“Investors are more than ever encouraged by the opportunities that continue to unfold in the region, quite obviously viewing the negative press stories to be what they really are, more works of fiction than of fact,” Dr Hassan Abdulla Fakhro, Minister for Industry and Commerce, told the audience at the opening of the Olayan Kimberly-Clark plant in Askar.
“The start-up of the new Olayan Kimberly-Clark plant which represents a significant new investment of around $56million for the company, is also representative of the confidence which the company has in Bahrain as a manufacturing centre,” the Minister said.
“The robust new business start-ups thus far in 2011, are a clear testament to international investors continued confidence both in the Bahrain economy, and in Bahrain as a base for conducting regional business. The more than 6000 visitors and over 1700 participants that took part in the Middle East Oil and Gas Show (MEOS) held in Bahrain this month is also a good indication of the level of interest currently in doing business in the region. This is also reaffirmed by the UNCTAD 2011 World Investment report which shows that FDI inward stocks for Bahrain are the highest amongst the GCC member countries compared to GDP, at 66.9%,” the Minister said.
“The wise leadership in Bahrain has long recognized the importance of a balanced economy to include industry and services, and has for decades concentrated efforts on creating an enabling commercial and manufacturing environment and infrastructure, which today supports a diverse manufacturing portfolio, of which Olayan Kimberly Clark is an important contributor, and as a whole industry in Bahrain contributes some 17% of Gross Domestic product, around 50% up on 5 years ago, and with the small and medium industries playing an increasingly more important role. We also see industrial investment ramping up with several billion dollars of new investment in the new Salman Industrial City,” he added.
“Over the coming years we expect to see continuing growth which will outpace that of the developed economies; a growth which will be punctuated by more than $20 billion investments in Bahrain’s energy industry over the next two decades, and together with the completion of the Bahrain Qatar bridge, will give a significant boost to Bahrain’s position as the logical base for foreign direct investment in the region,” the Minister said.
“The Ministry of Industry and Commerce’s industrial policy is firmly anchored in the belief that manufacturing is important to promote economic growth and development, and a core element in that policy is making more industrial land available for future projects to support the growing demand, support manufacturing towards higher levels of innovation and productivity, and to continue improving the attractiveness of the country as a home for foreign direct investors,” he added.
“The Bahrain International Investment Park (BIIP), which was established back in 2005 was an initiative undertaken by the Ministry of Industry and Commerce as one of those key elements to enhancing Bahrain’s attractiveness to foreign investors, and was positioned to support and nurture the development of the best of Bahraini and Middle East companies, and to attract major international manufacturers. With more than 70% of the facility already let, I would say that we are well on the way to achieving that goal,” he said.
“The Ministry of Industry and Commerce is also well aware that the needs of business changes over time, and that the dynamics of world trade impact implicitly on the need for a continuous review of the legal and administrative environment, as well as trade policy, so as to ensure that this soft infrastructure compliments the hard infrastructure developments in a way that is conducive to business expansion. In choosing Bahrain for your investment, I congratulate you again for that, and wish you every success for the future and thank you for choosing Bahrain,” he said.
“The company’s latest investments are expected to almost triple the production capacity of tissues from the current capacity of 14,000 tons per year to 45,000 tons per year, and will also enable the company to significantly improve the quality of paper products produced within the its facilities. Additionally, it will alleviate the company’s dependence on third-party hard rolls and enable it to directly cater to the continued growing needs of customers and consumers for brands such as KLEENEX and VIVA. I believe that congratulations are in order, not only for the completion of the new facility, but also for their foresight in choosing Bahrain as the site for their new investment,” he explained.