Trade between Saudi Arabia, Bahrain Grows 51% in 8 Years

Vehicles travel into Bahrain from Saudi Arabia on the King Fahd Causeway. (AP file photo)
Vehicles travel into Bahrain from Saudi Arabia on the King Fahd Causeway. (AP file photo)
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Trade between Saudi Arabia, Bahrain Grows 51% in 8 Years

Vehicles travel into Bahrain from Saudi Arabia on the King Fahd Causeway. (AP file photo)
Vehicles travel into Bahrain from Saudi Arabia on the King Fahd Causeway. (AP file photo)

Trade between Saudi Arabia and Bahrain grew from $1.4 billion in 2010 to $2.2 billion at the end of 2017, a 51 percent increase.

Saudi exports to Bahrain account for 40 percent of the volume of trade exchange between the two countries, while Bahraini exports account for about 60 percent.

The industrial sector is one of the pillars of Bahrain's economy, accounting for about 15 percent of gross domestic product (GDP). Consequently, non-oil exports are the main part of the trade between the two countries.

Exports such as cement, iron and construction materials, as well as foodstuffs represent the majority of Saudi exports to the Bahraini market.

Gulf economies collectively constitute a trade market of about $1.5 trillion, while non-oil exports account for $4.8 billion of Bahrain's economy.

Since 2010, Saudi Arabia's exports to Bahrain have grown from $482 million to $894 million, an average of about 86 percent by the end of 2017. During the same period, Bahrain's exports to Saudi Arabia grew 34 percent from $989 million to $1.3 billion.

Metal, agricultural and animal products, foodstuffs, beverages, chemicals and plastics were the majority of products in trade exchange between the two countries.

Bahrain's Economic Development Board attributed the rapid growth of trade between Saudi Arabia and Bahrain to facilitated procedures and logistics between the two countries, especially clearance procedures on the King Fahd Causeway.

Along with the Causeway, the Board expected trade between the two countries to expand after the construction of the King Hamad Bridge. The railway between the two countries will also create great opportunities which will further increase trade in the future.

King Fahd Causeway, Bahrain's only land route, has been transporting a third of Bahrain's non-oil exports to the Saudi market in recent years, reinforcing the importance of establishing the King Hamad Bridge as a second pillar for Bahrain's economy.



Türkiye's Central Bank Lowers Key Interest Rate to 47.5%

A girl sells plastic items to people in the Kadikoy district in Istanbul, Türkiye, Saturday, Dec. 7, 2024. (AP Photo/Francisco Seco)
A girl sells plastic items to people in the Kadikoy district in Istanbul, Türkiye, Saturday, Dec. 7, 2024. (AP Photo/Francisco Seco)
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Türkiye's Central Bank Lowers Key Interest Rate to 47.5%

A girl sells plastic items to people in the Kadikoy district in Istanbul, Türkiye, Saturday, Dec. 7, 2024. (AP Photo/Francisco Seco)
A girl sells plastic items to people in the Kadikoy district in Istanbul, Türkiye, Saturday, Dec. 7, 2024. (AP Photo/Francisco Seco)

Türkiye’s central bank lowered its key interest rate by 2.5 percentage points to 47.5% on Thursday, carrying out its first rate cut in nearly two years as it tries to control soaring inflation.
Citing slowing inflation, the bank’s Monetary Policy Committee said it was reducing its one-week repo rate to 47.5% from the current 50%.
The committee said in a statement that the overall inflation trend was “flat” in November and that indicators suggest it is likely to decline in December, The Associated Press reported.

Demand within the country was slowing, helping to reduce inflation, it said.
Inflation in Türkiye surged in recent years due to declining foreign reserves and President Recep Tayyip Erdogan’s unconventional economic policy of lowering rates as a way to tame inflation — which he later abandoned.
Inflation stood at 47% in November, after having peaked at 85% in late 2022, although independent economists say the real rate is much higher than the official figures.

Most economists argue that higher interest rates help control inflation, but the Turkish leader had fired central bank governors for failing to fall in line with his previous rate-cutting policies.

Following a return to more conventional policies under a new economic team, the central bank raised interest rates from 8.5% to 50% between May 2023 and March 2024. The bank had kept rates steady at 50% until Thursday's rate cut.
The high inflation has left many households struggling to afford basic goods, such as food and housing.