Bahrain's current industrial programme was instituted in 1975 in an effort to diversify away from hydrocarbons. The plan has been successful - between 2001 and 2006 alone, non-oil industrial output increased by an average of 10% per year. The aluminium production industry accounted for 38.5% of total manufacturing output in 2005, making it the single largest segment and the primary contributor to recent industrial growth.

The government has created two new industrial parks in order to attract foreign companies to Bahrain and expand the sector. In order to facilitate further growth of industry in Bahrain and in foreign markets, a local group of leading industrialists recently launched the Bahrain Industrial Group, which will identify, encourage and promote Bahraini projects and interests and work to bring foreign investment to the island.

Obtaining an industrial license in Bahrain is quit simple and the procedures are straightforward. Industrial Development Directorate of the Ministry of Industry and Commerce is responsible of issuing industrial licenses. The procedure could be summarised as follows:

Submit industrial Licence application form duly completed together with a copy of passport/CPR to the licensing section of the Industrial Development Directorate (IDD).

• The application will be reviewed and a preliminary licence will be issued
• The applicant should decide on location of his project in one of the existing industrial areas or another suitable location.
• The IDD will write to the following authorities for their approval.
  1. Municipalities.
  2. Ministry of Health (Directorate of Public Health).
  3. Environmental Protection Affairs.
  4. Other related authorities if needed.
• After obtaining the approval of the above authorities, a final licence will be issued.
• The applicant should then obtain a commercial registration certificate from Ministry of Commerce, which will allow him to commence business.

Bahrain Development Bank (www.bdb-bh.com), offers a wide range of distinctive financial services which are tailored to meet the special needs, for the development of small or medium-sized projects in the industrial and service sectors of Bahrain.

Besides oil and gas industries, the other main industrial sectors in Bahrain are:

• Aluminium
• Petrochemicals and Plastics
• Engineering
• Food Processing
• Pharmaceutical
• Handicrafts
• Small and Medium

For new start ups, the Bahrain Business Incubator Centre (BBIC) has been set up with the primary focus of encouraging the spirit of innovation and entrepreneurship among aspiring businessmen, by providing them with an array of resources and services to sustain their business in the initial stages, and through continued support in order to ensure their successful development, over a period of time. The BBIC is the first of its kind in Bahrain. An organization initiated & owned by Bahrain Development Bank, supported by the Ministry of Commerce & Industry, and in co-operation with United Nations Industrial Development Organization (UNIDO).