
b. Total Local Production      n/a              n/a
c. Total Exports             708,144          211,283
d. Total Imports           3,045,709        1,076,687
e. Imports from the U.S.     841,494          214,164

Wood Dining Room Furniture (821520) - in US$

                              1994            Jan-May 1995
a. Total Market Size           n/a               n/a
b. Total Local Production      n/a               n/a
c. Total Exports             110,696           39,390
d. Total Imports           2,941,653        1,389,052
e. Imports from the U.S.     590,333          145,789


Wood Kitchen Furniture (821530) - in US$
                                       
                              1994            Jan-May 1995
a. Total Market Size            n/a               n/a
b. Total Local Production       n/a               n/a
c. Total Exports              500,260           338,769
d. Total Imports            8,118,589         1,179,143
e. Imports from the U.S.      298,135            34,058


Wood Sitting Room Furniture (821570) - in US$
                  
                               1994            Jan-May 1995
a. Total Market Size            n/a               n/a
b. Total Local Production       n/a               n/a
c. Total Exports              244,746            93,859
d. Total Imports            7,373,901         1,855,095
3. Imports from the U.S.    2,953,596         1,122,175

Bedroom Furniture, wood (821550) - in US$
                                 
                              1994            Jan-May 1995
a. Total Market Size           n/a               n/a
b. Total Local Production      n/a               n/a
c. Total Exports          1,191,694           214,198
d. Total Imports          8,118,589         2,679,647
e. Imports from the U.S.  2,270,646           839,621

Other Wooden Furniture (821590) - in US$
                                       
                              1994            Jan-May 1995
a. Total Market Size           n/a               n/a
b. Total Local Production      n/a               n/a
c. Total Exports            242,292              -0-
d. Total Imports          5,026,736          1,215,435
e. Imports from the U.S.    960,186            520,464

AGRICULTURAL PRODUCT SECTORS

High value U.S. food products with strong market potential in Bahrain 
include frozen poultry (parts and whole birds), beer, eggs, fresh apples 
and pears, hot sauces, salad dressings and dips, snack foods, fruit 
juices, canned fruits and vegetables, frozen beef, almonds and coffee 
whiteners. In addition, growth in the local food processing industry is 
driving demand for semi-processed products such as beverage bases, 
vegetable oils, raw peanuts, specialty flours and a variety of food 
ingredients.

Subsector Data Tables (From the Central Statistics Organization (CSO), 
GOB. Preliminary 1994 and 1995 figures have been provided by the CSO, 
and are as yet unpublished.) 

Corn Oil:  The largest-selling U.S. export to Bahrain in 1993, corn oil 
sales amounted to US$ 11,833,000, roughly ten times actual Bahraini 
consumption.  Most U.S. corn oil exported to Bahrain is reexported to 
other countries in the region.

Crude Corn Oil (421610) - in US$
                           
                              1994            Jan-May 1995
a. Total Market Size           n/a               n/a
b. Total Local Production      n/a               n/a
c. Total Exports               -0-               -0-
d. Total Imports             10,007,546     6,110,281
e. Imports from the U.S.      9,805,310     6,097,294

Refined Corn Oil and its fractions (421690) - in US$
                                       
                              1994            Jan-May 1995
a. Total Market Size           n/a              n/a
b. Total Local Production      n/a              n/a
c. Total Exports            23,074,754      9,879,432
d. Total Imports             3,434,668      1,035,268
e. Imports from the U.S.       594,555        --3,166


SIGNIFICANT INVESTMENT OPPORTUNITIES/MAJOR PROJECTS PLANNED

Coke Calcining Plant/New Reduction Line: Aluminium Bahrain (ALBA), the 
biggest aluminum producer in the Middle East, plans a US$ 250 million 
project to build a coke calcining plant at its marine terminal. ALBA 
currently relies on imported coke, used as a feedstock in the smelting 
process, but would prefer to have greater control over the quality of 
the coke it uses. Full approval for the project has yet to be given by 
ALBA's shareholders.

ALBA also plans to expand its production capacity by 36,500 metric tons 
a year. According to industry sources, ALBA is currently oversubscribed 
for its 460,000 metric ton capacity. The expansion proposal will require 
US$ 130 million in loans from local, regional and international banks; 
the new reduction line is anticipated to be operation in 1997. ALBA has 
spent around US$ 1.45 billion to double its capacity to 460,000 tonnes 
annually since the end of 1993, from around 225,000 tonnes previously.


Urea Plant: Gulf Petrochemical Industries Company (GPIC), jointly owned 
by the GOB, Saudi Basic Industries Corporation and Kuwait's 
Petrochemical Industries Company, has approved the construction of a 
10,700 tonnes-a-day urea plant at an estimated cost of US$ 140 million. 
Source of financing has been determined but not revealed. Five 
prequalified international contractors have been shortlisted (none of 
them American) but the result is still confidential. By using as feed 
stock ammonia already produced at its plant in the Sitra Industrial 
Area, GPIC hopes to take advantage of the current high demand for urea, 
both in the domestic and export market. The production process has yet 
to be selected.

Steel Plants: Saudi-based United Industrial Investment Company (UIIC) 
and other international investors are considering various industrial 
projects in Bahrain, including:
 
(a) US$ 220 million direct reduction steel plant with a planned 
production capacity of one million tonnes of HBI (hot briquetted iron). 

(B) US$ 420 million seamless steel plant with a planned production 
capacity of a 20,000 tonnes of seamless pipes annually. 

Raw materials for the plants would be provided by Gulf Industrial 
Investment Company (GIIC), which has an iron pellets plant in Bahrain. 
The pellets will be turned into steel pipe much in demand for the Gulf 
energy industry.  GIIC currently produces three million tonnes a year 
and plans to raise its production capacity to four million tonnes 
annually at a cost of up to US$ 20 million.

