The Bahraini government has launched major development projects in the infrastructure and transportation sectors in recent years with additional projects envisioned but without allocated funding. Phase 1 of the New Aiport Passenger Terminal at Bahrain International Airport (BIA) opened in January 2021, increasing BIA’s annual passenger capacity from 8 million to 14 million travelers, and expanded cargo handling capacity to 1 million metric tons per year. Bahrain Airport Company is seeking to attract investors to develop a “cargo village” and maintenance, repair, and overhaul (MRO) operations to utilize the airport’s available capacity. Gulf Air will also relaunch direct flights to the United States in October 2025 after a 30 year hiatus.
The $2 billion Bahrain Metro Project, announced in 2021, is currently under review and projected to cover approximately 68 miles with four transit lines and 20 passenger stations through a four-phase, seven year implementation plan. The King Hamad Causeway, estimated to cost $4 billion, will supplement the existing causeway between Bahrain and Saudi Arabia and boost overland access to Saudi Arabia and the wider GCC market through a new four-lane highway and two passenger and cargo rail lines, with expedited customs procedures already in place to facilitate greater traffic flow. In 2024, Bahrain and Qatar announce they would jointly assess the viability of a $3 billion causeway linking the countries. However, these projects have yet to move forward and U.S. companies interested in these opportunites should continue to monitor the Ministry of Transportation and Telecommunications’ websites for updates.
Other critical infrastructure projects are moving forward, including development of the U.S. Trade Zone (a site for light manufacturing and logistics operations adjacent to the Khalifa Bin Salman Port in Al-Hidd) expanding roads to less-developed parts of the country, and connecting all residents to Bahrain’s national fiber optic network.
In the short-term, the development and commercialization of several additional conventional oil and gas finds represent major opportunities for U.S. oil companies that provide exploration, production, transportation, refining, and other services. The Bahraini government’s plans to expand and upgrade production lines at state-owned enterprises, including Gulf Petrochemicals Industries Company (GPIC) and Bapco Energies are underway. In 2020 the Bahraini government commissioned a new LNG import terminal, which began operation in 2025.
Over the long-term, the Bahraini government seeks to leverage a civil nuclear memorandum of understanding with the United States to build capacity in small, nuclear modular reactor (SMR) technology and supplement power generation for heavy industry and general consumption.
Other key growth sectors for U.S. industry include logistics; financial services; telecommunications and digital economy; tourism; and the industrial and the energy sectors, including oil and gas.
Public and private sector demand for digital technologies including virtual communication, e-learning, big data analytics, artificial intelligence, and cloud based products and services remains strong. In November 2024 Bahraini digital services company Beyon announced its Digital City mixed-use digital development project that will include Beyon’s main headquarters as well as research and development centers, healthcare facilities, recreation centers, and educational institutions. International companies will be able to establish offices in Digital City.
In accordance with Law No. (56) of 2018, concerning the provision of cloud computing services to foreign parties, Bahrain has granted the United States sovereignty over data held by U.S. companies in Bahrain-based data centers. The government of Bahrain implements similar agreements with other countries.
The national healthcare system meets the overall needs of the country’s total population. Opportunities exist, especially as Bahrain’s health sector remains a popular destination for American-made medical devices and technology and Bahrainis are eager to expand educational exchanges between universities and research institutes and professional training opportunities for healthcare specialists. The normalization of diplomatic ties with Israel in September 2020 under the banner of the Abraham Accords offers additional opportunities for technical exchanges and scientific training. A number ofhealth sector infrastructure projects are also underway, including the construction of the $300 million King Abdullah Medical City Hospital. In March 2023, Bahrain Pharma was the first facility to begin manufacturing pharmaceutical products in Bahrain. The $70 million King Hamad American Mission Hospital opened in early 2023 and formalized a partnership with a major U.S. hospital network and an Israeli research institut
Financial technologies (FinTech) is also a growing sector in Bahrain. As part of the Bahraini government’s push to reinforce its position as a regional financial center, the Bahrain Economic Development Board (EDB) and Singapore’s FinTech Consortium inaugurated a leading MENA FinTech hub, Bahrain FinTech Bay, in 2018. Bahrain maintains a business-friendly FinTech regulatory environnment, and was the first MENA country to license a cryptocurrency exchange in 2019. Bahrain hosts digital banking firms, and enterprises with e-wallets, blockchain, smart contracts, artificial intelligence, risk management, and other FinTech specializations/capabilities. Since 2018, the Central Bank of Bahrain has fostered FinTech startups in its regulatory sandbox, including cryptocurrency exchange Rain Financial which raised $110 million in funding from Silicon Valley investors in January 2022.
Companies that produce qualifying manufactured products in Bahrain can access GCC markets duty free under the GCC Customs Union.