Industry
From The Report: Bahrain 2017
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From heavy industries largely owned by government entities to regional headquarters for multinational companies, Bahrain has a vibrant manufacturing sector that is growing steadily and playing an increasingly important role in the economy. The global downturn in both crude oil and commodities prices squeezed profit margins despite record production by Bahrain’s petrochemicals plants and aluminium smelter. However, the country is continuing to invest in the most ambitious industrial expansion plans for over a decade to capitalise on future global demand for its output. The single-biggest investment in the industrial sector is the $3bn project to build a sixth potline for Aluminium Bahrain (Alba), which will be the company’s largest expansion since potline five came on-stream in 2005. However, this individual development is part of a cluster of inter-related investments in Bahrain’s upstream and downstream industries that are designed to fire up the economy, attract additional investment and ensure long-term prosperity for the country’s citizens.

This chapter contains interviews with Zayed R Al Zayani, Minister of Industry, Commerce and Tourism; and Tim Murray, CEO, Alba.

Articles from this Chapter

Overview

Ambitious plans: The government is taking a long-term view, with significant investments in upstream and downstream industries
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From heavy industries largely owned by government entities to regional headquarters for multinational companies, Bahrain has a vibrant manufacturing sector that is growing steadily and playing an increasingly important role in the economy. The global downturn in both crude oil and commodities prices squeezed profit margins despite record production by Bahrain’s petrochemicals plants and aluminium smelter. However, the country is continuing to invest in the most ambitious industrial expansion…

Interview

Coming attractions: Zayed R Al Zayani, Minister of Industry, Commerce and Tourism, on reforming the ministry to better serve business
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Interview: Zayed R Al Zayani How has the Ministry of Industry, Commerce and Tourism made Bahrain a more attractive destination for foreign investors? ZAYED R AL ZAYANI: The regulatory changes focus on improving the ease of doing business: an area where obstacles were identified and remedial actions were promptly initiated, laws updated and operating processes re-engineered. Industrial Areas Affairs went through a restructuring process that resulted in two directorates: the Industrial Areas Operations…

Interview

Keeping due measure: Tim Murray, CEO, Alba, on developments in the global aluminium industry
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Interview: Tim Murray How long do you think it will take the aluminium industry to recover from the drop in prices? TIM MURRAY: The world will continue to experience the aftershocks of lower commodities prices as long as the dollar is appreciating in value. In the first half of 2016 we witnessed the collapse of “all-in” aluminium – the London Metal Exchange price plus regional premiums – exerting further pressure on marginal producers to cut output around the world. Aluminium prices are…

Analysis

Diverse investments: The state-owned holding company has recently taken stakes in a multitude of businesses around the world
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Created in 2006, Bahrain Mumtalakat Holding Company owns controlling or significant stakes in many of the kingdom’s major businesses and has made strategic investments in companies in other countries. A core aspect of Mumtalakat’s portfolio revolves around managing the government’s commercial interest in many of the country’s most significant companies. EXISTING PORTFOLIO: Gulf Air is 100% owned by the fund, and it also controls 69.38% of Alba stock, 44.18% of the National Bank of…

Analysis

Full steam ahead: Expanding the kingdom’s aluminium production capacity
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In October 2016 Alba secured the biggest corporate loan in the history of the kingdom, as conventional and Islamic banks offered it $1.5bn in the first tranche of funding that will finance the $3bn potline six expansion. The government’s investment arm, Mumtalakat Holding Company, controls 69.38% of Alba, and the project is a key component of the country’s strategy to invest now in order to reap rewards in revenues and new jobs when global commodity prices start to rise again. The government…