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Bahrain plans free zones to draw manufacturers

By Gavin Gibbon
Fishing huts and boats in Muharraq. New free zones in the governorate could help to diversify Bahrain's economy Alamy via Reuters
Fishing huts and boats in Muharraq. New free zones in the governorate could help to diversify Bahrain's economy
  • Free zone planned for Muharraq
  • Part of economic diversification
  • Manufacturing 13.6% of GDP

Bahrain is to set up new industrial free zones within the kingdom with a view to attracting key players in the foodstuffs, pharmaceuticals and garments industries and generating thousands of new jobs.

The plans are for the Muharraq governorate, situated in the north east of the Gulf island, which is also home to Bahrain International Airport. They were unanimously backed by the Muharraq Municipal Council.

“These zones could cater to sectors critical to Bahrain’s economic diversification plans,” said Abdulaziz Al Naar, council chairman.

The International Monetary Fund estimates that Bahrain requires oil prices of $135.7 per barrel to achieve budgetary equilibrium – prices on Monday were at $74.91 a barrel shortly after 9.30am GMT. Non-oil activity makes up 85 percent of the country’s gross domestic product.

The new industrial free zones will have a particular focus on cementing Bahrain’s position as a manufacturing centre for foodstuffs, pharmaceuticals and fashion.

In 2023 the manufacturing industry contributed 13.6 percent to the kingdom’s GDP, which reached BD13.66 billion ($36.25 billion).

Under Bahrain’s industrial strategy for 2022 to 2026, it is aiming to increase the contribution of the industrial sector to 14.5 percent, with its contribution to overall exports of domestically produced goods to hit 80 percent or BD2.5 billion by 2026.

Around 6,000 new jobs will be created over the four-year period as part of the strategy.

“Our goal is to make Muharraq the go-to destination for quality investments that reflect Bahrain’s growing reputation as a sophisticated and progressive hub for business,” said Al Naar.

Bahrain has seven industrial zones – Salman Industrial City, and the Mina Salman, Ma’aneer, Sitra, Al Mazara, Al Lhaasay and Haffera industrial parks – which attract significant local and international investment.

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