Hospital Construction:  The Ministry of Health is planning a 500-bed 
hospital to be built on Muharraq, the second-largest island in the 
Bahrain archipelago, and linked to the main island by two causeways. The 
hospital project is budgeted at an approximate $30 million.  The main 
consultant for the project is Ace Consultant Engineering, a Lebanese 
firm.  U.S. nonprofit agency ECRI, medical equipment consultants, have 
been named to the planning board. The project is expected to proceed in 
two phases, each consisting of 250 beds.  The first phase will be an 
obstetrics unit, and the second, a general care unit.  The land for the 
Muharraq project has been acquired, and the feasibility study is 
complete; the project is currently on hold while financing is arranged.

A major expansion of Manama's Salmaniya Hospital is in progress, again 
with Ace Consultant Engineering as the consultant.  U.S. nonprofit 
agency ECRI is involved in design and equipment sourcing for the 
associated Cancer Treatment Center and related elements. Expected 
completion date for the $31 million project is mid-1996. Until that 
date, the project team will be sourcing a range of material, including 
monitoring, laboratory and X-ray equipment. 

A group of Bahraini and Saudi businessmen have formed a company 
capitalized at $6.6 million to build the Bahrain Specialist Hospital 
(BSH), intended to provide services for people who currently seek 
treatment outside the country, and to promote "medical tourism", 
encouraging clients from other Gulf countries to seek specialist medical 
care in Bahrain.  American architect-consultancy firms are well-
positioned to be awarded the contract to design and build the hospital, 
and a major American university will provide technical direction during 
the project development, as well as a permanent advisor to the BSH. 

The BSH has raised from shareholders as paid-up capital an equity of US$ 
6.6 million; a further two-thirds of the required initial funding will 
be secured through loans. This makes attractive those equipment 
suppliers who can also offer financing.

Current plans call for the hospital to be built in two phases, the first 
to comprise 60 beds, operating theaters, an ICU, and facilities for 
ob/gyn, pediatrics, physical therapy and outpatient care. The second 
phase will provide an additional 60 beds and supporting facilities. 

Khalifa Town Project:  The Ministry of Housing has long planned to build 
a new town in the Askar area, south of the ALBA aluminum smelter, with 
8,000 housing units, five schools, and two clinics.  An American firm 
has been appointed as consultant in the project.  Aside from financial 
considerations, timing of the project was dependent on the completion of 
$250 million in pollution-abatement  projects at the smelter.  As of 
1993, ALBA had already reduced emissions of gas and dust from the plant 
by 99 percent.  In principle, the town project is to be completed within 
the next four to five years.

Since the land set aside for this town is widely acknowledged to have 
been affected by nearby industrial development, an opportunity may exist 
for an American company experienced in site detoxification.

U.S. INVESTMENT POLICY
The Government of the United States acknowledges the contribution that 
outward foreign direct investment makes to the U.S. economy. U.S. 
foreign direct investment is increasingly viewed as a complement or even 
a necessary component of trade. For example, roughly 60 percent of U.S. 
exports are sold by American firms that have operations abroad. 
Recognizing the benefits that U.S. outward investment brings to the U.S. 
economy, the Government of the United States undertakes initiatives, 
such as Overseas Private Investment Corporation (OPIC) programs, 
investment treaty negotiations and business facilitation programs, that 
support U.S. investors.



VI.  TRADE REGULATIONS AND STANDARDS

TRADE BARRIERS (INCL.TARIFFS, NON-TARIFF BARRIERS & IMPORT TAXES)
a. Standards Processed food items imported into Bahrain are subject to 
strict shelf-life and labeling requirements. Pharmaceutical products 
must be imported directly from a manufacturer which has a research 
department and must be licensed in a least two other GCC countries, one 
of which must be Saudi Arabia.
 
b. Investment  The government actively promotes foreign investment and 
has in recent years promulgated regulations permitting 100 percent 
foreign ownership of new industrial establishments and the establishment 
of representative offices or branches of foreign companies without local 
sponsors.  However, most other commercial investments are subject to 
government approval and generally must be made in partnership, with a 
Bahraini national controlling 51 percent of the equity.  Except for 
citizens of Kuwait, Saudi Arabia and the U.A.E., foreign nationals are 
not permitted to purchase land in Bahrain.  The government encourages 
the employment of local nationals by setting local-national employment 
targets in each sector and by restricting the issuance of expatriate 
labor permits.
 
c. Government procurement practices  The government makes major 
purchasing decisions through the tendering process. For major projects, 
the Ministry of Works, Power and Water extends invitations to selected, 
prequalified firms.  Likewise, construction companies bidding on 
government construction projects must be registered with the Ministry of 
Works, Power and Water.  Smaller contracts are handled by individual 
ministries and departments, and are not subject to prequalification.
 
d. Customs procedures  As a member of the Arab League, Bahrain is 
committed to enforcement, through its Customs Clearance procedures, of 
the primary aspect of the League's boycott of Israel; however, in 
recognition of the greatly-changed situation between Israel and the 
Palestinians, Bahrain has ended enforcement of the secondary and 
tertiary aspects of the boycott.

Customs also enforces Bahrain's Foreign Agency Law.  Goods manufactured 
by a firm with a registered agent in Bahrain may only be imported by 
that agent, or if by a third party, upon payment of a five percent 
commission to the registered agent.

CUSTOMS VALUATION
Customs duties are 5 percent of foodstuffs and non-luxuries, 10 percent 
on general luxuries, 20 percent on cars, 50 percent on cigarettes and 
tobacco, and 125 percent on alcoholic drinks.  No tax or duty is payable 
on imports of raw materials or semi-manufactured goods for manufacture, 
on imports required for development projects, on trans-shipment, or on 
re-exports. 

Bahrain levies a five percent ad valorem import duty on all food 
products from non-GCC countries. There is a protective duty of 25 
percent on corn and palm oil imports. 

Unification of customs tariffs in the GCC has been under discussion for 
some time.

