meed-logo

line1 line2 line3
SIGN IN / REGISTER

Bahrain industrial strategy aligns with GCC goals

19 December 2023

 

Register for MEED's guest programme 

With limited energy resources and land compared with its larger neighbours, Bahrain needs a targeted industrial strategy that supports economic development across the region and plays to the island kingdom’s strengths. 

“We look to complement the GCC rather than compete,” says Industry and Commerce Minister Abdulla bin Adel Fakhro. 

“We always look for industries where we can fit in each other’s supply chains so that we can substitute imports from outside of the GCC with products from within the GCC.”

The ministry has a strategy for each of its key sectors, with most starting in 2022 and typically running for four years. The strategies encompass industry, small and medium-sized enterprises (SMEs) and digital businesses. Targets include increasing contribution to overall GDP.

Target sectors

Bahrain’s industrial strategy covers five main target sectors.

“Downstream aluminium is very important because we have Alba [Aluminium Bahrain], which is the largest single-site smelter outside of China and continues to expand and grow production,” says Fakhro. 

“We have a new downstream aluminium park to the south of Alba, and the big advantage for companies there is they can buy hot metal.

“We also provide other incentives, such as low-cost land and energy, and provide support with the purchase of equipment. 

“Through the labour fund Tamkeen we can help with the workforce.”

There are also plans to expand Alba with the Line 7 project. Last year, a firm was appointed to complete the feasibility study for the project, which is expected to have a similar production capacity to the Line 6 expansion project – within the range of 540,000 metric tonnes a year.

Petrochemicals is another major industry for Bahrain.

“We have a presence in that sector with Bapco Energies and GPIC [Gulf Petrochemical Industries Company]. They are major producers, so downstream petrochemicals is another opportunity,” says Fakhro. 

Like aluminium, there will be a significant increase in capacity in the near future as the $7bn Bapco Modernisation Programme (BMP), which involves boosting the total throughput at the Sitra refinery to 400,000 barrels a day (b/d) of oil, enters the final stages.

The other three industrial sectors are food manufacturing, medicine production and new sectors including semiconductors and the production of components for use in renewable energies. 

In-country value

To support local industries, Bahrain is establishing an in-country value system that determines a supplier’s local content, similar to those implemented in Saudi Arabia and the UAE.

“Companies with a good in-country value score get a 10 per cent advantage on government tenders,” says Fakhro. 

Bahrain is also working with other GCC states to create an in-GCC programme. “What we are trying to do with this is jointly recognise other countries’ [in-country] value. This means a product produced in Bahrain would get an advantage in another market, such as Saudi Arabia or the UAE,” says Fakhro.

“Likewise, a GCC employee would be equivalent to hiring a local employee. We are looking at different ways to become one market.”

These programmes are still being negotiated, with discussions at the GCC currently centred on determining what constitutes a GCC product.

“That is the start. When we have a clear definition of what a GCC product is, then we can open the doors,” says Fakhro.

As a small country with a long history of being a trading hub, Bahrain is keen to access larger markets. Hence its industrial strategy is outward-looking. As well as working on a GCC-wide in-county value system, there have been several other key developments in recent years.

“We have a very interesting project funded by [Abu Dhabi-based holding company] ADQ. It has four countries: the UAE, Egypt, Bahrain and Jordan. This group of countries came together soon after the Covid-19 pandemic to complete each other’s supply chain,” says Fakhro. 

Known as the Integrated Industrial Partnership for Sustainable Economic Development, ADQ has backed the partnership with $10bn of investment. Its target sectors are agriculture, food, fertilisers, medicines, textiles and apparel, metals, petrochemicals and plastic.

We have a highly skilled workforce that is well-educated with a strong work ethic

Other focus areas

Semiconductors are of particular interest to Bahrain and the country hopes to play an active role in this sector. 

“We are interested in that sector. The world realised that this sector will be critical in the future, and there needs to be manufacturing in other parts of the world so that one nation does not have a monopoly. 

“The sector suits Bahrain because it does not require a lot of energy or land,” says Fakhro. 

“Bahrain’s big asset is its people. We have a highly skilled workforce that is well-educated with a strong work ethic. This attracts all types of businesses in many sectors, especially in advanced manufacturing and the ICT sector,” says Fakhro.

