Bahrain's Industrial Sector Booms: Number of Factories Rises by 38 in a Year

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

Bahrain's industrial sector is experiencing a surge in growth, with the number of factories increasing by 38 in just one year, according to new data released by the Ministry of Industry and Commerce. The total number of factories in the Kingdom now stands at 857.

In a memorandum to the Council of Representatives, the ministry also reported a significant increase in registered investments in industrial zones, exceeding BD 3.7 billion.

The total area of industrial zones in Bahrain is 14.5 million square meters, with over 90% currently occupied. The government is actively pursuing the development of additional industrial zones to meet growing demand.

The annual revenue from industrial zone rentals has reached BD 14.5 million. The ministry has adopted a standardised model for industrial plot lease agreements, ensuring transparency and consistency in rental fees.

Rental rates vary based on the type of industrial activity, with a 25-year lease term for manufacturing activities at BD 1 per square meter per year, and a 15-year lease term for logistics activities at BD 4 per square meter per year.

The ministry's memorandum to the legislative authority highlights several infrastructure development projects planned under the Industry Sector Strategy (2022-2026).

These include upgrading Infrastructure in Bahrain International Investment Park and the American Trade Zone, a project with an estimated cost of BD 4.5 million, expected to be completed by September 2024.

Another project is developing sewage facilities in Salman Industrial City, with an estimated cost of BD 10.2 million, expected to be completed by December 2025.

The memorandum also mentions developing infrastructure in South Hidd Industrial Area (Phase 2), a project with an estimated cost of BD 12 million, which is currently underway.

In addition to these projects, the ministry's memorandum outlines several other ongoing infrastructure initiatives.

One is upgrading and maintaining road networks in industrial zones, with an estimated cost of BD 2.5 million, expected to be completed by December 2024.

Another project is designing a sewage network for Al Mazra'a and Al Lahisi industrial zones, with an estimated cost of BD 230,000, expected to be finished by December 2024.

Lastly, the ministry is constructing a main power station in East Salman Industrial City, with an estimated cost of BD 9.75 million, although the completion date for this project is still under review.