Baytik Industrial Oasis (BIO), a wholly owned subsidiary of Kuwait Finance House-Bahrain, is on track to sign its first deals of 2011.

“Discussions have gone on with a number of local and international companies. In the next few months we expect to clinch deals with three or four,” said Nader K Al Moayyed, the CEO of Baytik Industrial Investments, the industrial arm of KFH-Bahrain.

Al Moayyed had said earlier that BIO was in talks with numerous Fortune 500 companies who undertake knowledge-based activities, high-technology manufacturing, assembling and processing.

BIO is in discussions with 30 European, US, Indian and local companies, hoping to attract substantial foreign direct investment (FDI), facilitate transfer of technology and bring employment to Bahrainis.

One of the attractive features for investors who might be interested in dealing with the US market is the Free Trade Agreement signed between Bahrain and the US.

A slate of other advantages is available for investors at BIO including ready-made state-of-the-art industrial facilities and infrastructure, zero tax, exemption from import duties on raw materials and equipment, duty-free access to GCC markets and 100 per cent foreign ownership.

These and other issues favourable to investors have been highlighted in road shows organised by the Ministry of Commerce and Industry and the Economic Development Board (EDB) last year. With infrastructure facilities now completed in Phase 1, there will be another phase of active marketing abroad, again under the auspices of the ministry and the EDB, where potential investors will be apprised of the many positive aspects of doing business at the BIO and generally in Bahrain.

Al Moayyed: project vital for Bahrain

“Marketing takes time, especially when dealing with international companies. The message going out is that Bahrain is the right place with the right facilities,” said Al Moayyed.

“Now with the facilities installed, they’re more likely to sign up,” he added.

Well-positioned real estate
In its latest marketing activity, BIO had a stall at Gulf Industry Fair where it showcased the 120,000 sq m of well-positioned real estate it has made available to investors in the first phase. The scheme comprises six pre-built manufacturing units for lease, each consisting of four modules of equal sizes. Providing flexibility in options, a company can invest in single or multiple units from 1,000 to 9,600 sq m. When the second phase is built, BIO would cover a total area of 162,400 sq m.

Phase 1 facilities including utilities and industrial infrastructure have all been completed. In February, BIO gave finishing touches to landscaping and declared it was fully ready to welcome on a turnkey basis anyone signing up for a slot in the oasis. The preparations are so comprehensive that tenants can step in and get their operations going within days of notification.

BIO operates at the ambitious and professionally managed Bahrain International Investment Park (BIIP) which is already playing a stellar role in bringing foreign direct investment, having enrolled a number of high-profile tenants from the region and overseas.

Among the companies in operation are US producer Kraft and Saudi Arabia’s SA Abahsain Group which have set up cheese and glass fibre plants respectively.

Big boost from Siemens
BIO hopes that US companies will follow in the footsteps of Kraft. The BIO got a big boost when Siemens announced it would set up a 25,000 sq ft metallurgical service centre for the Middle East’s steel and aluminium industries. “With Siemens on board we have an excellent value addition to the project,” commented Al Moayyed. Siemens has started installing all its equipment and should be ready shortly for beginning commercial operations.

A pre-built warehouse for the use of tenants

Al Moayyed acknowledges that Phase 1 itself “has a long way to go” but is encouraged that there already is a lot of interest in that phase and it could yield deals sooner than later. “All of them are developing industries and service-oriented and some are small manufacturers and those doing assembly work. Assembling is one of our target sectors,” he pointed out.

One of the best things going for BIO is the location. Industries operating at BIO will enjoy proximity to the airport, the seaport and the road link to Saudi Arabia, the Middle East’s largest economy. As well as the high-quality of industrial facilities on offer, there is no doubt that location will help tilt the balance in favour of BIO among those making up their minds.

BIO sits adjacent to the new Khalifa Bin Salman Port, managed by APM Terminals and where cargo handling efficiency is said to be the Gulf’s highest.

As a means to diversifying the country’s economic base and bringing in badly needed FDI and jobs, the role of industrial real estate can hardly be exaggerated.  Baytik Industrial Investments has already invested $50 million at BIO and believes it can generate $200 million in FDI and create 2,000 jobs, which is good news for the Bahrain Government as it pursues greater industralisation.

Referring to BIO, Al Moayyed says: “It is an important project not just for us but also for Bahrain because it aims to attract investment into the country. We’re in this as a joint venture with the Ministry of Commerce and Industry and the Economic Development Board.”