Bahrain International Investment Park (BIIP), a landmark development of the Ministry of Industry and Commerce, where 76 companies have either signed leases or gained approvals by mid-December 2008 for manufacturing and international services projects, says it expects to continue winning investment despite the global financial meltdown.

BIIP chief Bader Al Saad says the park will target Gulf manufacturers because “we think industries in the Gulf will be less impacted by the crisis than manufacturing companies in the US and Europe.”
“For the next several months our primary focus will be Gulf manufacturers.”
Al Saad indicates that in addition global producers will likely be interested in setting up operations in a region less affected by the crisis and says, “We’re in discussions with companies from Europe, Asia and the US.
“Despite the global downturn, we’re enjoying an enquiry level that’s still quite strong. New companies are coming to talk to us.”
Forty companies signed BIIP leases by mid-December while 36 others have gained approvals for land but are at the pre-lease stage. The investment figure for all of them – those who have signed up and those still to do so – totals BD280 million ($742.7 million).
Forty-eight of these are Bahraini firms, while the remainder is drawn from a broad spectrum of nationalities including the US, Saudi Arabia, Germany, Singapore, Switzerland, Canada, India, Lebanon, Italy, Kuwait, the UK and Australia.  The total number of jobs generated would be around 6,286 if all firms with approvals signed leases.
BIIP makes allowance for the possibility that not every project will materialise but feels that more than 90 per cent will eventually end up operating in the park.
Among the 40 that have signed leases, 32 are manufacturing firms and eight international service companies.
BIIP project director Brian Cogan noted that BIIP looked a lot more different in mid-December 2008 compared to a year ago with a number of structures having taken shape.
There are 20 companies on site including six already in operation. Those operating are Kraft Foods Bahrain, which invested $40 million for a cheese and Tang powder factory; Oriental Press, Halwachi Food Factory, Global Logistics Services, National Institute of Industrial Training  and Creative Design.
The production plants of Abahsain Fibreglass Middle East, plastics products manufacturer Ramez International and paper products manufacturer Maskati are close to completion.
Seventy per cent of land available for the use of investors has already been allocated.
“Based on the current trend we would assume that in two years all of it will be allocated,” Cogan says.
BIIP covers 247 hectares including roads and services areas or 1.5 million sq m solely for the use of investors.
Cogan says the park is on target in respect of signed leases and approvals.
BIIP offers three options to investors – land for manufacturing, land for setting up office operations and pre-built industrial and office space for rental.
Two important segments of BIIP are the Knowledge Zone and Kuwait Finance House - Baytik Industrial Oasis (BIO).
The Knowledge Zone invites investors to set up Middle East headquarters, back-office processes, office-based international services and customised service centres.
They will be trading not just in Bahrain but also regionally and beyond.
BIO, on the other hand, is offering pre-built factories totaling 53,500 sq m currently under construction and which will be ready for rental by mid-2009. Investors are invited to set up their manufacturing activities in 24 units ranging from 2,000 to 9,000 sq m. BIO is also building a multistorey building where space will be rented out for offices.
BIIP has launched a hectic marketing programme in which it has identified the GCC region’s top 700 manufacturing companies. It has begun contacting them and will in fact cover 200 of them by the end of the first month of the New Year, say Al Saad and Cogan.
The park is highlighting the advantages of proximity to the airport and to the new Shaikh Khalifa Bin Salman port and a low land charge of 500 fils per sq m per year on a 50-year lease.
BIIP also offers a 10-year guarantee of exemption from corporate tax; no income tax;  full ownership for overseas firms; duty-free access for exports to GCC markets; duty-free exemption of imports of machinery and raw materials from anywhere subject to approval.
Al Saad says the park will be well landscaped and have good security, with good availability of utilities already in place.
“We’re determined to manage the park to the highest international standards,” he comments. “This will be the best-quality business park in Bahrain, somewhere that local and international companies will be proud to call their home”
To “develop a presence,” BIIP commenced last May an advertising campaign targeting major decision-makers in the Middle East. It brought out full-page adverts in major regional publications and went on a billboards spree. BIIP has also updated its website www.biip.com.bh, brought out new promotional material, a new brochure and new information leaflets. It participated in the Gulf European Expo last November, has booked a stall at Gulf Industry Fair in Bahrain this month (January) and will be present at the Gulf Food exhibition in Dubai next month (February).
Cogan says aggressive marketing is paying off as evidenced by the progress made in land allocations.