Industry

While the Kingdom’s established heavy industries continue to play an important role in the economy, the government is seeking to diversify industrial activity into areas such as high-tech manufacturing and the downstream aluminium segment. After aluminium, petrochemicals is the largest industry in Bahrain, with ammonia, methanol and urea all produced locally. While steps are being taken to increase petrochemicals production in the Kingdom, one challenge that remains is ensuring the supply of natural gas at a price that allows Bahrain’s goods to remain competitive in the regional market. But Bahrain has a history of success in diversification, and shifting towards high-tech manufacturing and other new areas will help the industrial base develop further and reduce reliance on heavy industry. In the future, rather than using finite natural resources, these niches will rely on developing the skillsets of the national workforce and also making use of the Kingdom’s geographical position midway between developed markets in the US and Europe and the quickly expanding economies of Asia. This chapter includes an interview with Chris Potter, Chief Executive, Arab Shipbuilding & Repair Yard.