Bahrain ’s economy: is stability possible with external instability?

Abstract

Bahrain is far from the largest country in the Persian Gulf region. It is inhabited by Sunnis and Shiites, and the death in 2020 of Khalifa bin Salman al–Khalifa, the country’s prime minister, caused a wave of unrest. Improving Sunni–Shiite relations in Bahrain has always been difficult. Despite the financial assistance of some Gulf countries, the fiscal picture remains quite gloomy. Recently, it has been ordinary Bahrainis who have suffered from austerity — most of all Shiites who have gained little from the aid of the above–mentioned countries.The country is striving to diversify its economy understanding the instability of world prices for hydrocarbons, as well as the complex global geopolitical situation caused, among other things, by the events in Ukraine. Along with this, it is advisable to note that Bahrain is the center of the world’s Islamic finance in their regulatory and legislative support.Experts from world institutions do not give unambiguous assessments and scenarios for the development of a country affected by the crises caused by the pandemic and low prices for hydrocarbons, but many of them talk about the need for further financial assistance to the country with a gradual increase in oil prices.

Keywords

• экономика
• кризисные явления
• финансовая система
• исламский банкинг
• финтех
• инновационные технологии
• страны персидского залива