The oldest sector in Bahrain's modern economy, oil and gas, has contributed significantly to the rise of numerous downstream industries. Following the discovery of oil in 1932, the Bahrain Petroleum Company (BAPCO) was established to extract and refine crude oil. In 1979, the Bahrain National Gas Company (Banagas) was process natural gas into marketable products, mainly propane, butane and naphtha, and to meet local industrial demand.
The same year, Gulf Petrochemicals Industries Corporation (GPIC) was established to produce ammonia and methanol. Two plants produce 1,000 metric tons daily of those important products. And, since 1998, a third plant is under construction to produce 1,700 metric tons of urea every day. Urea is a major component of the fertilizer market, an area of increased demand due to population growth and global modernization of agriculture.
As part of an overall initiative to encourage small and medium enterprises (SMEs), Bahrain will seek to improve and expand industrial SMEs in the aluminum and chemical industries. The petrochemical industry has, fostered light industries including chemicals, detergents, paints, medical and industrial gases, plastics, synthetic sponges, fiberglass, heat insulators and heat insulation slabs.
Natural gas also serves as a cost-efficient energy source for Bahrain’s significant aluminum industry, including primary production, semi-fabricated products, downstream processing and associated industries (such as bulk transportation, shipbuilding and repair and recycling). Aluminum Bahrain (ALBA), the Gulf's first aluminum smelter, is today one of the world's largest and most efficient smelters, capable of delivering melted aluminum directly to nearby plants. ALBA produces 500,000 tons annually with products exported to more than 30 countries. Opportunities exist parts manufacturing for the transportation industry (car parts, engine parts, airplane parts, etc.). And, aluminum recycling presents a significant area of growth, too.
Foreign investors in industrial projects, industrial support service centers, and maintenance of sophisticated industrial instruments are able to own 100% of their companies.
