Industry
From The Report: Bahrain 2018
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Since the 1970s Bahrain has made a concerted effort to diversify its economy, with efforts visible in the vibrant manufacturing segment and from the growth of the kingdom’s heavy industries. Despite the drop in state revenues due to lower global oil prices in recent years, Bahrain continues to invest in its industrial sector, notably with the $3bn expansion of Aluminium Bahrain, which will see production grow to 1.5m tonnes per year – a rise of over 500,000 tonnes. Meanwhile, Bahrain continues to capitalise on its oil and gas resources, with significant investment in the downstream petrochemicals segment. This is highlighted by the $5bn being spent on the modernisation taking place at Bahrain Petroleum Company and the $515m gas plant expansion by Bahrain National Gas Expansion Company.

This chapter contains an interview with Zayed bin Rashid Alzayani, Minister of Industry, Commerce and Tourism; and Tim Murray, CEO, Aluminium Bahrain.

Articles from this Chapter

Overview

Hard at work: Business reforms support investment in budding and mature activities alike
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Since the 1970s Bahrain has made a concerted effort to diversify its economy, with efforts visible in the vibrant manufacturing segment and from the growth of the kingdom’s heavy industries. Despite the drop in state revenues due to lower global oil prices in recent years, Bahrain continues to invest in its industrial sector, notably with the $3bn expansion of Aluminium Bahrain (Alba), which will see production grow to 1.5m tonnes per year – a rise of over 500,000 tonnes. Meanwhile,…

Interview

Holding its own: Zayed bin Rashid Alzayani, Minister of Industry, Commerce and Tourism, on focus points and areas for improvement
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Interview:Zayed bin Rashid Alzayani Which industrial sectors do you envisage leading the growth of the local economy in the near term? ZAYED BIN RASHID ALZAYANI: Financial services, tourism, ICT, food, pharmaceuticals, logistics, manufacturing, and, with the expansion of Aluminium Bahrain, downstream aluminium. There is also an ongoing debate on whether logistics is an industry or a trade, but we believe it is an industry and an area that is growing in Bahrain. We are giving more attention…

Interview

Expanding production: Tim Murray, CEO, Aluminium Bahrain (Alba), on opportunities in international markets and aluminium recycling
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Interview:Tim Murray What patterns do you expect to see in global aluminium demand in the medium term? TIM MURRAY: Current trends suggest that there will be a global market surplus of aluminium until 2020, though the peak surplus will be reached in 2018 before moving towards greater balance by 2022. Of course this assumes that Chinese production adjusts downward over the next couple of years. China currently accounts for approximately 60% of global aluminium output, but this is expected to…

Analysis

Business as usual: Petrochemicals are not left behind in the diversification drive
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Several major expansion projects are currently under way in the hydrocarbons sector, pointing both to the significant role the industry still plays in the economy and to the positive efforts being taken to leverage the use of the kingdom’s natural resources. Although Bahrain has achieved a higher degree of economic diversification than many of its Gulf neighbours, it still relies heavily on hydrocarbons. Petroleum-based products comprised 77% of the kingdom’s exports in 2014. However,…

Analysis

Plots with perks: Specialised industrial zones with unique benefits separate Bahrain from the competition
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In August 2017 Bahrain’s Industrial Areas Development Directorate, which is part of the Ministry of Industry, Commerce and Tourism, moved forward with efforts to update the infrastructure of Salman Industrial City. Previously known as Al Hidd Industrial Area, the city includes Bahrain International Investment Park (BIIP), Bahrain Investment Wharf and Hidd Industrial Zone. The updates, being supported by GCC funds, include road network development, street lighting, capacity upgrades to…