IMPORT LICENSES
Import licenses are issued only to locally-established companies 
(including foreign-owned companies.)  

All imported beef and poultry products require a health certificate from 
the country of origin and a halal slaughter certificate issued by an 
approved Islamic center in the country of origin.

EXPORT CONTROLS
Bahrain imposes standard international export controls.

IMPORT/EXPORT DOCUMENTATION
For imports, Bahraini Customs requires commercial invoices in duplicate 
in Arabic or English; a certificate of origin in Arabic or English 
(produced by a Chamber of Commerce and endorsed by an Arab Embassy); a 
copy of insurance policy, if applicable; and bills of lading (four 
copies), including gross weight and dimensions.

Imported and exported goods are classified according to the Standard 
International Trade Classification (SITC), Revision 1.

TEMPORARY ENTRY
Facilities in the two free zones (see below) may be used for the 
temporary import of goods for reexport.

LABELING, MARKING REQUIREMENTS
All imported beef and poultry products require a health certificate from 
the country of origin and a halal slaughter certificate issued by an 
approved Islamic center in the country of origin.

Food labels must include product and brand names, production and expiry 
dates, country of origin, name of manufacturer, net weight in metric 
units, and a list of ingredients and additives in descending order of 
importance. All fats and oils used as ingredients must be specifically 
identified on the label.  Labels must be in Arabic or Arabic/English. 
Stickers are not accepted. Bahrain strictly enforces labeling 
requirements.  Small quantities of products with English-only labels may 
be approved for import on a case-by-case basis, for test marketing 
purposes.

PROHIBITED IMPORTS
Import of irradiated food products is prohibited. Private import of 
weapons is generally prohibited, except under special license, and only 
one private company is authorized to import explosives. Pornography and 
materials considered salacious are prohibited. 

STANDARDS (E.G. ISO 9000 USAGE)
A number of Bahraini manufacturing facilities are undergoing ISO 9002 
audits and procedures in order to obtain ISO certification. Bahrain has 
an ongoing process of examining and adopting international standards for 
manufactured and imported products. 

FREE TRADE ZONES/WAREHOUSES
Mina Sulman, Bahrain's major port, provides a free transit zone to 
facilitate the duty-free import of equipment and machinery.  Another 
free zone is located in the North Sitra Industrial Estate. Raw materials 
intended for processing in Bahrain and machinery imported by Bahraini-
owned firms are also exempt from duty.  Such imported goods may be 
stored duty-free.  These same facilities in the two free zones may be 
used for the temporary import of goods for reexport.

SPECIAL IMPORT PROVISIONS
None, other than provisions covered above.

MEMBERSHIP IN FREE TRADE AGREEMENTS
Duty-free access to neighboring GCC countries is possible from Bahrain.  
Exported local products should have a minimum of 40 percent of content 
added locally to qualify for duty-free status.



VII.  INVESTMENT CLIMATE

OPENNESS TO FOREIGN INVESTMENT
As part of its program to diversify the economy, the Government of 
Bahrain actively encourages foreign private investment, especially in 
sectors which are export-oriented and do not compete directly with 
established local enterprises.  Firms making industrial investments in 
Bahrain may be 100 percent foreign-owned.  In addition, 100 percent 
foreign-owned companies may be set up for regional distribution 
services, or representation, and such companies may operate within the 
domestic market and offshore.  Procedures for obtaining licenses have 
been streamlined, and all the necessary formalities can usually be 
accomplished within one week.  Bahrain offers several advantages to 
foreign investors, including: no personal or corporate taxation, no 
restriction on capital and profit repatriation, a developed 
infrastructure with excellent transportation and communication 
facilities, duty-free access to GCC member states for products 
manufactured in Bahrain, and a history of political stability.

Joint ventures - up to 49 percent foreign ownership - are permitted with 
Bahraini companies, but a 100 percent purchase of an existing Bahraini 
company would probably not be permitted, as the new incentive 
arrangements are aimed at attracting additional companies, rather than 
at reducing the number of Bahraini-held companies.  Under a law adopted 
in 1994, individual expatriates who have been living in Bahrain for at 
least three years may buy up to one percent of the shares in any 
publicly listed Bahraini corporation.

Bahrain's liberal taxation and import laws apply equally to Bahraini and 
foreign-owned companies.  Foreign-owned companies are eligible for 
partial financing from the state-owned Bahrain Development Bank, if they 
meet certain criteria such as providing employment to a significant 
number of Bahrainis.  Private investment (foreign or Bahraini) in 
petroleum extraction is permitted only under a production-sharing 
agreement with the state-owned petroleum company; as of 1994, only one 
company - U.S.-owned Harken Oil - had such an agreement.  In general, 
industrial enterprises which would compete with government-owned or 
parastatal firms are not permitted; this rule applies equally to 
Bahraini and foreign-owned companies.

Investment incentives offered to foreign firms are equal to those 
available to Bahraini companies.  For manufacturing investments, these 
incentives include:

--Labor:  A subsidy of US$11,925 per year for the first three years for 
each Bahraini employee employed by companies setting up factories in 
pioneering industries, US$7,950 per year for downstream industries, and 
US$2,650 per year for companies setting up factories in existing 
industries.

--Electricity charges:  A 50 percent rebate for the first five years, in 
all industries

--Land rental:  A 100 percent rebate of rental in government industrial 
areas for the first five years, for all industries.

--Customs duties:  A 100 percent rebate of customs duties for the first 
five years, for all industries.

--Export Credit Facility:  Available for all industries.

--Tariff Protection:  Subject to the approval of the National Committee 
on Tariff Protection, 10-20 percent protection may be given to 
pioneering or downstream industries.

CONVERSION AND TRANSFER POLICIES
Bahrain's currency, the Bahraini Dinar (BD), is fully and freely 
convertible at the fixed rate of $1.00 = BD 0.377.  There are no 
restrictions on converting or transferring funds, whether or not 
associated with an investment.  As the financial and banking center of 
the Middle East, Bahrain offers ample and instant access to the U.S. and 
international banking systems.

