Bahrain’s industrial sector is currently experiencing significant growth, with the number of factories increasing by 38 in just one year, bringing the total number of factories in the Kingdom to 857. The Ministry of Industry and Commerce has reported a surge 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. To meet the growing demand, the government is actively developing more industrial zones.
The ministry has adopted a standardized model for industrial plot lease agreements, ensuring transparency and consistency in rental fees. Rental rates vary depending 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 annual revenue from industrial zone rentals has reached BD 14.5 million, highlighting the importance of the industrial sector to the Bahraini economy.
Under the Industry Sector Strategy (2022-2026), the ministry has outlined several infrastructure development projects. These include upgrading infrastructure in the Bahrain International Investment Park and the American Trade Zone, with an estimated cost of BD 4.5 million, set to be completed by September 2024. Another project involves developing sewage facilities in Salman Industrial City at a cost of BD 10.2 million, expected to be completed by December 2025. Additionally, infrastructure development in the South Hidd Industrial Area (Phase 2) is currently underway, with an estimated cost of BD 12 million.
In addition to these projects, the ministry is also working on upgrading and maintaining road networks in industrial zones, with an estimated cost of BD 2.5 million, expected to be completed by December 2024. There is also a project to design a sewage network for Al Mazra’a and Al Lahisi industrial zones, costing BD 230,000 and 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.
Overall, the industrial sector in Bahrain is witnessing significant growth and development, with investments pouring in and infrastructure projects underway to support the sector’s expansion. The government’s focus on improving infrastructure and creating additional industrial zones highlights the importance of the industry in boosting Bahrain’s economy and creating job opportunities for its citizens. With a strategic plan in place for the coming years, the industrial sector is poised for continued growth and success in the Kingdom of Bahrain.
