Relations between Bahrain and Dubai , which is one of the 7 emirates of the UAE, are based mainly on the unity and trust that Bahrain and Dubai share based on being co-members of the Gulf Cooperation Council. As such international relations between Bahrain and Dubai are governed predominantly by trade relations. However, recently the UAE, which is also the founding member of the Gulf Cooperation Council, is laying added stress on the fact that these countries must foster their ties based more on defense pacts.
Since the economy of both Dubai and Bahrain are based on oil, it is only but natural that these countries would enter into several deals regarding the export of oil. Since the UAE also is the largest member of the GCC it plays the role of a moderator within the Organization of Petroleum Exporting Countries. Dubai, which is one of the Emirates, is instrumental in formulating rules regarding the export of oil and also lays them down in front of such members as Bahrain. Dubai and Bahrain , being the wealthiest of the nations within the Muslim Arab world, are also engaged in providing funds to lesser developed Muslim economies from the immense wealth they accumulate from the export of oil.
Following the Gulf War, Dubai and Bahrain, along with other members of the GCC share common sentiments regarding the expansion of their defense forces and the countries are depending on each other to help achieve this goal by securing the affirmation of EU and the USA. Besides sharing the common ideologies of the GCC, Dubai and Bahrain also share common real estate deals and projects which are mostly being financed by foreign investors.