EXPROPRIATION AND COMPENSATION
In 1976, during a period when most oil producing countries in the region 
nationalized their oil industries, the government fully nationalized the 
extraction of petroleum, paying compensation to the foreign owners of 
the company which had previously operated in that field.  In 1979 the 
government took over a 60 percent share in the petroleum refinery, 
compensating its original owner, the U.S. firm Caltex, which remains as 
administrator and 40 percent owner.  There have been no expropriations 
in recent years, and none are anticipated.  Denationalization, or 
partial denationalization, of some government-owned enterprises may take 
place in the near future.

DISPUTE SETTLEMENT
There have not been any investment disputes in Bahrain over the past few 
years involving U.S. or other foreign investors, although there have 
been cases of lawsuits against businesses and businessmen for nonpayment 
of debts.  Such debt cases are adequately handled by Bahrain's court 
system.  Bahrain has a long-established and clearly-defined framework of 
commercial laws.  English is widely used, and well-known international 
firms of lawyers, working in association with local partners, provide 
expert legal services both nationally and regionally.  Fees are charged 
according to internationally-accepted practices.

Bahrain is a signatory to the New York Convention of 1958 on the 
recognition and enforcement of foreign arbitral awards.  An 
international arbitration center was established in Bahrain in 1995, 
housed in the Chamber of Commerce and Industry building; chairmanship of 
the center revolves through the GCC states, who send representatives 
from their chambers of commerce and industry.

Most commercial disputes are resolved privately without recourse to the 
courts or formal arbitration.  Bahraini law is generally specified in 
all contracts for the settlements of disputes that reach the stage of 
formal resolution.  The guidelines laid down by the International 
Chamber of Commerce (ICC) in Paris are generally respected, and disputes 
are occasionally referred to arbitration at the ICC in Paris.

POLITICAL VIOLENCE 
In 1994-1995, Bahrain experienced several months of civil unrest. While 
the disturbances were directed primarily against the regime, some 
expatriate property, including homes, cars and places of business, were 
also damaged or destroyed by rioters and arsonists. Firm government 
security measures, combined with some steps to address underlying 
issues, appeared to have succeeded in restoring normal order by June, 
1995.

PERFORMANCE REQUIREMENTS/INCENTIVES
There are no special performance requirements imposed on foreign 
investors.  Foreign and Bahraini-owned companies must meet the same 
requirements and comply with the same environmental, safety, health, and 
other labor requirements.  

Companies wishing to qualify for investment incentives must hire a 
specified percentage of Bahraini employees:  30 percent Bahraini 
employees in existing industries, and, for pioneering and downstream 
industries, there is a requirement for 15 percent Bahraini employees the 
first year and 25 percent in subsequent years.  Foreign or Bahraini-
owned factories must also produce a value-added of at least 40 percent, 
and must export at least 25 percent of their production (15 percent for 
existing industries) in order to qualify for incentives.

Officials of the Ministry of Labor and the Ministry of Development and 
Industry supervise companies operating in Bahrain, on a non-
discriminatory basis.  

RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
In general, the Bahraini government does not license companies wishing 
to compete with existing government-owned or parastatal companies, or 
which would be a danger to public health or other aspects of the general 
welfare.  Foreign-owned companies may not be set up for the exclusive 
purpose of engaging in commercial sales in Bahrain, except in minority 
partnership with one or more Bahraini companies, and sales in Bahrain of 
foreign-produced products are mostly accomplished through Bahraini 
agents.

Foreigners may not acquire legal control of a Bahraini company, and 
expatriate ownership of a publicly-listed Bahraini corporation may not 
exceed 24 percent of total outstanding shares.  Foreigners, other than 
nationals of the other five Gulf Cooperation Council (GCC) states, may 
not own land in Bahrain at present although this law may be revised in 
the near future for long-term expatriate residents.

With the above provisos, foreign and domestic private entities may 
establish and own business establishments and engage in all forms of 
remunerative activity.  In general, private entities may freely 
establish, acquire, and dispose of interests in business enterprises, 
subject to the limitations noted above.


PROTECTION OF PROPERTY RIGHTS (INVESTMENTS)
The Bahraini legal system adequately protects and facilitates 
acquisition and disposition of other property rights.

REGULATORY SYSTEM: LAWS AND PROCEDURES (REF: INVESTMENTS)
Bahraini commercial laws allow competition, but limit it in numerous 
ways, for example making importers of goods of a given brand pay five 
percent of the goods' value to the local agent for the brand, setting 
the price of key consumer goods, and limiting the holding of store 
sales.

Bahrain established a "fast-track" procedure a few years ago under which 
companies can complete all registration requirements within seven days.  
The government has established offices (notably the Bahrain Promotions 
and Marketing Board, see Appendix E) with the specific goal of helping 
businessmen through the registration process.

BILATERAL INVESTMENT AGREEMENTS
Bahrain has no bilateral agreements in force at the present time, but is 
in the process of negotiating such an agreement with the U.K.

OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS
On April 25, 1987, Bahrain and the U.S. Government signed an agreement 
regarding the inauguration of activity in Bahrain by the Overseas 
Private Investment Corporation (OPIC).  The agreement opened the way for 
extension of such OPIC facilities as investment insurance, reinsurance, 
and investment guarantees to U.S. private investors interested in doing 
business in Bahrain.

