Page 178 - DILMUN NO 19

he Economic istoyr of ahrain

oweer, ahrain has been unfotrunate in its oil income. When the first oil
price hike took place in 173 or so, ahrain was only getting royalties. y the
time of the second oil price irse in the mid 10s, production was limited; so
ahrain was not able to reap uick reenues as opposed to neighboring
audi rabia and United rab Emirates. Currentl,y the oil prices are low een
in nominal terms. Yet, ahrain has managed its little oil resere with
sophistication.'

.0 ECOOIC IVEIFICIO
in light of uncetrainties facing the countyr's oil indust,yr the authoriites made
concetred effotrs to diersify the economy, focusing in patricular on
manufacturing, banking and tourism. Worse, the oil industyr was not able to
sustain a large number of jobs because of the use of capital intensie goods.

.1 ٨UFCUIG
Embarking on an industiralisation programme in the 160s sounded logical
to the authorities. Until the 10s, oil processing was the only manufactuirng
unit. Other projects were then sought because of the rapid depletion of the
countyr's inshore crude source. y and large, joint entures were considered
the most iable, patrly due to the desire for technology transfer and needed
marketing epertise. oreoer, energy-intensie entures were promoted in
patricular because of the abundance of gas. owee,r one such aderse
effect of manufacturing was that traditional industries such as boat building
and weaing gae way to modern industiral units. ltogethe,r manufactuirng
plays a prominent rloe in ahrain's economy. ecentl,y manufactuirng
contirbuted 12.% of G and more than % of total employment.

1 "ahrain, usiness merica, 27 arch 1, 23.

20 bdullah l-Yousit, ٨ ealuation of ahrain's major industires and their future," eds.,
Jeffrey , ugent and heodore . homas, ahrain and the Gul: ast esrpecties and
itematie Futures ew York: t. artin's ress, inc,,1), 130.