At a glance
- Bahrain is targeting a sustainable and innovative industrial base as part of its five-year industrial strategy
- The minister of industry and commerce launched a ‘Green Factory Seal’ at COP28
- In January, Manama hosted the higher committee of the Industrial Partnership for Sustainable Economic Development
Abdulla bin Adel Fakhro, Bahrain’s minister of industry and commerce, is on a mission to transform the country’s industrial sector under a broader government plan to revamp the economy and hasten the transition to a non-oil future.
Guided by an industrial sector strategy for the 2022–2026 period, the ministry is targeting a “sustainable” and “innovative” industrial base by accelerating digitalisation and the shift to “Industry 4.0”: adopting a circular carbon economy; investing in infrastructure and supply chain efficiency; and promoting environmental, social and governance principles across the country.
“The industrial sector strategy has a bold ambition to ensure dynamic growth and prepare the industrial sector to compete regionally and internationally. We have set ambitious targets to achieve the key objectives of our strategy by 2026,” Fakhro explains.
On the sustainability front, the ministry launched a “Green Factory Seal” at COP28 in November. As part of plans to achieve carbon neutrality by 2060, the seal is given to factories meeting the national action plan’s stringent environmental criteria.
The aim is to “encourage the adoption of sustainable practices among factories”, Fakhro says.
“By promoting sustainable manufacturing, the ‘Green Factory Seal’ supports Bahrain’s efforts to achieve sustainability across various levels, contributing to its ambitious carbon neutrality goal,” he adds.
The green standards Bahraini factories must meet include, among other things, at least 10 per cent waste reuse in production processes; using renewable energy to power 10 per cent of a facility’s operations; and using emissions monitoring systems, including greenhouse gas management.
Beyond this environmental focus, the Ministry of Industry and Commerce is also reaping the benefits of Bahrain’s membership in the growing Industrial Partnership for Sustainable Economic Development, which it joined in 2022.
The regional club aims to boost cross-border industrial ties and sustainable growth, and includes Egypt, the UAE, Jordan and, most recently, Morocco.
Fakhro says the partnership “fosters stronger regional co-operation, facilitating closer economic and trade ties between member countries”, and provides a platform for greater private sector collaboration regarding investment, production and marketing across borders.
It also increases the security of Bahrain’s supply chains and industrial base in a more uncertain world.
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“In an era of global economic challenges, the partnership enables enhanced co-operation and supply chain resilience, ensuring reliable and sustainable operations,” he adds. “Ultimately, these combined efforts pave the way for increased value within national economies, achieved through supply agreements, greater local production, and reduced reliance on foreign imports.”
Morocco’s decision to join the partnership in January this year will deliver sizeable benefits for Bahrain, Fakhro believes.
“Integrating Morocco unlocks several compelling advantages,” he says. “Morocco’s prowess in areas like aerospace, automotives and textiles perfectly complements Bahrain’s established expertise in food processing, aluminium and downstream petrochemicals, fostering potential partnerships and the complementary coordination of industrial know-how.”
The minister also points to Morocco’s strategic location at the crossroads of Europe and Africa and says the country’s integration into the club “creates exciting opportunities for joint ventures, technology transfer and mutual investment between Bahraini and Moroccan companies, further solidifying the partnership and amplifying its economic impact”.
In January, the fourth meeting of the partnership’s “higher committee” convened in Bahrain and secured several major industrial agreements. This includes an accord by industrial giant Bahrain Steel to supply 2mn tonnes of iron ore per year to Emirates Steel for the next five years, in a $2bn deal.
Fakhro says the Jordanian Phosphate Mines Company will also supply 13,000 tonnes of fluoride annually to Aluminium Bahrain among other deals and agreements.
“By joining the industrial partnership, Bahrain can significantly advance its industrial sector,” Fakhro continues. “The partnership facilitates resource integration, market expansion and enhanced competitiveness, forging valuable new connections across member countries.”
Meanwhile, the Ministry of Industry and Commerce is also taking steps to boost the role of small and medium-sized enterprises in Bahrain’s economy.
“We recognise the crucial role these businesses have in driving economic diversification, creating jobs, and contributing to the nation’s overall prosperity,” Fakhro adds.
The ministry established the SME Development Board in 2017 to improve the policy environment for SMEs, ease their access to finance, and offering support services to the sector. Steps have also been taken to improve SMEs’ ability to compete for government procurement contracts.
“Our government procurement programme dedicates 20 per cent of its total value to SMEs. Additionally, we provide a 10 per cent advantage in public tenders and auctions to empower SMEs to compete effectively. An online platform for registration and classification simplifies the process for SMEs to access these opportunities,” he adds.
