II.  LEADING TRADE PROSPECTS FOR U.S. BUSINESS

Aircraft and Parts:  As the headquarters for Gulf Air, which is owned in equal
shares by the governments of Bahrain, Abu Dhabi, Oman, and Qatar, Bahrain
provides a major market for sales of aircraft and parts.  Total aircraft
purchases by Gulf Air for 1993-95 are expected to total 1.7 billion dollars.
In November, 1993, Gulf Air signed an agreement with Boeing to purchase six
Boeing 777 widebodied aircraft for delivery 1998-2000, with an option for the
subsequent purchase of six more.  The total sale, if all 12 aircraft are
ultimately purchased, will exceed 2 billion dollars.  Gulf Air's fleet, as of
June, 1994, consisted of 18 Boeing 767's, eight Boeing 737's, eight Airbus
A-320's, one Airbus A-340, and eight Lockheed Tristars, with five Airbus
A-340's and ten A-320's on order.   Bahrain Airport is also the site of DHL's
new regional distribution center.

Motor Vehicles and Parts: While Japan has long dominated this
sector, estimated to exceed 200 million dollars in 1994, greatly improved
quality of U.S. products, combined with a growing price advantage due to the
recent strength of the yen, gives U.S. companies good prospects for increasing
their share, which amounted to 31.5 million dollars (23.5 percent) in 1992.
More aggressive salesmanship by a General Motors agent greatly boosted sales
of trucks and other large vehicles in 1993.

Air-Conditioning Equipment and Parts:  Bahrain's hot and humid summer climate
makes air-conditioning equipment essential for every home and business on the
island.  U.S. producers of such equipment enjoy a reputation for quality and
service unmatched by other suppliers.  The island has a large inventory of
installed U.S.-origin equipment, generating continuing demand for parts.
According to Bahraini statistics, imports of U.S. air-conditioning equipment
and parts have in recent years consistently amounted to more than half of a
market which in 1993 amounted to 21 million dollars.  Split system units are
increasingly popular in residential and small business applications.  There is
no trade exhibition exclusively for air conditioning and refrigeration
equipment, but the Gulf International Trade Fair (incorporating the previous
"ArabBuild" exhibitions) to be held in the Bahrain International Exhibition
Centre November 3-6, 1994 should be a good venue to market such equipment.

Furniture and Floor Covering:  U.S.-made furniture and carpets have an
excellent reputation for design and quality in the Bahraini market, especially
among the Western-educated middle and upper income groups.  Numerous large
showrooms feature U.S. furniture and carpets.  Total Bahraini imports of
furniture and furniture parts (excluding electrical and plumbing fixtures and
parts) exceeded 42 million dollars in 1993, according to Bahraini import
statistics.