Wood fuel market in Bahrain

Earlier Report Observations

The wood fuel market in Bahrain opened the 2018-2023 period at a volume of 25.3 thousand m³. High global oil prices above $100 per barrel that year had raised expectations for higher domestic fuel subsidy costs, which likely supported initial consumer interest in wood fuel as a lower-cost energy alternative. However, the market contracted to 23.2 thousand m³ in 2019 and fell sharply to 14.0 thousand m³ in 2020. During these years, government policy maintained stable, subsidized prices for conventional fuels, limiting the economic incentive for consumers and industries to switch to wood-based energy.

A decisive shift began in late 2021 with the launch of a broad financial reform program. The government introduced a dynamic monthly pricing mechanism for gasoline and diesel, significantly raising fuel costs. This policy continued through 2022 and 2023, accompanied by increases in electricity, water, and gas tariffs, as well as new corporate taxes. These measures systematically increased the cost of traditional fossil fuels, making wood fuel a more economically attractive alternative for residential and small industrial consumers. Consequently, the market rebounded strongly, growing to 16.2 thousand m³ in 2021, 21.7 thousand m³ in 2022, and reaching 26.0 thousand m³ in 2023.

The reform trajectory aimed at reducing the fiscal burden of energy subsidies, which exceeded 6% of GDP, further solidified the economic logic for exploring local biomass alternatives like wood fuel. The sustained application of the monthly fuel price adjustment mechanism ensured that conventional energy costs remained elevated, supporting steady demand for wood fuel through the end of the period.

Production wood fuel in Bahrain

In kind, 2017-2020, m³

Top producers of wood fuel, 2017-2020

World map of production of wood fuel, 2017-2020

Bahrain's wood fuel production has grown for the third consecutive year. In 2020, the country produced 7 403 m³ of wood fuel, marking a 1.0% increase compared to 2019. Over the 2017-2020 period, production rose by 3.1%, with an average annual growth rate of 1.0%.

Annual dynamics of production in Bahrain in kind, 2017-2020, m³

Exports wood fuel from Bahrain

Exports in kind, m³

Market performance showed significant fluctuations during this period. The minimum export volume was recorded in 2018 at 361 m³, while the maximum reached 7 880 m³ in 2020, representing a 22-fold difference between these years. In 2020, wood fuel shipments from Bahrain surged by 83.1% compared to the previous year. The largest decline occurred in 2018 with a 45.0% drop, while the most substantial increase was in 2019 at 1 091.4%.

Annual dynamics of product's exports from Bahrain in kind, 2017-2020, m³

From 2017 to 2020, Italy was the primary buyer of wood fuel from Bahrain, accounting for 81.1% of total exports in volume terms. Other trading partners held relatively modest shares during this period.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Bahrain in kind, 2017-2020

Exports in value, K $ US

Bahrain's wood fuel export value has increased for the third consecutive year. In 2020, exports reached 1 087 thousand US dollars, reflecting a sharp rise of 56.4% compared to 2019. Over the 2017-2020 period, export value grew by 377.8%, with an average annual growth rate of 68.4%.

Annual dynamics of product's exports from Bahrain in value, 2017-2020, K $ US

Throughout 2017-2020, Italy and Saudi Arabia together accounted for 90.6% of Bahrain's total wood fuel export value. The remaining share was distributed among other destinations, each with smaller individual contributions.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Bahrain in value, 2017-2020

Imports wood fuel to Bahrain

Imports in kind, m³

In 2020, Bahrain imported 14 430 m³ of wood fuel, representing a 28.5% decrease compared to 2019. Over the 2017-2020 period, imports declined by 34%, with an average annual decrease of 13.0%. The largest increase occurred in 2019 at 9.5%.

Annual dynamics of product's imports to Bahrain in kind, 2017-2020, m³

During 2017-2020, Indonesia (43.5% of imports in volume), Thailand (22.3%), and Vietnam (7.7%) were the largest sources of wood fuel imports to Bahrain. Together, these three countries accounted for 73.6% of total import volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Bahrain in kind, 2017-2020

Imports in value, K $ US

After two years of growth, Bahrain's wood fuel import value declined in 2020. Import volume reached 5 996 thousand US dollars, down 23.5% from the previous year. Between 2017 and 2020, import value decreased by 11.9%, equivalent to an average annual decline of 4.1%. The highest value was recorded in 2019 at 7 840 thousand US dollars, while the largest increase occurred in 2018 at 8.4%.

Annual dynamics of product's imports to Bahrain in value, 2017-2020, K $ US

From 2017 to 2020, Indonesia (37.6% of import value), Thailand (29.3%), and Singapore (5.9%) remained the key sources for Bahrain's wood fuel imports in value terms. Together, these three countries represented 72.8% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Bahrain in value, 2017-2020