Oil & Gas

While Bahrain’s oil reserves are modest compared to other GCC countries, oil and gas remain strategically important — particularly through refining and downstream operations rather than upstream production.

Bahrain hosts one of the oldest and most sophisticated refineries in the Middle East, serving both domestic needs and regional markets. The refinery processes crude oil sourced from Bahrain and neighboring countries, producing fuels and petroleum products that meet international specifications.

Natural gas supports power generation, water desalination, and industrial operations. Although hydrocarbons contribute a smaller share of GDP than in larger Gulf economies, they remain critical to energy security, export earnings, and industrial feedstock supply.

Petrochemical & Chemical

The petrochemical and chemical sector builds directly on Bahrain’s refining and gas infrastructure. Production includes basic petrochemicals, industrial chemicals, and downstream derivatives used in plastics, construction materials, and industrial applications.

Bahrain’s petrochemical industry benefits from proximity to regional feedstocks, efficient port access, and integration with manufacturing and export supply chains. While the scale is smaller than Saudi Arabia or Qatar, Bahrain focuses on efficiency, specialization, and export-oriented production.

The sector supports industrial diversification and provides inputs for local manufacturers while serving regional markets across the Gulf.

Power, Energy & Water

Reliable power and water infrastructure underpin Bahrain’s industrial and urban development. Electricity generation is primarily gas-based, ensuring stable supply for residential, commercial, and industrial consumers.

Water production relies heavily on desalination, integrated with power generation to maximize efficiency. As demand grows, Bahrain continues to invest in:

• Power plant upgrades

• Energy efficiency initiatives

• Water network optimization

• Wastewater treatment and reuse

Although renewable energy remains a smaller portion of the energy mix, Bahrain is gradually introducing solar and sustainability initiatives aligned with long-term environmental goals.

This sector is critical for supporting manufacturing, refining, and population growth.

Manufacturing & Fabrication (Including Aluminium)

Manufacturing is one of Bahrain’s strongest non-oil sectors and a core pillar of economic diversification. The country is a major aluminum producer, and aluminum-based manufacturing is a flagship industry.

Manufacturing activities include:

• Aluminum smelting and downstream aluminum products

• Fabricated metals

• Construction materials

• Food and beverage processing

• Light industrial goods

Aluminum production supports a wide ecosystem of downstream fabrication, including automotive components, building systems, packaging, and industrial parts. Bahrain’s manufacturers benefit from competitive energy pricing, skilled labor, and efficient logistics.

Industrial zones provide infrastructure and incentives that support both local manufacturers and international companies serving the GCC market.

Infrastructure, Construction & Facilities

Infrastructure and construction play a vital role in Bahrain’s economy, supporting industrial expansion, urban development, and connectivity with regional markets.

Key activities include:

• Roads, bridges, and transportation networks

• Industrial parks and logistics facilities

• Commercial and residential developments

• Utilities and public infrastructure

Facilities management, industrial maintenance, and technical services have grown alongside infrastructure investment, supporting long-term asset performance across industrial plants, commercial properties, and public facilities.

Bahrain’s location and connectivity — including causeway links and modern ports — reinforce its role as a service and logistics hub within the Gulf.

Bahrain’s economy is defined by early diversification, industrial efficiency, and regional integration. While oil and gas remain important — particularly through refining — the country’s real strength lies in manufacturing, aluminum production, petrochemicals, and well-developed infrastructure.

By concentrating on value-added industries rather than scale, Bahrain has built a resilient industrial base that supports exports, employment, and private-sector growth. Under Economic Vision 2030, continued investment in manufacturing, infrastructure, energy efficiency, and industrial services positions Bahrain as a competitive and business-friendly market within the GCC.

For companies targeting the Gulf region, Bahrain offers a focused, accessible, and industrially mature environment, particularly suited for downstream manufacturing, fabrication, and regional service operations.