Industry
From The Report: Bahrain 2013
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Projects aimed at expanding the metals and petrochemicals segments are underway, with the current aluminium production of 2m tonnes set to increase to 10m tonnes by 2020 and plans from the Gulf Petrochemicals Industries Company to triple output of ammonia related products. There has also been a drive to create favourable conditions for foreign investment, including numerous business parks and revamped regulation. Considerable efforts are also being made to aid small and medium-sized enterprises, with greater integration of regional supply chains and further expansion of downstream industries seen as offering them a potential boost.

This chapter contains interviews with Chris Potter, CEO, Arab Shipbuilding & Repair Yard; and Tim Murray, CEO, Alba.

Articles from this Chapter

Overview

Looking to the future: Still maintaining its competitive edge, the country is opening up to new opportunities
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With a long history as a pioneer in the Gulf region, Bahrain was the first country to discover oil in the 1930s. It was also the first to face the issue of declining reserves, replacing reliance on hydrocarbons by developing one of the first heavy industries in the region, Aluminium Bahrain (Alba), in the mid-1960s. During the 1970s and 1980s the country saw continual growth in industrial output, building up a base in petrochemicals and metals. While other Gulf states with greater oil and gas…

Analysis

Full of possibilities: Downstream industries present great potential
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Plastics consumption in the Gulf region has been growing exponentially over the past decade. According to a report from the Gulf Petrochemicals and Chemicals Association (GPCA), between 2011 and 2015 consumption of plastics in the region is set to grow from 3.3m tonnes per annum (tpa) to 5.5m tpa. The GPCA puts the value of the GCC petrochemicals industry at around $74bn. Plastics pack a high value added, currently accounting for some 20% of total petrochemicals output in the Gulf by volume and…

Interview

OBG talks to Chris Potter, CEO, Arab Shipbuilding & Repair Yard (ASRY)
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Interview:Chris Potter What are the significant trends in the industry that will impact the future of the region’s repair yards? CHRIS POTTER: Due to the fact that ship operators’ repair schedules and scopes are still being kept to a minimum, 2013 will continue to be challenging for any yard that relies solely on ship repair. The biggest challenge in the ship repair industry in the Gulf is to expand market share despite a persistent depression in the industry, while simultaneously responding…

Interview

OBG talks to Tim Murray, CEO, Alba
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Interview:Tim Murray How would you characterise current competition in the aluminium export market? TIM MURRAY: Competition is reasonably challenging at the moment. Market analysts estimate that aluminium consumption, which was 42m tonnes in 2011, will grow at an average of 6% per annum in the next decade. Therefore, there will be a need to produce another 3m tonnes to cater for the additional demand, as well as to compensate for the closures of obsolete smelters. This growing demand will…

Analysis

Keeping options open: The government is keen on increasing foreign investment and securing new partners
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Foreign direct investment (FDI) forms a key plank of Bahrain’s development strategy. On its own, the size of the country means that both the internal market and its ability to provide capital are limited. At the same time, Bahrain has less oil and gas reserves than many of its neighbours, and as such, is looking to diversify its economy away from hydrocarbons and develop export-oriented industries. Thus, by drawing foreign investment, Bahrain can position itself as a base from which to access…

Analysis

True as steel: Continued investment and expansion will generate further growth
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The metals industry is arguably one of the most important and certainly one of the oldest industries in Bahrain. Of the country’s non-crude oil exports, the metals sector, along with petrochemicals, has traditionally been a leader. Metallurgy, particularly aluminium, has been seen as a lucrative way for the country to monetise its gas reserves effectively, and as a means of laying the foundation for a thriving downstream sector. Sustained investment means the industry is continuing to grow…