Dr Hassan A. Fakhro, Minister of Industry and Commerce, who opened Invest in Bahrain Forum 2011 in the presence of the His Royal Highness Prime Minister Prince Khalifa Bin Salman Al Khalifa, said that much effort had been made over the past decades to create a truly enabling environment and enhance the diversification process which the wise leadership embarked on since the discovery of hydrocarbons in the early 1930s.
The one-day Forum attracted over 1000 delegates was held in co-operation with the Federation of GCC Chambers, EDB, Labour Fund, IDB and other leading public and private sector entities.
“In the 1970s we began using our reserves of natural gas to fuel industries which had their beginnings in aluminum and petrochemicals production. The 1970s was also a watershed in terms of the financial services, supporting commercial environment, with a whole raft of new laws being passed, and treaties signed, which fundamentally defined the shape of Bahrain’s economic future,” he said.
“Following the diversification, manufacturing in Bahrain progressed to the extent that its contribution to GDP increased from less than 9% in 1980 to over 17% now, and non-oil industrial revenue has grown by 27%. In fact real manufacturing output increased by 106% between 2001 and 2008, due to the higher outputs in other manufacturing sectors, primarily in metals, chemicals, mineral products, food and beverages, textiles, ship repair and others,” Dr Fakhro said.
He also underlined the importance of the Bahrain’s free trade agreement with the United States which according to him served as a catalyst to increase the annual FDI flow from 2006 onward.
“The massive increase in FDI since 1990 has been due primarily to the attention which the Government has placed on building a sophisticated infrastructure which caters to the needs of legitimate business; and in developing an international reputation based on the application of the rule of law, and which has also resulted in the Kingdom becoming the acknowledged as regional financial centre and one of the world’s most important centers for Islamic banking,” he explained.
“It is clear that manufacturing does and will continue to play an important role in the economy, both in terms of generating revenue, and also in providing employment opportunities for the growing population, and it is for this very reason that our industrial policy is focused on creating high value added industries in those sectors of the economy which the Government has identified as being attractive and supportive of building of a knowledge based economy,” he said.
“The government has made substantial investments in facilities such as the Bahrain International Investment Park (BIIP), which is part of the overall holistic concept of the Salman Industrial City (SIC). The SIC comprises the established Hidd Industrial Area, home to 30 of Bahrain’ s most significant industries, BIIP, and the Bahrain Investment Wharf (BIW).
The BIW, is the $1.6 billion development of the company Tameer and is the currently the largest mixed use industrial development of its kind and size in Bahrain. On the other hand, the BIIP is built to the highest international standards, consists of 2,500,00 square meters and is designed to attract export oriented companies with high value projects and has already attracted billions of dollars in investment and will create thousands of skilled jobs by the time that all current projects come on stream,, and with around 80% of the BIIP already let, and will take manufacturing to the next level; support the achievement of Vision 2030 and provide even more incentives for investors to consider Bahrain as the home for their investments in the region. Indeed the BIIP came first by in the Business Globalization in Direct Investment Promotion contest for 2011/2012.”
However, more than just manufacturing opportunities in Bahrain is the huge opportunity that presents itself for investors to establish a presence to cater for the demand of the entire Middle East Region. For sure the industrial capabilities of the region are expanding, and in my view it is now an opportune time for foreign manufacturers to establish international production facilities in the region and gain market share, before the regions’ manufacturers begin knocking on the doors of their markets.
“Bahrain offers the best facilities and incentives for investors to establish businesses; offers the most business friendly environment with light-touch regulations, a very attractive cost base, and with the eventual development of the causeway to Qatar, the Kingdom will be uniquely positioned to provide the best connections in the region. And also expand in the overall MENA region,” the Minister added.