• Aleastur’s new $15m hub to serve global markets
• GCC base to shorten lead times and strengthen regional supply chains for aluminium smelters and cast-houses

Aleastur, a major European metal producer announced launching the Gulf Cooperation Council’s (GCC’s) first state-of-the-art aluminium grain refiners and master alloys production hub at its new Middle East base in Bahrain. The hub will be the Spanish firm’s first overseas facility and will produce high quality aluminium alloys to be used for different purposes across various industries.

ALEASTUR’s new $15 million site at the heart of the Gulf region will supply speciality alloys to global markets, including Asia, North America and the GCC. The Bahrain facility will be exporting approximately 85% of its annual production to regional players in the industry, including main aluminium smelters and cast-houses.

ALEASTUR is one of Bahrain Mumtalakat Holding Company (“Mumtalakat”) portfolio companies and is considered one of the top aluminium grain refiner players in the world and is expected to hit revenues in the new facility of nearly $53 million by 2025 as it ramps up foreign exports.

As part of its expansion strategy, the facility In Bahrain, which is designed to be “an ideal” aluminium downstream hub will reduce lead times and strengthen supply chains for the aluminium industry in the region and neighbouring markets as global economies begin to reboot and construction projects resume.

The launch of this facility is a great example of the Kingdom of Bahrain’s recently announced economic recovery plan in action. This supports the mandate to continue attracting investment to the Kingdom, ultimately creating jobs for Bahrainis.

“We hope to establish a solid regional base and establish an access point from Spain not only to cater the GCC but other several regions. The geographical location of Bahrain and easy access to some of the fastest-growing markets here will provide the platform we need to achieve our international growth ambitions.  

We’re thrilled to be joining our industry peers in Bahrain and we look forward to tapping into a growing aluminium hub right next door to Alba. In combination with our Spanish facilities, the new site will be particularly well-positioned to export to the South East Asian and Indian markets. In addition to Bahrain’s well-placed geographical location, we will benefit from the highly skilled local workforce, strong logistics infrastructure and best-value operating costs.” said Sergio Martinez CEO of ALEASTUR Group.

 ALEASTUR’s new hub is part of a broader plan, in partnership with Mumtalakat, who acquired a significant stake in the company in 2016, to develop the Kingdom’s downstream aluminium sector and strengthen synergies between local manufacturers and key international players.

Commenting on the announcement, HE Khalid Al Rumaihi, CEO of Mumtalakat, said, “As one of our key investments, ALEASTUR’s presence in Bahrain will add significant value to the growing downstream aluminium cluster which will enable them to cater to the growing demand in the region and beyond. We look forward to seeing their operations expand and are excited by the prospects this next phase for ALEASTUR brings.

Bahrain is already known in the Gulf region for its booming aluminium trade. The Kingdom’s national aluminium manufacturer, Alba, is the largest single-site smelter in the world outside of China, producing at full capacity more than 2% of global output. Mid and downstream clusters are fast developing around Alba, feeding off the metal it produces. Aluminium exports made up about 34.2% of Bahrain’s non-oil exports in 2020 and the sector already contributes 11.1% to GDP.

HE Khalid Humaidan, Chief Executive of Bahrain’s Economic Development Board, said, “The decision by Aleastur to build its first international base in Bahrain, is a prime example of the Kingdom’s attractiveness in the manufacturing and logistics sectors which we believe can be summarized by three main attributes. Firstly, our competitive operating costs are likely to be more profitable, secondly, our free trade agreements support businesses. Last but not least, a key decisive element is the highly skilled workforce we have to man those business and keep them successful.” Other aluminium companies operating in Bahrain include BAMCO, GARMCO, Balexco, and Midal Cables. The firms distribute internationally through Bahrain’s FTAs with 22 countries around the world, including the US.

• 260 jobs to be created in local tourism industry over three years
• Middle East’s first cylindrical aquarium and top restaurant brands among major investments in Bahrain’s tourism sector Investment chiefs optimistic about tourism industry’s future as international travel resumes

Bahrain’s Economic Development Board (EDB) has attracted almost $40 million (BD 15 million) worth of investments in the Kingdom’s tourism sector to date, which will help to create some 260 jobs over the next three years.

Bahrain’s EDB is seeking to capitalise on the growth of the country’s tourism sector as meaningful international travel resumes. The Kingdom’s national carrier, Gulf Air, announced last month that around 80% of the airline’s pre-pandemic flights will resume from the summer season and Bahrain is appearing on more travel green lists across markets. 

