Bahrain

With the industrial sector looking to post positive growth in 2013 on the back of increased regional demand, steps are being taken to boost the supply of space for manufacturing activities.

The Kingdom’s stock exchange is to see its first new listing for 2013, with a green light for telecommunications firm Zain Bahrain to launch an initial public offering (IPO). Analysts are likely to follow the float with keen interest as it could serve as an indicator of how far confidence has returned to the Kingdom’s capital markets.

The Kingdom is moving toward finalising plans to refurbish its only oil refinery, part of a wider programme that will see the Gulf’s first oil producer increase its focus on value-added downstream activities, rather than depending on its ever-decreasing reserves for revenue.

The regulator of Bahrain’s telecommunications sector recently announced plans to unlock additional radio spectrum to improve speed and availability, news that has been much welcomed by sector players. However, how the bands will be allocated and to whom has not been made clear.

The Kingdom strengthened its role as a hub for trans-shipment services in the Northern Gulf markets last year, buoyed by Saudi Arabia’s growing market. However, while the expansion of these services spells good news, rising demand has also produced challenges.

Having commenced 2013 with a number of new and noteworthy industrial projects in both private and public sectors, Bahrain should be able to continue to diversify its portfolio and expand its industrial base.