Interview: Abdulla bin Adel Fakhro
What steps is Bahrain taking to bolster its competitiveness as an investment destination, particularly in industry and manufacturing?
ABDULLA BIN ADEL FAKHRO: The government’s Industrial Sector Strategy 2022-26 envisions a developed and sustainable industry landscape built upon innovative and advanced technologies. The strategy aims to bolster the industrial sector’s contribution to GDP, boost its exports and create high-quality job opportunities for locals.
Bahrain has set ambitious industrial targets for 2026, including BD5bn ($13.3bn) in industrial investment and exports, 20,000 Bahrainis employed within the sector, and a BD4.5bn ($11.9bn) contribution to GDP. The country also aims to achieve top GCC and global rankings in the UN Industrial Development Organisation’s Competitive Industrial Performance Index.
To achieve these goals, the strategy outlines 36 initiatives focused on promoting local industry, providing career guidance for Bahrainis, improving the investor experience, investing in infrastructure and updating regulations. These initiatives encompass a range of measures, including incentive programmes, industry-specific enablers, process re-engineering and comprehensive human-capital-development schemes.
How can the private sector contribute to expanding industrial capacity, and how do you see the role of public sector evolving within this space?
FAKHRO: The contribution of the private sector is integral to expanding industrial capacity. In essence, closing the market gap via improving the value chain of the manufacturing process or implementing new industrial projects is an essential role of the private sector, while the government provides various initiatives to enable private players to further contribute to GDP.
Additionally, private sector involvement can promote entrepreneurship and attract investment to Bahrain. By partnering with international companies or attracting multinational corporations, the private sector can bring in expertise, capital and access to global markets, contributing to the expansion of the industrial sector.
The public sector plays a crucial role in providing infrastructure and support services. Public sector firms can develop and maintain industrial zones, provide utilities such as electricity and water, and facilitate logistics and transportation networks that are vital for industrial operations. Moreover, public sector organisations can contribute to the industrial sector by fostering collaboration and partnerships between public and private entities. These companies can promote research and development initiatives, offer training programmes, and support innovation within the industrial sector.
To what extent are technological advancements related to Industry 4.0 raising the appeal of the country’s manufacturing sector?
FAKHRO: Industry 4.0, characterised by automation, data exchange and advanced technologies, is revolutionising Bahrain’s manufacturing sector. The government’s iFactories initiative, and investment in infrastructure and public-private partnerships are facilitating digital transformation. By addressing the challenges through targeted investment, skills development and robust policies, Bahrain can ensure growth that is both sustainable and inclusive in its manufacturing sector and leverage Industry 4.0 to its full potential.
The iFactories scheme, in line with the Industrial Sector Strategy 2022-26, aims to transform 300 factories into smart factories by 2026 by adopting the best regional and global practices in managing production lines. This will ensure the sustainability of the industrial sector by enhancing the effectiveness of resource management, raising its productivity, increasing the efficiency of the sector and raising its competitiveness locally, regionally and internationally. The initiative also aims to accelerate and stimulate research, development and innovation in the sector and create the appropriate technical infrastructure to attract more investment.
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