LABOR
The Bahraini labor force as of the end of 1993 totalled about 235,000, 
of whom nearly two-thirds were expatriates.  Half of the roughly 80,000 
Bahraini workers were government employees, and women made up slightly 
more than one-sixth of the Bahrainis in the workforce.  Because modern 
education developed here roughly a generation or more earlier than in 
other Gulf countries, Bahrainis are the most highly-educated of the Gulf 
state nationals, and, since relatively low oil income has not allowed 
the Bahraini government to provide the same level subsidies as other 
states in the region, Bahrainis tend to have a relatively better-
established work ethic as well.  Private employers tend, however, to 
favor hiring expatriate workers on the grounds that they are harder 
working and more productive.  Private employers, both Bahraini and 
foreign, sometimes object to government efforts to encourage them to 
hire more Bahraini employees.

There is a major Bahrainization drive underway, led by the government 
and the General Committee for Bahraini Workers (GCBW), which is seeking 
to provide improved training for Bahraini youths approaching hiring age. 
Several Bahraini companies, including such manufacturing facilities as 
Bahrain Aluminium Extrusion Company (BALEXCO) have more than 95% 
Bahraini staff.

In 16 of the major state-owned industries, joint labor-management 
consultative councils (JCC's) have been set up to provide a means for 
labor and management to discuss issues of mutual concern, including 
labor disputes, wages, working conditions, and productivity.  The JCC 
system covers approximately 70 percent of Bahraini's indigenous 
industrial workers, plus some expatriate workers.  Although there has 
been discussion of possible establishment of JCC's in additional 
companies, there are no Western-style labor unions.

Labor-management relations in Bahrain are relatively smooth; there are 
occasional, though not frequent, brief work stoppages in the private 
sector, but no major strikes in recent years.  Bahrain is a member in 
good standing of the ILO.

Although age levels in Bahrain are generally below levels in OECD 
countries, they are well-above Third World averages, and the government 
has recently attempted to crack down on illegal foreign workers.  
Bahrain's leading industries, particularly petroleum and aluminum and 
downstream industries, tend to be capital-intensive more than labor-
intensive.

FOREIGN TRADE ZONES/FREE PORTS 
Mina Sulman, Bahrain's major port, provides a free transit zone to 
facilitate the duty-free import of equipment and machinery.  Another 
free zone is located in the North Sitra Industrial Estate.  Raw 
materials intended for processing in Bahrain and machinery imported by 
Bahraini-owned firms are also exempt from duty.  Such imported goods may 
be stored duty-free.  Foreign-owned firms have the same investment 
opportunities in these zones as Bahraini companies.

CAPITAL OUTFLOW POLICY
Bahrain has no restrictions on the repatriation of profits or capital 
and no exchange controls.  It provides neither incentives nor 
disincentives for investment in developing countries.

MAJOR FOREIGN INVESTORS
Aluminium Bahrain (ALBA), the Arab Petrochemical Industries Complex 
(GPIC) are each owned as joint investments by several states from the 
Gulf region.  The Bahrain Petroleum Company (refinery) is 40 percent 
owned by the U.S. firm CALTEX.  Recently, the Kuwait Petroleum Company 
(KPC) acquired the former Arab Iron and Steel Company, reportedly worth 
approximately US$70 million.

In 1994, construction was completed on a US$33 million tissue factory, 
jointly owned by Kimberly-Clark (U.S.) and Olayan Saudi Holding Company 
(Saudi Arabia).  In 1993, DHL inaugurated a US$9 million regional 
distribution center at the Bahrain Airport.  A U.S. pipeline 
manufacturer, Shaw Industries, opened a plant in Bahrain in 1994, in 
partnership with a Bahraini firm.

Construction began in 1993 on a US$13 million dollar sulphur derivatives 
plant, with 15 percent ownership by Qatar Industrial Manufacturing 
Company (Qatar) and 10 percent by Arabian Industrial Development Company 
(Saudi Arabia).



VIII.  TRADE AND PROJECT FINANCING

DESCRIPTION OF BANKING SYSTEM
Bahrain is the financial services center of the Middle East.  Utilizing 
sophisticated worldwide communications, it serves both a regional and a 
more broadly international clientele and provides a complete range of 
financial and banking services, including well-developed offshore 
facilities. Legal, regulatory, and accounting systems in the financial 
sector are transparent and consistent with international norms.

The government in 1993 undertook a concerted effort to encourage the 
establishment in Bahrain of major international investment companies.  
In addition, 23 investment banks, mostly foreign, had offices in Bahrain 
as of the beginning of 1995.  Bahrain is the banking center of the 
Middle East, with a sound and well-developed banking system.  The 
estimated total assets of Bahrain's 19 full commercial banks at the end 
of 1993 was $6 billion, with most of that concentrated in the five 
largest banks.  At the end of 1994 there were 47 Bahrain-based Offshore 
Banking Units (OBU's), with total assets of US$64.3 billion; by mid-1995 
the number of OBU's had risen to 50.

FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
There are no foreign exchange controls or other obstacles to the free 
movement of funds. 

GENERAL FINANCING AVAILABILITY
Bahrain's banking policies facilitate the free flow of financial 
sources, with credit generally being allocated on market terms.  Foreign 
investors are able to borrow on the local market, and the private sector 
has access to a variety of credit instruments.

HOW TO FINANCE EXPORTS/METHODS OF PAYMENT
Letters of credit are the preferred method of payment for exports, 
although other means, such as direct transfer of funds, may be used with 
adequate safeguards.

AVAILABLE EXPORT FINANCING AND INSURANCE
EXIMBANK financing can be used for appropriate exports to Bahrain.  

PROJECT FINANCING AVAILABLE
For project financing, Bahrain is the home to 23 investment banks, and 
the Bahrain Development Bank will also lend funds to appropriate local 
projects, not limited to projects of Bahraini-owned companies.

The array of financial institutions in the country give a wide variety 
of options for export and project financing, depending on circumstances 
of the company's need.   

