Page 180 - DILMUN NO 19

he Economic istoyr of ahrain

4.٥ E EOEU O IIG ECO

Oil discoeyr is credited for helping to bring about growth and change in the

administration, economy, education and urbanisatioi, among other areas.

oreoer, oil reenues enabled the goernment to get significantly inoled

in the economy by inesting on infrastructure and redistributing income, he

oil actiity in the 130s helped to open up the region including ahrain in

patricula,r to the outside world, as opposed to total riitsh domination.'a he

discoeyr could not hae more timely for taking place sholtry atfer the demise

of the pearl diing industyr; the iol enterprise not only saed ahrain from a

major catastrophe but also laid the foundation for a birghter future.

ahrain deeloped a petroleum based economy in the region after lran but
before audi rabia. Flolowing the iol discoeyr in lran in 10 by the nglo­
ersian Oil Company OC), ahrain's ruler agreed to a ritish reuest to
aoid granting oil concessions to any patry without the approal of ondon.
ajor Frank olmes, a riton in ahrain on behalf of a ew 2ealand firm,
was awarded the rights for fie years, ased on his engineering background,
but against many odds, olmes had a strong coniction that ahrain's soil
contained oil.13 itll, olmes failed to arouse enthusiasm among iritsh firms
only because it reuired ifnancial obligations; yet meircan oil firms were
ready to inest in ahrain.14 lnterest shown by ocal or tandard Oil
Company of California now Cheron) saed the da.y ondon agreed that
ocal be granted the drilling business, but not before etensie negotiaitons
inoling high-ranikng goernmental oiffcials from both the U.. and irtain
took place. ahrain etroleum Company apco) was registered in Canada
in the late 120s to meet a ritish soereignyt clause.1 For the U.., the
apco business opened up the way for etraordinayr fotrune and a critical
role in the region's oil enterprise,16 Under terms of the agreement, ahrain's
ruler was guaranteed a royal,yt irlling began in October 131 and oil was
discoered in 132,17 si years prior to the oil discoeyr in audi rabia.

12 osemarie aid 7ahlan, he aikng of the doem Gulf tates ondon: Uniwn yman
td., 1), 1.