The 2 Kingdoms are brought closer by the Causeway
Roads are important.
Even though air travel and cargo ships have taken over much of the transportation sector over the past few years, roads continue to be an important method of transport for many countries.
They are also characterised by small distances (in relative terms) between two places. A direct road link between two nations is often the key to promoting and growing trade and other relations between them.
This is especially true in the case of two vastly different, but still very close countries in the Middle East – Bahrain and Saudi Arabia.
One is an island nation that does not have many natural resources besides its people. The other is a large regional economic powerhouse that produces everything from oil to mango juice.
But these differences have never stood in the way of their strong relations. In fact, both countries have relied on each other for their distinct offerings to grow together. Manufacturers in KSA rely on the markets in Bahrain to sell their goods and the refineries in Bahrain rely on crude oil that is produced in KSA.
This interdependence is characterised by the perennially busy and ever-important road connecting the two gulf nations – King Fahad Causeway.
History of the King Fahad Causeway
Spanning over 25 Kilometers of the sea and reclaimed land, it is one of the more impressive engineering feats in the region. It is also the second-longest causeway in the world.
This engineering marvel was not created in a day. It took several years of planning and effort to become what it is today.
Initial planning began as early as 1954 and official plans began to take form in 1965. With several decades of effort from both countries’ leadership, and support from the World Bank, the King Fahad Causeway was finally inaugurated in 1986 by both countries’ leaders at the time – King Fahad of Saudi Arabia and Shaikh Isa bin Salman Al Khalifa of Bahrain.
Named after King Fahad himself, the causeway sees thousands of passengers every hour. It saw its highest number of passengers in early 2020 before the COVID-19 pandemic when 131,000 passengers crossed the border on the causeway in one day.
Why the Causeway is important to Bahrain’s economy
Why is the number of passengers so high on the causeway?
It is unlikely that these high passenger numbers are made solely by the drivers of commercial trucks. In fact, many of these passengers are private travellers from the two countries.
Bahrain relies on residents and citizens of Saudi Arabia for much of its revenue in the tourism industry. In 2018, arrivals from Saudi Arabia made up a massive 87% of inbound tourist numbers for Bahrain.
These visitors also help the economy by spending there, with hotels and other attractions serving the tourists benefiting greatly from the Saudi visitors. It also helps that Bahrain is a popular destination for shopping.
Visitors from KSA who come to Bahrain for shopping at its many malls and markets bring large amounts of collective funds that stimulate the retail sector in the country. It is not uncommon to see the malls and markets in Bahrain be populated by customers that are visitors from KSA. For Bahrain to fulfil its potential and become MENA’s premier tourism destination, attracting visitors from KSA will be key.
Bahrain also relies heavily on crude oil that is imported from Saudi Arabia for its refineries. Only 17% of the crude oil that is refined here is generated from Bahrain’s own oil fields.
Why the Causeway is important to Saudi Arabia
Citizens and residents of Saudi Arabia have always relied on Bahrain to enjoy their leisure. With more moderate laws in place compared to that of KSA, Bahrain offers a wide range of entertainment opportunities to its visitors.
The country has the region’s first-ever F1 Track, the world’s largest underwater theme park, several opportunities to enjoy its pristine beaches and many more.
The Causeway offers these visitors a fast and easy way to travel to Bahrain to gain access to all of these, and more.
Also, manufacturers from KSA like Al Marai, for example, rely on Bahrain’s local market for much of its goods that are produced in Saudi. There are often fleets of trucks carrying commodities at the border in the middle of the King Fahad Causeway, awaiting authorisation to cross the border.
The two countries have always enjoyed very strong relations, with similar international policies and close alignment in most strategical matters. This strong relationship is made possible to some degree, by the ease of travel between the two nations.
Easy access to each other for residents of either country means there are strong connections among the people. 17 percent of the short term arrivals in Bahrain from Saudi in the year 2018 was for visiting their friends and families.
This statistic alone is evidence enough, of how close the two countries’ citizens are.
How the King Fahad Causeway will continue to be important to Bahrain and KSA
The impacts of the pandemic on travel have impacted the Causeway as well. Tourism arrivals fell drastically during the pandemic as strict border controls were put into action to combat the pandemic.
However, despite the fall in visitor numbers, trade between the two countries actually recorded growth.
Trade between Bahrain and Saudi Arabia grew by a massive 43 percent during the third quarter of 2020, despite the continuing effects of the pandemic.
The two countries have never been closer together, and with borders now open for travel, they will continue to grow together. Both countries have their own plans to strengthen their respective economies, with their goals for the year 2030.
Bahrain plans to rely on three fundamental principles to help guide its economic transformation: Sustainability, Competitiveness and Fairness. These three principles are a strong part of its efforts to diversify its economy with the year 2030 in mind.
Saudi Arabia has its own set of goals for 2030 as well. Guided by the three pillars of ‘a vital society, a thriving economy and an ambitious nation’, the country has lofty goals for its post-oil economy.
Together, the two Gulf nations can continue to work and achieve their collective goals.