Among the key tourism investments was Remza Investment Company’s addition of Turkish hospitality brand, Gunaydin, to its portfolio. Located at The Terminal, one of Bahrain’s unique real estate developments, Gunaydin’s $6.5 million investment will be its first restaurant in the Kingdom. The outfit will create 80 jobs over three years and add to the wide variety of international restaurants springing up in the country.

Remza Investment Company’s Chairman and CEO, Dr. Fadhel Al Arrayed, said: “Gunaydin is a prestigious global brand and is a valued addition to the Kingdom’s numerous eateries. Our first investment, a popular Istanbul restaurant, will be operated in Adliya in a 1,000-metre square space which can accommodate up to 300 customers. We would like to thank our partners and the EDB for providing us with a welcoming and supportive environment.”

Another investment by renowned chocolate brand, Patchi, allocated $8 million for the expansion of the business in the Kingdom. Launching new projects that offer unique experiences for customers, Patchi’s expansion will help create 160 jobs over three years.

On this regard, Patchi Bahrain emphasized that the Kingdom of Bahrain offers a business environment that is in line with their aspirations for expansion, both nationally and regionally. They believe that the country’s stability and openness, along with the support provided by the EDB and other organisations, helped them in developing the business, and they are proud to be part of Bahrain’s vibrant and growing tourism sector.

 ELSS Group, which specialises in the construction of aquariums and marine parks, also announced a $1 million investment in their regional operational base at the Bahrain Aquarium, which is the Kingdom’s largest aquarium at the Mall of Dilmunia. The largest cylindrical aquarium in the Middle East has a depth of 17 meters and is spread over four floors. It includes a life support (water purification) system on two floors beneath and another at the top of the aquarium. ELSS will operate and maintain the aquarium until at least mid-2025. This is in addition to other aquarium projects ELSS plans to undertake in the Kingdom and neighboring countries including Saudi Arabia, Oman, and the UAE. The group’s projects are estimated to create approximately 20 jobs in the fields of local marine biology, environmental sciences, underwater diving, and engineering.

ELSS Group’s Managing Director, Jed McAteer, said: “The Kingdom of Bahrain presents an ideal destination to develop and expand our business across the region. We have benefitted from the many competitive advantages offered by the country’s business-friendly environment. We are pleased to be working alongside the EDB as well as a number of qualified Bahraini companies in the architecture, construction, and retail industries. We welcome this valuable opportunity to share our expertise in Bahrain, which is an ideal environment for our future projects.” EDB’s Executive Director of Investment Origination, Ali Al Mudaifa, said: “Tourism, with its many restaurants, hotels, and resorts, is among the industries we expect to bounce back to previous levels of activity as the country continues to gradually reopen, and restrictions ease, allowing life to return to normal. Attracting investments such as these are in line with the EDB’s strategy to further economic diversification by contributing to the development of the sector and supporting the creation of jobs in the local market.”

Hub launched in cooperation with Tamkeen and the Bahrain Economic Development Board

Manama – Bahrain: Citi today inaugurated a global technology hub at its premises in Bahrain. The Citi technology hub, launched as part of a long-term strategic partnership with Tamkeen and the Bahrain Economic Development Board (EDB), will be one of the most advanced in the region with the aim of creating 1,000 coding jobs over the next ten years.

Technology hubs support many of Citi’s global businesses and clients and accelerate the development of digital solutions. Citi selected Bahrain as the location of its new technology hub for several reasons, including availability of skilled workforce, transparent regulations and government support.

Ala’a Saeed, Citi FX’s Global Head of Electronic Platforms & Distribution, said: “Citi’s industry-leading global foreign exchange business will be the first to recruit technologists at the technology hub. Our initial focus in Bahrain will be on engineering for Citi’s flagship proprietary platforms, working to enhance execution and connectivity capabilities across FX trading and analytics systems.

“Over time, the technology hub in Bahrain will scale to support Citi Markets and Citi’s Institutional Client Group more broadly, extending the scope of capabilities developed locally even further,” continued Ala’a.

Central to this programme is TAMKEEN, the Kingdom’s Labour Fund, which aims as part of its efforts to create new job opportunities and upskill individuals in order to boost their competitiveness and employability in the private sector, and further their career development through programmes which enable them to enter international markets, becoming leaders in their fields.

Citi Bahrain’s Chief Executive Officer, Michel Sawaya, commented: “The pace of automation and digitalization accelerated rapidly in the past two years across the financial industry. Our new technology hub in Bahrain will allow us to rapidly scale to meet increasing global client demand for electronic solutions.”