LIST OF BANKS WITH U.S. BANKING ARRANGEMENTS
Five U.S. banks have offices in Bahrain:

a. Full Commercial Bank, OBU, and Representative Office:

   Citibank/Citicorp
   P.O. Box 548
   Manama, Bahrain
   [Tel:  (973) 257124,  Fax:  (973) 250510]

b. OBU's:

   Chase Manhattan Bank
   P.O. Box 368
   Manama, Bahrain
   [Tel:  (973) 535388, Fax:  (973) 535135]

   Chemical Bank
   P.O. Box 5492
   Manama, Bahrain
   [Tel:  (973) 254375, Fax:  (973) 251568]

c. Investment Bank:

   Merrill Lynch International Bank
   P.O. Box 10399
   Manama, Bahrain
   [Tel:  (973) 530260, Fax:  (973) 530245]

d. Representative Office:

   American Express Bank
   P.O. Box 93
   Manama, Bahrain
   [Tel:  (973) 531383, Fax:  (973) 530656]



IX.  BUSINESS TRAVEL

BUSINESS CUSTOMS
Personal contact, frequently renewed, is key to doing business 
successfully in Bahrain.  Visiting businessmen should be prepared to 
spend a portion of any business calls on socializing and on getting to 
know their counterparts, although in general the atmosphere here is more 
time-oriented and "businesslike" than in other countries of the region.

TRAVEL ADVISORIES AND VISAS
Visiting Americans may obtain visas upon arrival at the Bahrain 
International Airport after paying the applicable fee for a 72-hour or 
seven day visa. In 1995 a five-year multiple-entry visa was introduced 
for Americans not resident in Bahrain.  Available from Bahrain Embassies 
or from the Ministry of Immigration in Bahrain, the new visas cost US$50 
in 1995. Visitors wishing to obtain the five-year visa from the Ministry 
can enter the country on a 72-hour or seven-day visa obtained at the 
airport. 

To avoid possible delays if there are long lines at the airport visa 
counters, a visa should be obtained in advance from a Bahraini embassy, 
if convenient.  An Israeli entry stamp in a passport is no longer a bar 
to obtaining a Bahraini visa or to entering Bahrain, but not all airline 
personnel are aware that the former prohibition no longer applies.  

Bahrain's weekend is essentially Thursday and Friday, with most 
government offices operating Saturday through Wednesday, while most 
companies operate full days Saturday through Wednesday plus half-days on 
Thursday.  Employees of offshore financial institutions often follow a 
more Western work week.

The following are approximate dates for Bahraini holidays from August, 
1995 through December, 1996:

August 7, 1995:          Prophet's Birthday*
December 16, 1995:       National Day
January 1, 1995:         New Year's Day
February 21- 24, 1996:   Eid Al Fitr*
April 30 - May 3, 1996:  Eid Al Adha*
May 20, 1996:            Islamic New Year*
May 29-31, 1996:         Ashoora* 
July 28, 1996:           Prophet's Birthday*
December 16, 1996:       National Day

*Dates for religious holidays are fixed according to the Islamic lunar 
calendar and may vary by a day or so from the dates estimated above.

Nearly everyone a business traveler is likely to have to deal with 
speaks at least some English, and Bahraini government officials and 
businessmen are usually fluent in the language.  Hotel accommodations 
are excellent, with a large choice of 5-star hotels.  All hotels are 
equipped with reliable phone and telefax service, and many hotels also 
provide news agency and business wire services.

Rental cars are readily available (international driving license is 
required, although some car hire firms will help travellers to obtain a 
temporary Bahraini driving license), and cabs are easy to find in 
downtown Manama.  There is also a reliable telephone taxi service 
(telephone 682-999) for return transportation from less central 
locations.  Health standards are good, and there is a wide range of safe 
restaurants available, from an array of ethnic restaurants to well-known 
U.S. fast-food chains such as McDonald's, Pizza Hut, Dairy Queen, 
Kentucky Fried Chicken, Hardee's, Fuddrucker's and Taco Maker.


                       APPENDICES
  
A.  COUNTRY DATA

      - Population: (mid-1994 est)  547,000
      - Population Growth Rate: 3 percent
      - Religions:  85 percent Muslim, plus Christians, Hindus,
                    Jews, Bahais, and Zoroastrians.
      - Government System: limited monarchy
      - Languages: Arabic and English predominate; other regional
                   languages also common
      - Work Week: Saturday - Wednesday (half-days on Thursday for
                   many offices)

B. DOMESTIC ECONOMY 

  (in U.S. dollars)               1994            1995          1996

GDP (current prices               4.3 B*          4.36 B*       4.49 B*
GDP Growth rate, p/c  (nominal)   0.0*            1.5*          3.0*
GDP per capital (current pr)  8,100.00*       8,220.00*     8,467.00*
Inflation rate                    5*              5*            5*
Unemployment, p/c                15*             15*          15*
Foreign exchange  (reserves)      1.3 B*          1.3 B*       1.4 B*
U.S. Economic/Military 
Assistance                        -                 -               -
Debt Service Ratio                n/a             n/a            n/a
Exchange rate for US$            0.377BD         0.377BD      0.377BD

*  Embassy estimated or preliminary figures
B* equals billion

C. TRADE (in US$ millions, except where noted)

                                1994             1995          1996
Total country exports          **1,129            n/a           n/a
Total country imports          **2,511            n/a           n/a
U.S. exports                       403            n/a           n/a
U.S. imports                       118.5          n/a           n/a
U.S. share of Bahrain's             14.3          n/a           n/a
imports (in percentage)**     
Imports of Agricultural Goods

- Total Imports                   380            400          425
- From U.S.                        31             33           35
- U.S. share of ag. imports (%)   8.2            8.3          8.2
- Ag. trade balance with U.S.     N/A            N/A          N/A

Trade balance with 3 leading partners in 1994:

  U.S.:  -US$ 285.0 million**
  Japan: -US$ 39.0 million**
  U.K.:  -US$ 215.5 million**
 
Principal U.S. Exports to Bahrain (in US dollars)***
- Civilian aircraft and parts,  377.3 million  
- Petroleum coke (calcined),     44.8 million
- Motor vehicles and parts,      26.8 million
- Corn Oil,                      11.8 million
- Furniture and carpeting,       11.5 million

Principal U.S. Imports from Bahrain (in US dollars)***
- Garments,                      51.2 million 
- Aluminum products,             14.7 million 
- Methanol,                      10.6 million
- Naphthas,                       4.0 million
- Ammonia,                        2.4 million
* Estimated figures

** As measured by Bahraini customs; figures are for non-oil trade only, 
excluding civilian aircraft and military items.

*** U.S. Department of Commerce statistics, 1994.  Including oil 
exports, but excluding aircraft and military items, Bahrain's 1994 total 
exports were US$3,745 million and imports were US$2,536 million.


