Bahraini stocks are among the cheapest in the world.

The BB All Share Index has declined 25 days out of 29, is trading near the lowest level since January 2014 and hasn’t closed 1 percent higher on any day this year.

The smallest member of the six-nation GCC and host to the U.S. 5th Fleet, Bahrain relies on the financial industry for as much as 17 percent of economic output and counts on some of the most liberal business regulations in the region to attract investment.

The slump in Bahrain’s equities has cut the 12-month forward price-to-earnings ratio for its stocks in MSCI Inc.’s frontier markets index to 7.6 times, fourth-lowest among members of the gauge and cheaper than all emerging markets except Russia, according to data compiled by Bloomberg.

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