Bahrain’s industrial sector is experiencing rapid growth, with the number of factories increasing by 38 in the past year, bringing the total to 857. This surge in industrial activity has propelled investment levels in Bahrain’s industrial zones to over BD3.7 billion. The zones, covering 14.5 million square meters, are now 90% occupied, prompting the Ministry of Industry and Commerce to introduce a new leasing model to support this growth.
Under the new leasing model, lease contracts are structured based on an approved template, with rental rates varying by activity. Industrial operations are offered leases for 25 years at a rate of BD1 per square meter annually, while logistical activities are given lease periods of 15 years at BD4 per square meter per year. This initiative aims to attract more industries to Bahrain and enhance the country’s industrial capacity to establish itself as a key player in the global industrial landscape.
The Ministry of Industry and Commerce has outlined several development projects in a memorandum to the legislative authority as part of the industrial sector strategy for 2022-2026. These projects include the construction of the Bahrain International Investment Park and the US Trade Zone, with an initial investment of BD4.5 million set to be completed by September 2024. Additionally, advanced sanitation facilities are being developed in Salman Industrial City at an initial cost of BD10.2 million, scheduled for completion by December 2025.
In order to support the growing industrial sector, infrastructure projects such as upgrading road networks in industrial areas with an initial budget of BD2.5 million are also underway and expected to be completed by December 2024. Plans are in place for the development of a sewage network in Al-Mazara’a and Al Lahsi industrial areas, with an initial cost of BD230,000 and a target completion date of December 2024. Furthermore, a main power station is currently under construction in the east of Salman Industrial City at an initial cost of BD9.75 million, with the completion date still pending review.
The impressive growth of Bahrain’s industrial sector and the significant investment in infrastructure projects indicate the country’s ambition to not only participate in the global industrial landscape but also establish itself as a major player. With the implementation of the new leasing model and ongoing development projects, Bahrain is well-positioned to attract more industries and further boost its industrial capacity, contributing to economic growth and prosperity in the region. As Bahrain continues on this trajectory of industrial development, it is likely to emerge as a key hub for industrial activities in the Middle East and beyond.
