From powering its economy with a historic surge in oil and gas production to forging a dynamic future through massive investments in aluminium, manufacturing, and cutting-edge construction, Bahrain's industrial landscape is a compelling story of energy, innovation, and strategic diversification.
Key Takeaways
- Bahrain's oil and gas sector contributed 18.5% to the GDP in 2022, with natural gas production reaching 13.7 billion cubic meters
- Bahrain produced 221,000 barrels per day of petroleum and other liquids in 2023, marking a 2.5% increase from 2022 due to enhanced recovery techniques
- The Bahrain Petroleum Company (Bapco) refinery processed 267,000 barrels per day in 2022, refining 12.5 million tons of crude oil annually
- Aluminium production at Alba plant reached 1.69 million metric tons in 2023, a record high
- Alba Line 6 smelter capacity is 514,000 MT per year, commissioned in 2022
- Bahrain's aluminium exports valued at $5.2 billion in 2022, 70% to Asia
- Construction sector grew 7.2% in 2023, contributing 6.8% to GDP at BHD 1.8 billion
- Bahrain new building permits issued totaled 4,200 in 2022, up 15% YoY
- Infrastructure projects under way valued at $25 billion in 2023, including Causeway expansion
- Electricity generation capacity reached 4,200 MW in 2023, with 98% gas-fired plants
- Renewable energy share targeted at 20% by 2035, solar PV at 300 MW in 2023
- Desalinated water production hit 650,000 m3/day from 6 plants in 2022
- Industrial production index rose 4.5% YoY in Q4 2023 to base 2018=100
- Manufacturing PMI averaged 52.3 in 2023, indicating expansion
- Industrial sector employment 85,000 jobs in 2023, 25% of workforce
Bahrain's industrial economy thrives on its expanding oil, aluminium, and construction sectors.
Construction Sector
- Construction sector grew 7.2% in 2023, contributing 6.8% to GDP at BHD 1.8 billion
- Bahrain new building permits issued totaled 4,200 in 2022, up 15% YoY
- Infrastructure projects under way valued at $25 billion in 2023, including Causeway expansion
- Residential construction starts reached 25,000 units in 2022
- Road construction expenditure BHD 500 million in 2023 for 150 km new highways
- Commercial building completions 2.5 million sqm in 2022
- Construction employment peaked at 180,000 workers, 70% expatriates in 2023
- Public sector construction contracts awarded BHD 2.2 billion in 2022
- Sustainable building certifications reached 120 projects in 2023
- Airport expansion construction at Bahrain International added 70,000 sqm terminal in 2022
- Housing projects under Tamkeen delivered 10,000 units since 2019 to 2023
- Marine construction for ports expanded Mina Salman by 1.5 million TEU capacity in 2023
- Hotel construction boom added 5,000 rooms in 2022-2023 period
- Water infrastructure projects cost BHD 1 billion, desal plants upgrade in 2023
- Power plant construction at Riffa added 500 MW CCGT capacity in 2022
- Industrial zones construction in Bahrain Logistics Zone spanned 15 million sqm by 2023
- Sewage treatment plants built 5 new facilities handling 500,000 m3/day in 2023
Construction Sector Interpretation
Bahrain’s construction sector is quite literally laying a new foundation for the economy, building everything from highways and houses to ports and power plants with an urgency that suggests the national hobby is now competitive cement mixing.
Industrial Output and Employment
- Industrial production index rose 4.5% YoY in Q4 2023 to base 2018=100
- Manufacturing PMI averaged 52.3 in 2023, indicating expansion
- Industrial sector employment 85,000 jobs in 2023, 25% of workforce
- Industrial exports totaled BHD 4.5 billion in 2022, 45% of total exports
- Capacity utilization in manufacturing averaged 78% in 2023 survey
- Industrial accidents rate 1.2 per 1,000 workers in 2022
- R&D spending in industry 0.8% of GDP, BHD 150 million in 2023
- Industrial zones occupancy 92% in Salman Industrial City 2023
- Productivity per industrial worker BHD 45,000 annually in 2022
- SME contribution to industrial output 35%, 12,000 firms in 2023
- Export processing zones generated $2 billion industrial value in 2022
- Labor productivity growth 3.2% in industry 2023
- Industrial training programs graduated 15,000 workers in 2022
- Value added per employee in oil refining BHD 120,000 in 2023
- Industrial GDP share stable at 22% from 2020-2023
- Female participation in industrial workforce 28% in 2023, up 5% YoY
Industrial Output and Employment Interpretation
Bahrain’s industrial sector is humming along with a productive swagger—its PMI is smiling, its factories are nearly full, and its exports are carrying a hefty load—yet it still has room to grow by tapping its women power, boosting R&D ambition, and keeping an eye on safety so that all this forward motion doesn't come at the cost of its workers.
