The Labour Fund (Tamkeen) is working with several key players to support the growth and development of the industrial sector in the Kingdom of Bahrain. The Government has launched the Industrial Sector Strategy (2022-2026), as part of Bahrain’s Economic Recovery Plan, which aims to boost the Kingdom’s economy and enhance its economic position.

Tamkeen’s Chief Executive Husain Mohamed Rajab stressed that the entity will continue to work with key partners to implement the Industrial Sector Strategy (2022-2026) in line with the Kingdom’s national priorities. The CE affirmed that Tamkeen is committed to support the growth of companies within the industrial and manufacturing sectors, through aiding in the acquisition of new technologies and expertise, promoting knowledge transfer and the creation of new jobs for citizens. He stated that Tamkeen’s support for manufacturing enterprises is underpinned by innovative solutions and programs to increase the contribution of this sector to the GDP, with the aim of promoting further diversification of sources of income and reducing dependence on oil.

Rajab highlighted that Tamkeen has supported several national initiatives within the industry in order to boost its development and growth, the most important of which is the establishment of Export Bahrain in 2018. Export Bahrain aims to enhance Bahrain’s position and transform it into a leading global export hub by raising awareness about export opportunities and encouraging the small and medium sector enterprises (SMEs) to expand their commercial activities out of the Kingdom. Additionally, Tamkeen provided specialised support programs offering export-related solutions and training to increase exports and the promotion of Bahraini products in regional and international markets.

Husain Mohamed Rajab

By the end of 2021, Export Bahrain supported over $130 million in exports by SMEs that were looking to expand into more than 57 markets around the world, an increase of 70 per cent compared to 2020. Moreover, Export Bahrain enabled more than 23 per cent of exporters to enter new markets and work on exporting their products and services from the Kingdom for the first time.

Alongside the establishment of Export Bahrain, the launch of the “Made in Bahrain” initiative was announced in cooperation with the Small and Medium Enterprises Development Council of the Ministry of Commerce, Industry and Tourism, encouraging production in Bahraini industries and distinguishing Bahraini products and services in the local market. This initiative works on increasing consumers’ confidence in local products, encouraging further purchases and highlighting and promoting these products and services globally, increasing their ability to compete globally.

In the past few years, Tamkeen provided support to more than 3,967 Industrial sector enterprises, through various support solutions such as financial grants for the purchase of machinery and equipment, marketing services and for obtaining quality certificates that conform to international standards. Tamkeen also facilitated financing solutions for enterprises in cooperation with several local banks. In addition, more than 6,000 Bahraini employees benefited from the Human Capital Development programs in this sector.

Tamkeen also works in cooperation with a number of key national partners, including the Bahrain Economic Development Board, to support international manufacturing companies that establish operations in Bahrain, with the objective of creating jobs for locals, encouraging knowledge transfer and improving the overall ecosystem. One such company is Mondelez, a leading light food manufacturer, which opened one of its factories in the Kingdom in 2018, to operate as a major export centre for the MENA region. Mondelez provides more than 200 jobs for locals, and Tamkeen has supported it through training and wage subsidies.

Spanish company ‘Aleastur’ selected Bahrain to set up GCC’s first plant for aluminium grain refiners

Tamkeen continues to provide support to all enterprises that are looking to develop, increase their productivity and expand their activities as part of its objective of making the private sector the engine for growth in the Kingdom. Most recently, Tamkeen launched 15 new programs that encourage enterprises to grow and expand operations both within Bahrain, and through export opportunities. Some examples of programs that enterprises can apply to in order to grow their businesses include the “Business Growth” program, which aims to help businesses realise their highest potential and achieve sustainable growth, both inside and outside Bahrain, by providing financial support that enhances their performance through a dynamic approach that focuses on growth and access to new markets.

Through Tamkeen’s human capital development programs, employees within enterprises and individuals are able to benefit from a wide range of training opportunities that develop the skillset of the national workforce to make it competitive locally and internationally. These programs prepare Bahraini talents and provide them with the required skills to find quality jobs. Tamkeen has also introduced programs to grow employees within their companies in order to further their career progression, ensuring that Bahrainis within the private sector are leaders in their fields, driving sustainable growth and impact.

Mohammed Al-Aali, the CEO of Wires International, which is regarded as one of the leading Bahraini manufacturing companies, highlighted the numerous investment opportunities in the sector, especially in light of the Fourth Industrial Revolution, which is a key objective of the launched industrial strategy. Al-Ali said: “This revolution accelerated the adoption of technology and digital transformation in the industrial sector, which increased the quality of manufacturing output, injected the market with more production opportunities and opened the door for more employment to cater to the demand for reaching local and global markets. Over the past years, Wires International was able to cover nearly 50 per cent of the American market needs, and it has become one of the world’s ten largest producers of aluminum nets.”

The industrial sector has long been an important contributor to the Kingdom’s economy.  Makki Al Noah, Projects Manager at BFG Company, a world leader in composite design, engineering and manufacturing, said: “Historical evidence indicates that manufacturing is the main driver of economic development, as it contributes to increasing local production, which in turn contributes to boosting exports, leading to direct impact on the national economy.”

The onset of the global pandemic highlighted the importance of the industrial sector and the vital role it plays in creating new investment opportunities. Many global manufacturing companies adopted a flexible approach to adapt to the unforeseen conditions that greatly affected supply chains. These companies have taken the initiative to diversify their manufacturing centres by establishing other branches in many regions around the world.

Spanish company ‘Aleastur’ announced the inauguration of the first factory for refining aluminum granules and producing main alloys in the Kingdom of Bahrain. By expanding into the region through Bahrain, they ensured their readiness to handle sudden shortages while also strengthening their regional supply chains.