Bahrain, fine-tuning its industrial infrastructure to make the kingdom more attractive for entrepreneurs, expects in a year of two to change the industrial landscape significantly with more factories, more logistics firms and more employment for the local people.

The new Hidd port will be ready by the end of 2008; the Bahrain Investment Wharf was launched in November, the Bahrain International Investment Park (BIIP) has made progress towards gaining tenants, and a $1 billion science and technology park is to be created.  Implemented by Kuwait Finance House (KFH) in association with the Economic Development Board (EDB), the park is expected to bring diversity to Bahrain’s economy.
Bahrain’s Commerce and Industry Minister Dr Hassan Fakhro has been marketing Bahrain to businessmen all over the Gulf. Recently he opened an “Invest in Bahrain” promotional campaign in Abu Dhabi and impressed on the gathering the need for regular meetings between representatives of the private sector in Bahrain and the UAE.
He has also been telling Bahraini businessmen not to miss out on the opportunities arising from the ratification of the Bahrain-US Free Trade Agreement.
"A lot will depend on the readiness of our private sector to meet the challenges of penetrating the vast, sophisticated US markets," said Dr Fakhro.
"We must be up to their expectations, improving quality standards and also the overall aspects of doing business with a high degree of efficiency and corporate governance.”
The FTA is not a one-way traffic, and the Bahraini government expects US businessmen to look more closely at investment opportunities in the kingdom. The technology and managerial expertise of US firms could galvanise the industrial scene here, if US companies decided to come in for the haul, observers say.
That seems to be happening albeit gradually. New York-based Westpoint House has purchased from Manama Textile Mills three plants producing bedsheets, leaving the local textile firm to concentrate on its denim line.   Westpoint is capitalising on the FTA, which allows companies to export to the US without paying tariffs.
Kraft is building a cheese and tang powder plant at the BIIP.
To help Bahraini companies find their way into the US, an agreement was signed between the FTA Implementation Committee and the National US-Arab Chamber of Commerce (NUSACC). It will facilitate networking between both countries’ business communities, enabling private sector firms to locate suitable partners for joint ventures and other business arrangements, exchange news, organise seminars and workshops and cooperate on providing services for specific projects.
Two of the big guns of Bahraini industry are examining ways of producing more and earning more. Alba, which in 2005, had installed its fifth potline, wants to implement another expansion by going in for Potline 6. It had made clear its intentions several years ago, but the hitch seems to lie on not being able to finalise an agreement for dedicated gas supplies.
Alba had over the past several years discussed the importance of   taking stakes in alumina companies or smelters, both for assurance of dedicated supplies of the raw material and gaining strength in the market from higher combined production figures.  It had also acknowledged it was in negotiations.
Garmco is more adept at creating subsidiaries. Abroad, it created several service centres that import Garmco products and add value or trade in metals that may not necessarily be aluminium. It has subsidiaries in the US and is now said to be close to taking a stake in a Gulf smelter.