D. INVESTMENT:  N/A

E.  U.S. AND COUNTRY CONTACTS

BAHRAINI GOVERNMENT AGENCIES:
  Capital Markets & International Financial Services Unit
  Shakir Ebrahim Al Shater, Deputy Director
  P.O. Box 333
  Manama, Bahrain
  Tel: (973) 278677
  Fax: (973) 210363

  Bahrain Promotions and Marketing Board
  Jack Bennett, Chief Executive Officer 
  P.O. Box 11299
  Manama, Bahrain
  Tel:  (973) 533886
  Fax:  (973) 531117

  Ministry of Development and Industry
  Mr. Sager Shaheen, Director
  Industrial Development Directorate
  P.O. Box 1435
  Manama, Bahrain
  Tel:  (973) 525522
  Fax:  (973) 290302

  National Information Technology Unit
  Mr. Shawqi Jassim Al Mutawa
  P.O. Box 1435
  Manama, Bahrain
  Tel:  (973) 290369; 525583
  Fax:  (973) 294188

  Ministry of Commerce and Agriculture
  Dr. Abdulla A. Mansoor
  Director of Commerce and Companies Affairs
  P.O. Box 5479
  Manama, Bahrain
  Tel:  (973) 530335
  Fax:  (973) 530455

  Bahrain Chamber of Commerce and Industry
  Mr. Mohamed Abdul Rahman
  Second Assistant Secretary General
  P.O. Box 248
  Manama, Bahrain
  Tel:  (973) 233913
  Fax:  (973) 241294

Market Research Firms in Bahrain:

  Fortune PromoSeven
  P.O. Box 5989
  Manama, Bahrain
  Tel:  (973) 250148
  Fax:  (973) 274451

  Middle East Research and Consultancy (MERAC)
  P.O. Box 26018
  Manama, Bahrain
  Tel:  (973) 742024
  Fax:  (973) 740061

  Nawat
  P.O. Box 5952
  Manama, Bahrain
  Tel:  (973) 212555
  Fax:  (973) 243555

  Ernst & Young
  PO Box 140
  Manama, Bahrain
  Tel:  (973) 535455
  Fax:  (973) 535405
  Tlx:  8453

Principal Commercial Banks:

  Citibank, N.A.
  P.O. Box 548
  Manama, Bahrain
  Tel:  (973) 257124
  Fax:  (973) 250510

  National Bank of Bahrain B.S.C.
  P.O. Box 106
  Manama, Bahrain
  Tel:  (973) 258800
  Fax:  (973) 263876

  Bank of Bahrain and Kuwait B.S.C.
  P.O. Box 597
  Manama, Bahrain
  Tel:  (973) 253388
  Fax:  (973) 275785

U.S. Embassy Trade Personnel:

  Donald A. Roberts
  Economic and Commercial Officer
  U.S. Embassy Manama
  FPO AE  09834
  (or P.O. Box 26431, Manama, Bahrain, for international mail)
  Tel:  (973) 273300
  Fax:  (973) 256717

  Edwin Porter, Agricultural Trade Officer
  Agricultural Trade Office (A.T.O. - Regional)
  P.O. Box 9343
  Dubai, U.A.E.
  Tel: 971-4-314-063
  Fax: 971-4-314-998

Washington-based USG Country Contacts
 
  Claude Clement, Country Officer
  U.S. Department of Commerce
  IEP/ANESA/ONE
  Room 2029B, HCHB
  Washington, DC  20230
  Tel:  (202) 482-1860
  Fax:  (202) 482-0878

  David Young, Desk Officer
  U.S. Department of State
  NEA/ARP
  Room 4224 N.S.
  Department of State
  Washington, DC  20520
  Tel:  (202) 647-6572
  Fax:  (202) 736-4459

  TPCC Trade Information Center, Washington
  1-800-USA-TRADE

  US Department of Agriculture
  Foreign Agricultural Service
  Trade Assistance and Promotion Office
  Tel: 202-720-7420.

  
D.  MARKET RESEARCH

List of FAS Commodity Reports and Market Briefs
 
- Annual Marketing Plan
- Directory of U.S. Company Representatives
- Weekly Poultry and Egg Price Report
- Monthly ATO Activities Report
- Foreign Buyers List
- Directory of U.S. Food Company Representatives in the GCC
- Update on U.S. Agricultural Exports to the GCC
- GCC Food Shelf Life Standards
- GCC Food Regulations: Salmonella

Note:  Reports are available from the Reports Office, US$A/FAS, 
Washington, DC 20520.


E.  TRADE EVENT SCHEDULE 

The new Bahrain International Exhibition Center (BIEC) opened in 
October, 1991.  This fully air-conditioned facility features 8,000 
square meters of covered exhibition space plus parking for 500 cars.  
The new exhibition center has enhanced Bahrain's position as a leading 
venue for trade shows and conferences in the Gulf region.  The island is 
easily accessible by car via the King Fahed Causeway from Dhahran in 
Saudi Arabia.  Frequent air service is also available from the other 
Gulf states, as well as from major European and South Asian commercial 
centers.  Moreover, Bahrain has five luxury-class and a number of other 
hotels, plus recreational facilities and excellent telecommunications to 
offer business visitors.  

