Why should investment continue despite the current economic climate?
ABDULRAHMAN JAWAHERY: The decision to build a liquefied natural gas (LNG) terminal in Bahrain is the best thing to happen to its energy strategy since the discovery of oil decades ago, and is a perfect example of why investment should continue or accelerate even at a time of low prices. The new LNG terminal is a requirement to fuel sustainable development that would be practically impossible given Bahrain’s resources. Currently the country has at best 10-30 years of gas reserves, and this development will enable downstream industrial development that would not have been possible given domestic energy needs. In order to add value for shareholders and to remain competitive and sustainable in this evolving and challenging global market, companies need to grow. In line with this outlook, we will be embarking on a major expansion project to build a multi-billion dollar ammonia and granular urea plant adjacent to our existing facilities. Furthermore, Bahrain has proven to be a safe investment destination for investors from across the GCC, returning a steady investment for years rather than volatile shifts or unsustainable growth.
How would you rate Bahrain in the sustainability of its industrial operations?
JAWAHERY: Sustainability as a concept is still in its infancy in the GCC region. However, organisations have started to recognise that to remain competitive they have to embed sustainability in their strategies and business plans. This is not just about financial performance gaining from sustainability through increasing employee loyalty, consumer reputation or demonstrating competitiveness and lower risk to potential sources of equity, but also about creating the space for innovation. Sustainability issues are not going away, and they will continue to intensify over the next 10 years. This is not an individual crisis, but a collective one, which means that these challenges can be addressed through collaborating and by fostering a culture of transparency and accountability, which can be done through institutional reporting mechanisms. Focusing on sustainability ensures that new plans are forward-thinking and on the cutting edge of potential changes in process and business. In short, engaging in sustainability initiatives can simultaneously increase success and add the value to society at the local level and at the international level. Bahrain committed to reducing its CO2 emissions at the 2015 UN Conference on Climate Change in Paris. Working with the Supreme Council for Environment to develop a biodiversity online database and strategy for the kingdom will ensure this stays a priority in the future.
How does Bahrain’s fertiliser production fit into the global marketplace?
JAWAHERY: Having been fully affiliated with the International Fertiliser Association since 1985 and a full board member since 2005, GPIC has also helped shape the direction of the Arab Fertiliser Association (AFA), holding the chairmanship since 2015. The AFA has a membership of more than 166 companies from 30 countries, and aims to assist members with production issues through the exchange of information and experiences. The fertiliser market was the eighth largest among chemical markets in 2015, with Asia ranking as the largest contributor to demand because of the presence of large farming communities in China and India that are now using fertilisers.
Per capita consumption is also increasing because of a growing demand for water soluble fertilisers in many parts of the world. Global fertiliser turnover is between $200-300bn per year, with Bahrain exporting around $195m per year. Assuming no major changes to agriculture market fundamentals, global fertiliser demand is set to expand around 1.9% in 2017, which equates to an estimated 186.6m tonnes, compared to Bahrain’s total production of around 1.46m tonnes.
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