The emirate emerged just as the price of oil skyrocketed after the 1973 Yom Kippur War; while Bahrain's own reserves were being depleted the high oil price meant there was massive capitalisation in the Kingdom's neighbours. The Kingdom was able to exploit the situation thanks to another war in the Levant in 1975: the Lebanese Civil War. Beirut had long been the financial centre of the Arab world, but the outbreak of hostilities in the country had an immediate impact on the banking industry. Bahrain offered a new location at the centre of the booming Persian Gulf with a large educated indigenous workforce and sound fiscal regulations. Realizing the opportunity to become a financial centre resulted in growth in other industries in the country.
The emirate emerged just as the price of oil skyrocketed after the 1973 Yom Kippur War; while Bahrain's own reserves were being depleted the high oil price meant there was massive capitalisation in the Kingdom's neighbours The Kingdom was able to exploit the situation thanks to another war in the Levant in 1975: the Lebanese Civil War Beirut had long been the financial centre of the Arab world but the outbreak of hostilities in the country had an immediate impact on the banking industry. Bahrain offered a new location at the centre of the booming Persian Gulf with a large educated indigenous workforce and sound fiscal regulations. Realizing the opportunity to become a financial centre resulted in growth in other industries in the country.