Most international trade exhibitions in Bahrain are organized by Arabian 
Exhibition Management (AEM), an affiliate of the U.K.-based Montgomery 
Organization; the new Gulf RAI International Exhibition and Conference 
Organizers have an increasing schedule of events.

Arabian Exhibition Management WLL
PO Box 20200
Manama, Bahrain
Tel: 973 550033
Fax: 973 553288
Tlx: 9103 EXHIB BN

Gulf Rai International Exhibition and Conference Organizers
PO Box 15431
Adliya, Bahrain
Tel: 973 215566
Fax: 973 215369.

International Trade and Exhibitions 

In 1995/96/97, the international exhibitions being held at the Bahrain 
International Exhibition Center and at other venues include:

- 1995 -
Middle East Computer User Show, Sept. 18-22, 1995. 
Computers, peripherals, software, accessories, training for the small 
office/home office & departmental computer user. Organized by Gulf RAI. 
Venue: BIEC.
      
Gulf International Health Care, October 2-5, 1995.
Venue: BIEC; Organized by International Trade & Exhibitions,          
Mr. Hamid Al Asfoor, Tel: 973 293339; fax: 973 294163.      

Metalexpo '95; Paper & Printing Exhibition, October 11-13, 
1995. Venue: BIEC. Organized by: Mess-und-Ausstellungs-gessellschaft 
OHC.    

2nd International Conference on Loss Prevention and Safety;          
October 16-18, 1995. Venue: Unknown.
Organized by: Bahrain Society of Engineers. In conjunction with:
Save the Environment, October 16-18, 1995.  
Second regional conference of American Society of Civil Engineeers, 
Saudi Arabia Section.

Jewelry Arabia '95, 26-29 October 1995.
The fourth Middle East International Gold, Jewelry, Clock and Watch 
Trade Exhibition.
Organized by AEM; Venue: BIEC.

Computers in Industry, November 6-8, 1995.
Organised by Bahrain Society of Engineers. Venue unknown.

Middle East Industrial Services, Plant Maintenance and
Environmental Technology Exhibition (IPM 95), November 6-9, 1995. 
Industrial process control systems and environmental technology, the 
first such international exhibition in the Gulf. With a conference 
sponsored by the International Solid Waste Association. Organizer: Gulf 
RAI; Venue: BIEC.
      
Autumn Fair '95, 30 November - 8 December 1995. 7th Bahrain Consumer 
Products Fair. Organized by AEM; venue: BIEC.

Environmental Issues in the Petroleum and Petrochemical Industries 
Conference, December 4-6, 1995. Organized by the Bahrain Society of 
Engineers; Venue unknown.

- 1996 -
GCC Exhibition, December 23 - 1 January, 1996.
Organized by the Commerce and Agriculture Ministry. Venue: BIEC.

MEFEX '96, 13-16 January 1996. 9th Middle East International Food, Hotel 
& Catering Exhibition. Organized by AEM; Venue: BIEC. In tandem with:

Middle East Food Technology Show '96, 13-16 January 1996. 2nd Food 
Processing, Packaging and Food Ingredients Exhibition. Organized by AEM; 
venue: BIEC.

Middle East InfoTech '96, 18-21 March 1996. 10th International Computer, 
Information Technology and Systems Exhibition for the Middle East. 
Organized by: AEM; Venue: BIEC.

GEO '96, 15-17 April 1996. 2nd Middle East Geosciences Exhibition & 
Conference.  Organized by: AEM; venue: BIEC.

Airports Middle East 96 Exhibition and Conference, 13-15 May 1996. 
Middle East International Airport Equipment and Technology Exhibition 
and Conference. Organized by: AEM; venue: BIEC.

Middle East Petrotech '96, 10-12 June 1996. Middle East Refining and 
Petrochemical Technology Exhibition and Conference. Organized by: AEM; 
venue: BIEC.

Bahrain Fair '96, 25 June - 5 July 1996. 9th Tourism and Commercial 
Exhibition. Venue: BIEC.

Middle East Computer User Show, 18-22 September 1996. Computers, 
peripherals, software, accessories, training for the small office/home 
office & departmental computer user. Organized by Gulf RAI. Venue: BIEC.

ArabBuild 96, 28-31 October 1996. 10th Middle East International 
Building, Construction, Maintenance and Interiors Exhibition. Organized 
by: AEM; Venue: BIEC. In conjunction with:

Interiors Arabia '96, 28-31 October 1996. 2nd Middle East International 
Interior Design, Furnishings and Lifestyle Show.
Organized by: AEM; venue: BIEC.

Jewelry Arabia '96, 7-10 November 1996. 5th Middle East International 
Gold, Jewelry, Clock and Watch Trade Exhibition. Organized by: AEM; 
venue: BIEC.

Autumn Fair '96, 28 November - 6 December 1996. 8th Bahrain Consumer 
Products Fair. Organized by: AEM; venue: BIEC.

- 1997 -
MECOM '97, 22-25 February 1997. 9th Middle East International Electronic 
Communications Show and Conference.
Organized by: AEM; venue: BIEC.
   
MEOS '97, 15-18 March 1997. 10th Society of Petroleum Engineers' Middle 
East International Oil Show and Conference. Organized by: AEM; venue: 
BIEC.
   
Middle East Infotech '97, 26-29 May 1997. 11th International Computer, 
Information Technology and Systems Exhibition for the Middle East.

In addition to the above exhibitions planned for Bahrain, the following 
event in Dubai, U.A.E. offers opportunities for reaching customers in 
Bahrain. For more information, contact the Agricultural Trade Office in 
Dubai (see address, Appendix E).

MEFEX '96 Food Exhibition, January 1996.

The Agricultural Trade Office in Dubai also plans the following:
In-store promotion of U.S. Food Products, September 1995
In store promotion of U.S. Food Products, May 1996.
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