Page 325 - Records of Bahrain (7) (ii)_Neat

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Economic and financial affairs 715
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JBBQB&T

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on Saudi Arabia for GO# of the crude oil refined in 13ATC0* c

refinery - iG unhealthy. Bahrain suffered one setback in
1957 and 1950 when the collnpce of the Saudi Arabian economy
had an immediate and direct effect upon Bahrain*s re-exports:
in these two ycaro the island re-exported only 35-0# and
36.79# of its imports, as against 43*0# in 1956. The percentage
of re-exports rose in 1959 to 41-56# due to the improvement in
Saudi Arabia's finances (and to delays in off-loading cargo
at Umm Said in Qatar: which caused it to bo routed through
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Bahrain) biit the near-depression which now exists in Saudi Arabia
i
1g again enuoing concern here.
11. The Saudi Arab! \n Government ia also building a deep­
water harbour at Dammam which| according to our colleagues in
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the American Consulate-General there, will be operational in
July 1961 , and greatLy speed up the unloading of cargo.
One obstacle in the vay of the efficient despatch of direct
cargo to Eastern Sauli Arabia will then have been removed; and
the Saudi Government will inevitably encourage the maximum
the port to Bahrain's jlisadvantage.
use of
1 2, On the other hapd there are traditional reasons for the
trade between Bahrain and Eastern Saudi Arabia, Bahrain
became an important trading centre becuuso of ito proximity
to the pearling grounds and alco because as an island it
afforded greater security for traders than did the mainland.
A rich and experienced trading community therefore grew up
in Bahrain which served the mainland of Eastern Saudi Arabia,
particularly in the provision of credit, a sorvico which
Bahrain merchants give to their Saudi customers to this day.
To a groat extent, therefore, Eastern Saudi Arabia came to
depend upon Bahrain for the goods it required and no able

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