Another important area of focus for the ministry is supporting SMEs and local startups.

“We are working hard to improve the ecosystem for SMEs,” says Fakhro. “The major challenge for SMEs is access to financing. This is not only in Bahrain; it is a worldwide challenge. Bahrain is home to over 300 multinational banks, but still, that doesn’t by default mean that SMEs have easy access to money.”  

The other challenge is access to international markets. “Especially when you look at sectors such as manufacturing, Bahrain will give you limited growth potential. We support SMEs with exports. We have a government-owned entity, Export Bahrain, that facilitates export support for Bahraini companies, including SMEs.”

https://image.digitalinsightresearch.in/uploads/NewsArticle/11372518/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Construction advances on Riyadh King Salman airport

    19 May 2026

    King Salman International Airport (KSIA) is advancing airside infrastructure works under its long-term expansion programme in Riyadh, including the delivery of a third runway and new private aviation facilities.

    Construction activity on the central runway programme is progressing across several operational zones, with works covering excavation, grading, site preparation and taxiway-enabling infrastructure to support upcoming phases.

    The third runway is intended to increase airfield capacity and cater to the airport’s future operational requirements.

    In a separate development, KSIA has completed initial landside works for the private aviation apron, marking a milestone in the rollout of its executive aviation infrastructure.

    The completed scope includes pavement markings, waterproofing systems, firefighting infrastructure chambers and final operational inspections to support readiness for the next stages.

    KSIA has also secured General Authority of Civil Aviation (GACA) approval for phase one airside works, which includes the planned connection of Taxiway Alpha to the private aviation facilities, strengthening operational integration between executive aviation assets and airfield movement areas.

    The packages form part of the wider KSIA masterplan, which covers about 57 square kilometres and supports Saudi Arabia’s objective of positioning Riyadh as a global aviation and logistics hub.

    The airport aims to accommodate up to 100 million passengers by 2030.

    Saudi Arabia plans to invest $100bn in its aviation sector. The Saudi Aviation Strategy, announced by GACA, aims to triple annual passenger traffic to 330 million travellers by 2030. It also targets air cargo growth to 4.5 million tonnes and an increase in total air connections to more than 250 destinations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16906496/main.jpeg
    Yasir Iqbal
  • Aldar launches Al-Ghadeer Gardens project

    19 May 2026

    Abu Dhabi-based real estate developer Aldar Properties has launched the Al-Ghadeer Gardens project, located on the Abu Dhabi-Dubai border.

    The new residential development will feature 437 villas and townhouses, offering two-, three- and four-bedroom homes.

    Al-Ghadeer Gardens will include more than 30,000 square metres of landscaped open space, supporting a pedestrian-friendly layout and outdoor-focused living.

    As part of its sustainability and wellbeing approach, the project is targeting Estidama Pearl 2 and Fitwel 2-star certifications.

    Earlier this month, Aldar announced its Q1 financial results, reporting a 20% year-on-year increase in net profit after tax to AED2.3bn ($626m).

    Aldar Development recorded a 14% year-on-year rise in revenue to $1.7bn, while earnings before interest, taxes, depreciation and amortisation (Ebitda) increased 23% to $599m.

    UAE revenue backlog rose to $17bn at the end of March from $16.6bn at the end of December, with an average duration of 29 months.

    The group attributed its performance to revenue from its development backlog and steady income from its investment properties.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16906154/main.jpg
    Yasir Iqbal
  • Iraq trucks oil from the south to Kurdish pipeline

    19 May 2026

     

    Iraq is trucking crude from Basra to the north of the country to be exported via the Iraq-Turkiye Pipeline (ITP), according to industry sources.

    The oil is being loaded into trucks at fields in Basra before being driven to the north, where it is injected into the pipeline network at Khurmala Dome, in the northern section of the Kirkuk field.

    Once it has entered the network at Khurmala Dome, it is transported to the main ITP export pipeline and eventually to the port of Ceyhan in Turkiye, where it can be loaded onto ships.

    The volumes of crude being transported using trucks have surged in Iraq since the US and Israel attacked Iran on 28 February, starting a regional conflict that has disrupted shipping through the Strait of Hormuz.

