Bahrain rises

Bahrain is embarking on major infrastructure development.

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Bahrain looks set to show accelerated economic growth in 2012, with a major focus on housing and infrastructure projects.

After some difficult months, Bahrain’s economy has returned to growth and looks set to accelerate in 2012. While concerns remain about the international climate, public investment and renewed private sector activity are having a positive effect on the country’s economic health, reports the Oxford Business Group.

The Kingdom is expecting growth of 5% next year, Sheikh Mohammed Bin Essa Al Khalifa, the chief executive of the Bahrain Economic Development Board, reported in late October.

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Al Khalifa said that the government’s stimulus spending, plus financial support from the GCC, would contribute to economic expansion. The GCC has pledged $10bn over ten years to support the state’s economic and social development policies, including the housing to address the current shortage.

Al Khalifa added that local business representatives and officials were intensifying their promotion of the country as an investment destination, taking steps that have included visits to the UK, US, France, Italy and Germany.

In mid-October, for example, Al Khalifa was in the UK, encouraging British firms to invest in Bahrain. He highlighted opportunities in sectors that include infrastructure, construction and manufacturing.

Bahrain’s Arab Shipbuilding & Repair Yard Company (ASRY) recently inaugurated its new 1.38km repair quay wall as part of its 35th anniversary celebrations, together with a 200,000m2 offshore fabrication and load-out area (see the Site Visit on p38).

The main contractor on the project was Nass Contracting, while the consultant was Royal Haskoning. The project is the culmination of an $188m facilities expansion programme at ASRY, which is owned by the companies comprising OAPEC (Organisation of Arab Petroleum Producing Countries), namely Bahrain, Saudi Arabia, the UAE, Kuwait, Qatar, Iraq and Libya. Its workforce as of mid-2011 was 6,000.

Over the course of its development the shipyard has added two large floating docks to its repair facilities. It recently opened two modern slipways, among the largest of their kind in the world. All three drydocks and the two slipways are backed up by comprehensive array of workshops, with dedicated technical services from a range of sub-contractors, covering all areas of ship repair and maintenance.

ASRY repairs a range of commercial ships, such as chemical tankers, dredgers, container ships, bulk carriers and general cargo ships. Recently it diversified into the oil and gas sector as well as naval repair.

The inauguration “marks a significant milestone in the development of the company, as it wildramatically increase production capacity and enable the company to repair offshore vessels and oil rigs, a new business area with rapid growth,” said ASRY chairman H.E. Sheikh Daij bin Salman Daij Al Khalifa.

“Over the last three-and-a-half decades, ASRY has developed into one of the world’s largest and most efficient ship-repair and conversion yards,” commented ASRY CEO Chris Potter.

As an interesting component of its diversification strategy, as it seeks to counter tough market conditions in the global maritime industry, ASRY “has already started the process of building two cutting-edge power barges,” according to chairman Al Khalifa.