Industry
From The Report: Bahrain 2020
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Outside of financial services, Bahrain’s manufacturing sector has grown to become the largest contributor to non-oil GDP. The sector has benefitted from rising foreign direct investment inflows, one of the world’s leading global aluminium industries and increasing diversification into value-added production across several segments. Manufacturers and exporters in Bahrain have long exploited significantly lower operating costs than elsewhere in the GCC, generous investor incentives, and well-connected logistics at a network of free zones offering easy access to regional and global markets. As the kingdom moves forward on implementing a large-scale infrastructure development agenda, local manufacturers are also positioned to benefit from rising domestic demand. This chapter contains interviews with Zayed bin Rashid Alzayani, Minister of Industry, Commerce and Tourism and Ali Al Baqali, Acting CEO, Aluminium Bahrain.

Articles from this Chapter

Overview

Upward trajectory: Buoyed by increased investment, key industries look set to propel the sector forward
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Outside of financial services, Bahrain’s manufacturing sector has grown to become the largest contributor to non-oil GDP. The sector has benefitted from rising foreign direct investment (FDI) inflows, one of the world’s leading global aluminium industries and increasing diversification into value-added production across several segments, most notably fast-moving consumer goods (FMCG). Manufacturers and exporters in Bahrain have long exploited significantly lower operating costs than elsewhere…

Interview

Balanced approach: Zayed bin Rashid Alzayani, Minister of Industry, Commerce and Tourism, on boosting competitiveness and job creation
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Interview:Zayed bin Rashid Alzayani In what ways can Bahrain Economic Vision 2030 enhance industrial competitiveness? ZAYED BIN RASHID ALZAYANI: The vision for development to 2030 provides a clear mandate to move towards an economy led by innovation, creativity, manufacturing, production and competitiveness. The manufacturing sector accounts for about 14.5% of GDP and the goal is to increase it to 20%. This strategy seeks to increase Bahrain’s competitiveness so that businesses can internationalise…

Analysis

Major player: Stakeholders offer a positive forecast for the aluminium segment, despite external and internal headwinds
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As one of the world’s top-10 aluminium producers, Bahrain’s raw and value-added aluminium shipments account for the bulk of non-oil exports. With recent rises in manufacturing investment, the sector is set for a year of significant growth in 2020. Majority-state-owned smelter Aluminium Bahrain (Alba) is leading the implementation of the Line 6 expansion project to offer a major increase in production capacity, keep Bahrain among the world’s leading aluminium producers, and significantly…

Interview

Material of choice: Ali Al Baqali, Acting CEO, Aluminium Bahrain (Alba), on the growth of the aluminium market
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Interview:Ali Al Baqali In which ways has the global aluminium market responded to growing trade tensions? ALI AL BAQALI: Global economic conditions continued to weaken in 2019: US-China trade tensions and sanctions and geopolitical events have taken their toll on investors and have added to a downbeat commodities market. Aluminium metal was no exception – the downbeat market sentiment and weak economic activity across global markets have contributed to a slowdown in the growth of demand…

Analysis

Investment destination: Attractive advantages exist for food and fast-moving consumer goods manufacturers
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Recent years have seen direct investment growing in Bahrain’s manufacturing sector. According to the Economic Development Board (EDB) – the kingdom’s export promotion agency – investment in manufacturing rose by 18% in the five years to 2018, and by 4.3% during the first half of 2018. Figures for full year 2018 show that the manufacturing, transport and logistics sectors accounted for a combined 24% of total direct investment to the country, amounting to around $200.3m. This figure…

Overview

Outsized impact: Support for small and medium-sized enterprises is increasingly recognised as key to sustainable growth
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Small and medium-sized enterprises (SMEs) drive global economic growth and employment, accounting for an average of 33% of GDP and 45% of the workforce in high-income countries, and over 60% of GDP and 70% of employment in developing economies. The rise of SMEs has been crucial to economic diversification and resilience, particularly in countries vulnerable to commodity price fluctuations. SMEs have also been at the crest of innovation, taking advantage of their smaller size and greater agility to respond more technological and commercial opportunities. However, SMEs still face obstacles, such as disproportionately high tax burdens, skills…

Overview

Outsized impact: Support for small and medium-sized enterprises is increasingly recognised as key to sustainable growth
OBG
plus

Small and medium-sized enterprises (SMEs) drive global economic growth and employment, accounting for an average of 33% of GDP and 45% of the workforce in high-income countries, and over 60% of GDP and 70% of employment in developing economies. The rise of SMEs has been crucial to economic diversification and resilience, particularly in countries vulnerable to commodity price fluctuations. SMEs have also been at the crest of innovation, taking advantage of their smaller size and greater agility to respond more technological and commercial opportunities. However, SMEs still face obstacles, such as disproportionately high tax burdens, skills…