    One source said: “Most of the crude that is being trucked out of Iraqi oil fields at the moment is going to Syria, but some is being trucked to the north where it is being funnelled through the pipeline.”

    Even with the additional volumes being trucked from the south, Iraq is struggling to boost exports using the ITP.

    At the end of March, Amer Khalil, the director-general of Iraq’s state-run North Oil Company, said that Iraq was exporting 200,000 barrels a day (b/d) through the ITP.

    At the time, he said that the pipeline, which runs from Kirkuk in Iraqi Kurdistan to the port of Ceyhan in Turkiye, was expected to start transporting 300,000 b/d “in the near future”.

    As of early May, the pipeline was still exporting about 200,000 b/d, despite having a nameplate capacity of 1.4 million b/d.

    One of the factors said to be stopping increased volumes from being shipped through the pipeline is that several key oil fields in northern Iraq evacuated staff and stopped production after the US and Israel started their war with Iran.

    Another factor is that Iraq has not invested in domestic pipeline infrastructure to pipe production from Basra to Kurdistan, where it could be exported via the Kurdish ITP route.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16902345/main1824.jpg
    Wil Crisp
  • Kuwaiti oil services company secures credit facility

    19 May 2026

    The Kuwaiti drilling and oilfield services provider Action Energy Company (AEC) has secured a new credit facility and renewed and expanded an existing facility in order to support the company’s rig fleet expansion.

    The new facility and the expansion were obtained from two Kuwaiti banks and had a combined value of KD40.9m ($132.8m).

    In its statement, AEC said that the facilities support the financing and deployment of new rigs linked to contract awards previously announced with the state-owned upstream operator Kuwait Oil Company (KOC).

    The company added: “They further reinforce AEC’s financing structure and strengthen its ability to execute its contracted fleet expansion plan through 2026 and beyond, while maintaining a disciplined approach to capital allocation.”

    The new credit facility was obtained from Kuwait International Bank (KIB).

    It is worth KD7.3m ($23.7m) and will finance two new 750-horsepower (HP) rigs.

    The renewal and expansion of the existing facility is worth KD33.6m ($109.1m) and was obtained from Commercial Bank of Kuwait (CBK) to finance four new 1,500 HP rigs and one 1,000 HP rig, in addition to the renewal of the existing facilities.

    AEC announced its financial and operational performance for the first quarter earlier this month.

    The company reported a net profit of KD2.2m ($7.1m).

    The company’s revenue grew by 69.2% year-on-year, primarily driven by the expansion of the operating rig fleet from 13 rigs in the first quarter of 2025 to 20 rigs in the first quarter of 2026, including the full-quarter contribution of 10 new rigs deployed during 2025.

    The company is benefitting from a substantial multi-year contracted backlog with KOC.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16902234/main.jpg
    Wil Crisp
  • Emirates awards $5bn engineering complex deal

    18 May 2026

    Register for MEED’s 14-day trial access 

    Emirates Airline has awarded a AED19bn ($5bn) contract to build one of the world's largest engineering complexes in Dubai South.

    The contract was awarded to Beijing-headquartered China Railway Construction Corporation (CRCC).

    CRCC is being supported by French firm Artelia, as the project consultant.

    The complex will cover over 1 million square metres (sq m).

    It will comprise 77,000 sq m of dedicated workshop space for maintenance and repairs, 380,000 sq m of storage and logistics capacity, a 50,000 sq m administrative building for Emirates Engineering and 15,000 sq m of training facilities.

    It will be the world's only complex with a capacity to service 28 wide-body aircraft simultaneously.

    The airline officially broke ground on the project on 18 May. 

    The groundbreaking ceremony was attended by Sheikh Ahmed Bin Saeed Al-Maktoum, chairman and CEO of Emirates Group; Tim Clark, president of Emirates Airline; Khalifa Al-Zaffin, executive chairman of Dubai Aviation City Corporation and Dubai South; and Dai Hegen, chairman of CRCC.

    The facility will enable large-scale retrofits, cabin redesigns and structural modifications to be performed in-house, thereby reducing turnaround times.

    The engineering complex is scheduled for completion in 2030 and will be located at Al-Maktoum International airport.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16895218/main.jpg
    Yasir Iqbal