Automotive Manufacturing
Driving the Middle East Forward in Automotive
Bahrain has consistently led the Middle East in developing a thriving automotive sector. The Kingdom now has substantial expertise in the sector, especially in motor sport, high performance car manufacturing and aluminum component manufacturing.
In 2004, Bahrain became the first ever Middle Eastern country to host a Formula One World Championship Grand Prix which took place at the world-leading Bahrain International Circuit. Following the recent signing of a new Formula One contract the Kingdom will host a Grand Prix until 2016.
The Automobile industry in Bahrain grew by 6.8% in 2007 and is on track to grow by a further 10% in 2008.
Car Manufacturing in Bahrain
Bahrain is an excellent location for car manufacturing due to the availability of raw materials such as aluminum, the low cost of energy and the availability of a skilled workforce.
Bahrain's Specialism in Aluminum
Bahrain is home to Alba, one of the world’s largest aluminum smelters, producing the highest grade material. This creates significant opportunities in downstream aluminum manufacturing for the automotive sector.
In 1992, AluWheel - a joint venture between the Bahrain based Alutech and BBS Kraftfahrzeugtechnik AG of Germany - became the first automotive venture in the Gulf region. The company was created to take advantage of the low-cost of aluminium and state-of-the-art technology available at its Bahrain plant, to manufacture high quality aluminium wheels.
Today, the company exports over half a million wheel castings a year to international car brands including Volkswagen, Fiat and Honda. Aluwheel is widely regarded as the most technologically advanced and successful manufacturer of wheel castings in the Gulf region.
Bahrain International Circuit
Bahrain was the first nation in the Middle East to host a Formula One World Championship Grand Prix, the Kingdom fought off fierce competition from elsewhere in the region to stage the race.
In April 2008 the Bahrain International Circuit staged its fifth Gulf Air Bahrain Grand Prix. The race has rapidly become one of the biggest sporting and social occasions in the Middle East and one of the most respected races on the global stage. By hosting the Grand Prix and other motor sport events Bahrain now has the reputation of being the centre of motor-sport in the Gulf.
The Bahrain International Circuit is the world's premier motor sport facility. Under the direction of His Highness Crown Prince Shaikh Salman bin Hamad Al-Khalifa, a passionate motor sport enthusiast, the Kingdom worked closely with Formula One in creating the most innovatively designed track in the world, equipped with the most cutting edge technology and supported by the world’s best infrastructure. At the inaugural race in 2004, the Bahrain International Circuit was awarded the ‘Best Organised Grand Prix’ by the FIA.
Far from being the traditional standalone circuit, the Bahrain International Circuit is designed to be an all-year-round sustainable business proposition - therefore the return on the initial investment of US$150m has already been substantial. The Bahrain International Circuit is designed to stage a wide range of all-year-round corporate, social and community events as well as motor sports events such as the International Drag Racing Festival and the Australian V8 Supercars - Desert 400.
The Bahrain International Circuit was also selected by US motor manufacturer GM, for its Hummer Academy, the only such Academy outside the USA. At this facility people can undergo intensive training in off-road, desert driving in the high-powered SUVs.
Key facts about the Bahrain International Circuit
• The Bahrain International Circuit is the only Formula One World Championship Grand Prix Circuit to hold the accolade of being an FIA Institute Centre of Excellence Award.
• The 70,000 spectator track was designed by German track specialist Herman Tilke and the architecture is based on Arabian themes.
• The 2007 Bahrain Grand Prix was one of the few F1 events to sell out. All its 45,000 seats were sold, which generated a gross economic impact of US$548m .
• During the Grand Prix the circuit employs over 3,000 people.
• The Bahrain Grand Prix is broadcast across the world and the 2008 event was watched by an estimated audience of 500 million.
• Bahrain International Circuit's high-tech design is underpinned by safety - the giant run-off areas and 150 strong, award winning strong medical team ensure risk is minimized during races.
The 2,500,000 m2 Park is situated in a superb location with excellent access to both the Bahrain International Airport and the new Shaikh Khalifa Sea Port in Hidd. The BIIP enjoys direct motorway access to Saudi Arabia, via the 25KM Saudi-Bahrain King Fahd Causeway and by 2013 will be connected to Qatar via the Qatar-Bahrain Friendship Bridge.
The BIIP, developed by the Bahrain Ministry of Industry and Commerce, offers:
• Serviced industrial land at extremely competitive rental rates of $1.33/m2 per year
• Renewable 50 year leases.
• Alternatively pre built industrial units are available to rent
• No minimum capital required
• No recruitment restrictions for the first 5 years
To date, over 80 companies have been approved to come onto the Bahrain International Investment Park. Several companies are already fully operational and exporting manufactured goods to destinations throughout the Middle East region.
Companies at the Bahrain International Investment Park include:
- Kraft Foods (USA – manufacturing cheese and powdered beverage products)
- MTQ Corporation (Singapore – manufacturing components for oil and gas industry)
- Abahsain Fibreglass (Saudi Arabia – E-CR glass fibre manufacturing)
- Saudi Arabian Amiantit (Saudi Arabia – GRP and GRE pipe manufacturing)
- Banawi Industrial Group (Saudi Arabia – corporate headquarters)
Auto Club@bahrain
@bahrain is a unique commercial, educational and entertainment destination that is strategically located on 1 million square meters next to the Bahrain International Circuit (BIC), ‘The Home of Motorsport in the Middle East’. @bahrain provides rich, cutting edge experiences that span 10 interconnected industry sectors: Exhibition & Convention Facility; Hotels; Multi-Purpose Indoor Arena; Lifestyle Plaza incorporating Retail & Leisure and Techtainment; Auto Club and Engineering Facility; Research Institute; Technopark; Light Industry; and Education and Training.
@bahrain is a state-of-the-art location for business growth – attracting foreign direct investment, joint venture partnership arrangements, direct ownership and landlord-tenant relationships. @bahrain is an international trend-setter, with a focus on environmental advocacy and innovative technological practices, ensuring that the overall composition of the business will inspire future commercial strategies in the region.
The Auto Club@bahrain will blend a unique mix of five components:
• Premium club facilities
• Club services
• Formula 1 track access
• Storage
• Engineering facilities
@bahrain will be home to the Gulf’s first club solely dedicated to driving, maintaining and storing the world’s finest cars. The Auto Club@bahrain will be a thrilling destination for discerning auto aficionados to play in an exclusive environment that is dedicated to accommodating our guests’ most discerning tastes.
@bahrain will collaborate with local dealerships to establish the Middle East’s first engineering facility in training auto mechanics, cultivating a new skill and providing employment opportunities for Bahrainis. In addition to its convenience, the facility provides a more sustainable and environmentally friendly option than shipping or flying cars to Europe to be serviced or repaired. For more information, visit
www.atbahrain.com.bh.
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