The Kingdoms has what it needs for ships to arrive
Bahrain is an island nation. And like most geographically small island nations, it is not rich in natural resources.
In fact, the country has found much of its success due to a resourceful population and leadership, along with the strong relationships it maintains with its resource-rich neighbours. It has always maintained strong strategic and economic ties with its neighbouring countries like the UAE and KSA.
Even though the country has relied on oil for much of its wealth in the past, active steps are being taken to diversify its sources of strength, much like the efforts of the aforementioned neighbours. However, unlike its larger counterparts, Bahrain has different areas of focus for its development to happen.
For starters, it does not have anywhere near as much geographical area as the likes of KSA. And it is certainly lacking in most natural resources as well. And as such, it is unlikely to see too much success in focusing on manufacturing industries.
The country and its leadership recognize this. And that is why for the desired economic diversification as part of the country’s goals for the year 2030, they are focusing on industries where the country can excel.
Industries like tourism, technology and international trade are being actively promoted, and measures are being taken to facilitate each of them.
And one very important facilitator of international trade, putting aside the country’s new and improved air travel infrastructure, is its maritime infrastructure. Specifically, the ports and container terminals and the related infrastructure of the country that serves the needs of cargo ships and their cargo.
What are the ports in Bahrain?
Bahrain has 5 ports on its shoreline, despite the small size. Port of Mina Salman, Khalifa Bin Salman Port (KBSP), Port of Muharraq, Port of Sitra and the historic Al Manama Harbour.
The ports vary in size, the facilities they offer and what ships they serve.
Mina Salman, for example, is recognised as a container terminal, rather than a full-fledged port. Also, the relatively new Khalifa Bin Salman Port lies close to Mina Salman, with a purpose-built causeway that links the two.
The two ports are also a short drive away from the Saudi border, with only 30km by road to reach the country.
And the ports are performing strongly too, despite what negative impacts that the pandemic has had. KBSP even saw its highest throughput (in tons) for the past 6 years in the year 2020. It also saw an increase in total vessels in 2020, compared to the two previous years.
It suffices to say that the country has the required infrastructure to continue growing its performance in maritime trade.
How will Bahrain’s economy benefit from its ports?
Ports are a crucial connection between land and sea transport. For most nations that are not connected via road to multiple other countries, having a seaport will be the difference maker that determines much of their economic success.
Over 80% of trade that happens today is over the sea. Studies on the relation between ports and a country’s economic success also reveal that there is a strong correlation between trade and GDP.
As such, for any country that is trying to grow its economy, having a strong port infrastructure will be key. Based on the efforts and plans that it has put in place, Bahrain is one such country that is trying to grow.
And since the country has strong ambitions on strengthening its economy in industries besides oil, the importance of ports has become even more pronounced.
Having a strong port infrastructure will allow the country to continue to attract investors and businesses from around the world who wish to trade in the Middle East. Other countries in the region offer strong port infrastructure, and to compete with them, Bahrain has to present its strong ports along with the many other benefits it provides to businesses and investors in the country.
How can companies in Bahrain benefit from the ports in Bahrain?
The country already enjoys strong political and trade relations with many of the world’s powerful nations. It has especially strong relations with countries in the same region, through its active membership in the GCC.
It has strong ties to KSA, and healthy relations with the likes of the UAE, Kuwait, Oman and more. It also maintains strong ties with other economically significant countries such as China and India.
Bahrain presents a well-developed, feature-rich, affordable option for any business that wishes to trade with any of those countries. And with the country’s commitment to improving its port infrastructure along with its plans to encourage and grow several industries that rely on them, your business has the opportunity to benefit.
Yes, there are more established hubs of trade in the region, like Dubai. However, as the city has grown, Dubai has also become inaccessible or impractical to many due to astronomically high costs. It is then, that Bahrain’s growing economy becomes more attractive to investors and businesses.
You have a country that offers much of the same benefits that places like Dubai offer, with significantly lower costs for much of the same.
What should your Bahrain business do now to take advantage?
Read through our informed articles to learn more about how Bahrain continues to grow its economy, and understand why you should set up your business here.
And when you do decide to set up in Bahrain, have all your needs met by a local corporate sponsor who can make business happen in Bahrain.
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