Bahraini manufacturers secure 75% of GCC market with strategic deals

TDT | Manama

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Preferential treatment deals with Saudi Arabia and UAE in government procurements have ensured Bahraini manufacturers access to 75% of the GCC market, said Industry and Commerce Minister Abdulla Fakhro.

Speaking in Parliament, Fakhro outlined the ministry’s evaluation of 200 factories as part of its digital transformation initiative, supported by 20 internationally certified Bahraini assessors through Tamkeen. A key component of this strategy is the ‘Takamul’ programme, launched in August 2023, which redirects industrial sector spending towards the local market.

The Minister explained that the reciprocity agreements with Saudi Arabia and the UAE, reached in February and November of the previous year, grant Bahraini manufacturers the same advantages once reserved for domestic producers in these countries. He also highlighted a new incentive for businesses that employ more Bahrainis, invest in their training, and offer competitive wages. These businesses can qualify for a value-added certificate from the ministry, which provides a 10% advantage in future government tenders. Additionally, Fakhro revealed that a study on manufacturing gaps has been completed to help localise industries and reduce dependency on imports. The findings were shared with the Bahrain Chamber of Commerce and Industry (BCCI), paving the way for new opportunities for existing factories and international investors.

The minister encouraged the private sector to capitalise on these opportunities, noting that several initiatives, including smart factories incorporating Fourth Industrial Revolution technologies, are already in progress.

MP Ahmed Al Salloom praised the achievements, recognising them as the result of collaborative efforts by various government entities, particularly the Ministry of Industry and Commerce. He also advocated for a regular review of incentives for industrial companies, especially start-ups, small businesses, and large foreign firms contributing to Bahrain’s economy.