Bahrain launches Industrial Sector Strategy for 2022-2026
TDT | Manama
The Daily Tribune – www.newsofbahrain.com
As part of the Government of Bahrain’s ambitious Economic Recovery Plan, the Industrial Sector Strategy (2022-2026) was revealed today at a press conference at the Isa Cultural Centre.
Speaking at the conference, the Minister of Industry, Commerce and Tourism, HE Zayed bin Rashid Alzayani, affirmed that the Strategy is a major pillar in the Economic Recovery Plan and will contribute towards achieving economic growth.
He explained that the Economic Recovery Plan mandates the development of the production and services sectors in the Kingdom, of which the Industrial sector is an essential component.
This, the Minister affirmed, comes as part of various initiatives put forth to achieve economic development, as part of the visions of HM King Hamad bin Isa Al Khalifa.
HE Alzayani added that the Industrial sector continues to receive support from the Government, headed by HRH Prince Salman bin Hamad Al Khalifa, the Crown Prince and Prime Minister, as part of the overall Bahrain Economic Vision 2030.
The Minister of Industry, Commerce and Tourism listed the main objectives of the Industrial Strategy (2022-2026). He noted the strategic goals focus on increasing the sector’s contribution to the overall GDP, increasing national origin exports, as well as creating additional job opportunities, supported by adapting the “Fourth Industrial Revolution”, implementing “Circular Carbon Economy”, encouraging investments in digitalisation, and improving regional supply chains.
The Minster added that the targeted industries as part of the strategy, include the downstream industries in aluminium and petrochemicals, as well as renewable energy sectors including “blue and green hydrogen”, which will contribute towards the Kingdom’s commitment to reach net zero carbon emissions by 2060. The Minister affirmed that the strategy will also focus on food, pharmaceuticals, and micro-electronics.
HE Alzayani stressed that the Industrial Sector Strategy is based on five main pillars, which include promoting local industries, investing in infrastructure, improving investors’ experience, providing career guidance for Bahrainis, and updating legislations.
With regards to promoting local industries, the Minister highlighted several initiatives within the strategy, ranging from launching programs to encourage large factories to purchase products and services from local small and medium factories, providing industrial incubation and acceleration opportunities for SMEs, improving regional import and export supply chains through Export Bahrain solutions, developing the “Made in Bahrain” trademark, and launching the Industrial Excellence Award to encourage competition amongst the factories.
The Minister went on to add that investing in infrastructure is key and will be achieved through dedicating areas to promising industries, improving amenities and services to industrial areas, intensifying inspections on industrial districts, encouraging the use of renewable energy, and setting up an “Industrial Innovation Centre” to promote the adoption of Fourth Industrial Revolution technologies.
As for the third pillar of the strategy, the Minister highlighted that the government is working on facilitating procedures to improve investors’ experience.
He explained that the government is re-evaluating current procedures and will launch a unified electronic system as the main platform serving investors in the field, along with easing procedures regarding acquiring licenses and providing services through relationship management, to customized solutions for various encountered issues.
HE Alzayani explained that the fourth pillar involves directing nationals professionally through the provision of various educational and vocational training opportunities in the field.
As well as, he said, launching programs that will encourage hiring nationals in the sector, and encouraging factories to setup internship programs for technical and vocational education graduates.
The Minister affirmed that the revision in legislation will be through the implementation of joint GCC guidelines. This includes amending local laws to incorporate precision industries, as well as setting up specific urban planning classifications dedicated to industrial areas.
HE Alzayani outlined that three main performance indicators have been set to evaluate the implementation of the strategy.
He explained that they include, the percentage of employed Bahrainis in the sector with a set goal of increasing the percentage to 25.3% and increasing overall employment to 65,291 individuals by 2026.
The second indicator, the minister added, is the industrial sector’s contribution to the GDP, with the aim of arriving at 2.544 billion BHD by 2026, at a 14.5% contribution.
As for the third indicator, the Minister, noted that the contribution of the industrial sector to the overall exports will be measured. The strategy aims to arrive at increasing the percentage of contribution to overall exports to 80.1%, amounting to 2.475 billion BHD by 2026.
The Minister of Industry, Commerce, and Tourism also highlighted several investment projects which will be implemented with the launch of the Industrial Sector Strategy at a total cost of more than 90 million BHD. These include establishing the United States Trade Zone (USTZ) by June 2025, with an area of 1.1 million m2 at a cost of 75 million BHD.
As well as building the Fasht Aladham industrial zone, with a total area of 104 million m2, and the Aluminum transformative industry plot with an area of 477,000 m2.
The Minister also listed several infrastructure development projects, amounting to approximately 35 million BHD. These include developing the infrastructure of East Salman Industrial City, at a projected cost of 12 million BHD, with an expected completion date in March 2024. Together with the development of sanitation facilities in Salman Industrial City, at a projected cost of 10.2 million BHD, and an expected completion date in December 2023.
The third project, the minister added, includes, Infrastructure development in South Hidd Industrial Area, with an initial cost of 12 million BHD, and is expected to be completed in June 2024.
The Minister also highlighted plans to invest in the development and maintenance of road networks in industrial areas. The projected costs amount to 2.5 million dinars, and the project is expected to be completed in December 2025.
For his part, the Chief Executive of Tamkeen, Mr. Hussain Mohammed Rajab, stressed Tamkeen’s commitment to providing support to individuals and facilities in the Kingdom, as stipulated by its strategic objectives. The CE affirmed that the Labour Fund will continue to support promising industries by providing training opportunities to enable Bahrainis according to market needs.
He highlighted that Tamkeen has overseen several training programs, including a recent program administered in coordination with the global Fives Group and Bahrain Polytechnic University.
Rajab highlighted Tamkeen’s role in realizing the strategic objectives of the Industrial Strategy 2022-2026. He explained that Tamkeen will focus on supporting efforts towards adopting the “Fourth Industrial Revolution”, through the provision of training opportunities in various fields, including Artificial Intelligence and transformative production.
He added that Tamkeen will also support local production industries by financially backing institutions in the payment of wages for Bahraini workers. This, on top of providing incubators for SMEs to encourage innovation.
As for providing professional guidance for local workforce, the CE noted, Tamkeen will be organizing various training programs in cooperation with educational institutions. This will include professional global certifications and internship opportunities.
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