The trade war launched by US President Donald Trump entered the implementation phase, after imposing customs duties by a minimum, and reaching approximately 50% on all countries of the world, without exception.
This step, which came under the item of “Declaration of Economic Independence” of the United States, and the role of new fees in paying government debts, which had rapid and violent repercussions on global markets until yesterday.
Since the early hours of the opening of the Gulf stock exchanges at the beginning of this week, one of its worst sessions witnessed losses exceeding 172 billion dollars in just one day, and the stock indicators in the Emirates and Kuwait opened yesterday’s “Monday” session on strong declines.
Yesterday, he described the “Black Monday” on global markets, as the collapse of European stock markets, and the Hong Kong Exchange declined by 12.4% in the worst session in more than 16 years.
These losses were not limited to stock exchanges, but withdrew the confidence of investors and commodity prices, and began signs of disturbances in global supply chains.
Although Bahrain was imposed only 10%, which is the lowest compared to other countries, the effect was not absent.
The Bahraini market is characterized by its small relative size and its dependence on openness and export as major engines for the economy, which makes any change in global equations directly or indirectly affect it.
However, here lies the opportunity, in the world of economics, there is no crisis without an inherent opportunity, and instead of concern about the repercussions of this trade war, Bahrain can flip the table in its favor, and this crisis turns into a tool for growth.
By focusing on unconventional markets in Asia, Africa and Latin America, it can reduce dependence on the American market, and increase the flexibility of the Bahraini economy in the face of international changes.
Investments and companies looking for a stable environment can be attracted. The commercial war pushes many international companies to reconsider their locations, and here Bahrain, with its strategic location and a flexible organizational environment, can become an attractive destination for regional headquarters and alternative factories.
Products and innovation can also be diversified in the industry. The crisis is an opportunity to review the industrial structure and search for new opportunities in unconventional industries, technology and the green economy, which enhances the competitiveness of the Bahraini product.
Regional economic connection must be strengthened by strengthening cooperation with the Gulf countries and the region to create commercial blocs and joint customs facilities that reduce external influences. At a time when some economies are trembling from the impact of new duties and customs taxes, Bahrain can provide a smart model in converting pressure into an incentive, and challenging an opportunity.