He added, “We are thrilled to have the hub here and tap into Bahrain’s pool of diverse talent to hire advanced technologists with a strong business background, and I am certain that the hub will succeed in creating technology that will benefit our clients globally.”

Citi Head for the Middle East and North Africa (MENA) Elissar Farah Antonios, said: “At Citi, we’re investing heavily in digital technologies and platforms to serve our clients and our businesses across the globe. The new technology hub brings us a step closer to providing a better client experience in a world that is highly digitized and contributing significantly to our clients’ success. It also highlights our commitment to the Kingdom of Bahrain as a strategic hub for innovation.”

H.E. Hussain Mohammed Rajab, Tamkeen’s Chief Executive highlighted the importance of such programmes for potential investors to realize the depth of quality talent available in Bahrain. 

He said, “Bahrain has a proven track record that reflects the readiness and global competitiveness of its local workforce, enhancing the Kingdom’s position in attracting direct investment across all priority sectors. We highly value the strategic partnership with EDB and all stakeholders in Team Bahrain where Tamkeen aims to achieve economic growth and impact by supporting the private sector towards productivity, innovation, digitization, internationalization, and building the human capital advantage, especially in technology and emerging skills.

Bahrain EDB’s Chief Executive, H.E. Khalid Humaidan said: “Bahrain has been renowned for its solid foundations in the Financial Services sector for decades. The programme that we have agreed with Citi is a perfect example of the strides we are taking to evolve our economy and remain at the forefront of digital transformation. The opportunity this represents for us as a Kingdom is such that we can impact the world from Bahrain, with Bahraini talent supporting Citi’s ambitions to deliver results all across the globe.”

“At the EDB, we continue to go across the world looking to attract global benchmark companies like Citi to establish operations in the Kingdom and benefit from our world-class infrastructure and talent. We are extremely excited to enter into the next phase of our relationship with Citi and look forward to seeing them thrive in the Kingdom,” he continued.

Citi has been present in the MENA region for more than 50 years. Its institutional capabilities in the region include Corporate & Investment Banking, Capital Markets, Sales & Trading, Transactions Services, Equity Research, and Islamic Banking. Citi’s Consumer Banking services in MENA cover the UAE and Bahrain, while it maintains close relationships with affluent and high-net-worth clients in the region through Citi Global Wealth.

The Kingdom of Bahrain was recently ranked as first in the GCC for availability of advanced computer programming talent in Information and Computer Technology (ICT), according to the International Telecommunication Union (ITU) Report 2020.

The ITU is a specialised agency of the UN responsible for matters related to information and communication technologies including setting the international standards for ICT indicators. The annual price trends report recently released, measures the level of digital transformation throughout the world, and highlights the value and quality of ICT services provided by local operators.

As indicated in this report, Bahrain continues to meet the UN affordability of 2% GNI per capita target across all ICT packages measured, providing accessible and affordable technology for its community. The report also scores Bahrain as the best in data value per GB within the GCC, and 2nd in the Gulf (8th in the world) for affordability of basic mobile cellular packages.

Dalal Buhejji, Executive Director of Investments at the Economic Development Board said, “Bahrain continues to attract direct investments within the ICT sector which is driven by many factors such as the availability of ICT talent, the competitive cost of doing business which forms the financial attractiveness for investors to set up and operates from the Kingdom.

Bahrain’s high ranking in this report is a testament to the kingdoms strategy and investment to further advance the ICT sector. In fact, just last year Bahrain Economic Development Board attracted over BD300 million in direct investments which included many within the ICT sector which will generate employment opportunities in Bahrain.”

-ENDS-

For more information, please contact:

Mahmood Ali
Executive Director, Communications
Economic Development Board
Phone : +973-39798919
E-mail : internationalmedia@bahrainedb.com

About Bahrain Economic Development Board

The Bahrain Economic Development Board (EDB) is an investment promotion agency with overall responsibility for attracting investment into the Kingdom and supporting initiatives that enhance the investment climate.

The EDB works with the government and both current and prospective investors, in order to ensure that Bahrain’s investment climate is attractive, to communicate the key strengths, and to identify where opportunities exist for further economic growth through investment.

The EDB focuses on several economic sectors that capitalise on Bahrain’s competitive advantages and provide significant investment opportunities. These sectors include financial services, manufacturing, technology and innovation, tourism, education, healthcare, logistics and transport.