Manufacturing Sector
- Aluminium production at Alba plant reached 1.69 million metric tons in 2023, a record high
- Alba Line 6 smelter capacity is 514,000 MT per year, commissioned in 2022
- Bahrain's aluminium exports valued at $5.2 billion in 2022, 70% to Asia
- Asry shipyard repaired 150 vessels in 2023, with drydock capacity for 400,000 DWT
- Arab Iron and Steel Company produced 1.2 million tons of rebar in 2022
- Gulf Aluminium Rolling Mill (GARMCO) output 380,000 tons of flat-rolled products in 2023
- Manufacturing sector FDI inflows to Bahrain hit $450 million in 2022
- Batelco manufacturing of telecom equipment contributed BHD 120 million to GDP in 2023
- Food processing industry output grew 8% to BHD 250 million in 2022
- Pharmaceutical manufacturing in Bahrain produced 500 million doses in 2023
- Plastic products manufacturing reached 150,000 tons annually in 2022
- Cement production at Gulf Cement plant was 2.5 million tons in 2023
- Electronics assembly FDI from Taiwan firms totaled $200 million in 2023
- Textile and apparel output value BHD 80 million, employing 5,000 in 2022
- Glass manufacturing at Gulf Glass produced 120,000 tons of float glass in 2023
- Furniture manufacturing exports reached $50 million in 2022
- Paper and cardboard production 100,000 tons per year in 2023
- Auto parts manufacturing cluster produced BHD 150 million worth in 2022
- Jewelry manufacturing output valued at BHD 300 million, 60% exports in 2023
- Chemical manufacturing excluding petrochemicals grew 12% to BHD 400 million in 2022
Manufacturing Sector Interpretation
Bahrain's factories are humming with such industrious might that its GDP could probably be forged from aluminium, bolted with steel, wired for sound, polished with glass, and shipped out on freshly repaired tankers, all while wearing locally made jewelry and taking its vitamins.
Oil and Gas Sector
- Bahrain's oil and gas sector contributed 18.5% to the GDP in 2022, with natural gas production reaching 13.7 billion cubic meters
- Bahrain produced 221,000 barrels per day of petroleum and other liquids in 2023, marking a 2.5% increase from 2022 due to enhanced recovery techniques
- The Bahrain Petroleum Company (Bapco) refinery processed 267,000 barrels per day in 2022, refining 12.5 million tons of crude oil annually
- Bahrain's proven oil reserves stood at 124.6 million barrels as of 2023, with an R/P ratio of 3.8 years based on current production rates
- Natural gas consumption in Bahrain reached 14.2 billion cubic meters in 2022, primarily for power generation and industrial use
- Bahrain's upstream oil investments totaled $1.2 billion in 2023, focusing on the Bahrain Field redevelopment with Chevron partnership
- The Awali oil field produced 45,000 barrels per day in 2023, accounting for 20% of national output
- Bahrain exported 180,000 barrels per day of crude oil in 2022, mainly to Asia, generating $8.5 billion in revenue
- Gas processing at Bahrain LNG terminal handled 800 million cubic feet per day in 2023
- Bahrain's oil sector employed 12,500 workers in 2022, with 40% in expatriate roles
- Petrochemical output from GPIC reached 2.3 million tons in 2022, including ammonia and methanol
- Bahrain's shale gas reserves estimated at 3.5 trillion cubic feet, untapped as of 2023
- Upstream gas production hit 500 million cubic feet per day in 2023 from new wells
- Bapco Energies invested $500 million in carbon capture tech in 2023 for oil ops
- Oil revenues accounted for 60% of government budget in 2022, totaling BHD 2.1 billion
- Bahrain's rig count averaged 8 active rigs in 2023, up 20% from prior year
- Condensate production reached 40,000 bpd in 2023 from Bahrain Field
- LPG production at Bapco refinery was 1.2 million tons in 2022
- Bahrain joined OPEC in 2019, influencing quota of 183,000 bpd crude in 2023
- Flared gas volume in Bahrain was 0.5 billion cubic meters in 2022, reduction of 15%
Oil and Gas Sector Interpretation
Bahrain is expertly squeezing its aging fields for every last drop, with clever tech and deep pockets keeping the nation's economic engine—and its international obligations—humming for now.
Utilities and Energy
- Electricity generation capacity reached 4,200 MW in 2023, with 98% gas-fired plants
- Renewable energy share targeted at 20% by 2035, solar PV at 300 MW in 2023
- Desalinated water production hit 650,000 m3/day from 6 plants in 2022
- Peak electricity demand 3,800 MW in summer 2023, up 5% YoY
- Natural gas for power gen consumed 12 billion m3 in 2022
- Solar panel installations totaled 200 MW cumulative by end-2023 under NREP
- Water consumption per capita 250 liters/day in 2023, 40% industrial use
- Grid losses reduced to 5.2% in 2022 through smart grid upgrades
- Wind farm pilot project at 30 MW planned for 2024, feasibility in 2023
- Electricity tariffs for industry averaged 0.045 BHD/kWh in 2023
- Wastewater treatment capacity 400,000 m3/day, 90% reuse in industry 2023
- Energy efficiency program saved 150 GWh electricity in manufacturing 2022
- Hidd Power Plant Phase 6 added 650 MW in 2022
- Green hydrogen pilot production 100 tons/year started 2023
- District cooling systems capacity 1.2 million RT in industrial areas 2023
- Fuel oil consumption for utilities dropped 30% to 0.5 million tons in 2022
- Smart meters installed 500,000 units covering 90% consumers by 2023
- Industrial electricity consumption 25% of total at 8 TWh in 2022
Utilities and Energy Interpretation
Bahrain's energy landscape shows a nation diligently fattening its grid with natural gas while cautiously courting renewables, like someone trying to balance a lavish banquet with a diet that starts tomorrow, all while smartly squeezing waste from its water and power systems to quench its industrial thirst.
Sources & References
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