Bahrain Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in bahrain, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Overview

Seeking to further diversify its economy, the Bahraini government has worked to identify alternatives beyond the oil and gas sector to generate revenue. The development of Bahrain’s petrochemical and aluminum industries remain a priority. The Bahraini government established the Gulf Petrochemical Industries Company (GPIC) in 1980 to produce ammonia and methanol. By 1988, GPIC produced 1,700 tons of petrochemicals daily, which led to the creation of new downstream industries in Bahrain. Within the petrochemical sector, five sub-sectors have grown quickly in recent years: construction chemicals, water treatment chemicals, polymer and plastic additives, paints and coating additives, and oil field chemicals. Bahrain also has a well-developed aluminum industry led by Bahrain’s national smelter, Alba, and downstream aluminum manufacturing also occupies a significant share of the secondary sector of the economy.

Leading Sub-sectors

Leading industries in Bahrain include aluminum, iron, petrochemicals, plastics, glass, food and pharmaceuticals, shipbuilding and repair, and iron pellets. Bapco Refining, subsidiary of state-owned Bapco Energies, refines 267,000 barrels per day of crude oil to produce gasoline, kerosene, jet fuel, low-sulfur diesel, heavy distillates, fuel oil, asphalt, liquefied petroleum gas, propane, and butane. GPIC converts natural gas to ammonia chemical fertilizers and methanol with a production capacity of about 1.5 million tons per year. Aluminum Bahrain (Alba) produces liquid aluminum (molten), as well as rolling and drawing molds and standard alloys for local industries and alloy wheels, with a production capacity of more than 1.6 million metric tons per annum, approximately one-quarter of which is allocated to local customers in the form of liquid metal, rolling molds, and drag rods.

Opportunities

There are several investment opportunities in the downstream aluminum value chain for U.S. industry, including opportunities to manufacture and supply components for the GCC railway network. To optimize the utilization of smelter products in Bahrain, several manufacturing plants have been established based on Alba products as a major source of raw materials. The establishment of Alba led to new small- and medium-sized factories utilizing aluminum for the production of doors, windows, kitchens, and other products. Main local manufacturers include Midal Cables Co., manufacturer of aluminum cables and electrical connectors; Gulf Aluminum Rolling Company (GARMCO), producer of rolled products, rolled metal sheets, and aluminum circuits; Bahrain Aluminum Extrusions Company (BALEXCO), which produces aluminum profiles, metal coating, smelting and fabrication; and Bahrain International Metal Spray Company, producer of powder and aluminum pellets used in the manufacture of dyes and spare parts. In December 2024, the Ministry of Industry and Commerce (MOIC) announced the launch of the Aluminum Downstream Industries Zone which is scheduled for completion by the end of 2027. The zone is located near Alba and presents opportunities for aluminum-related industries to expand their presence in Bahrain.

Opportunities for U.S. firms exist in the manufacturing of basic chemicals, fertilizers, nitrogen compounds, plastics and synthetic rubber in primary forms, as well as in the manufacturing of pesticides, cosmetics, and synthetic fibers.

The Bahraini market also presents opportunities for manufacturing in the following subsectors: construction chemicals; water treatment chemicals; polymer and plastic additives; paints and coating additives; and oilfield chemicals.

Resources

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