Momentum behind Industry 4.0 in Bahrain is growing thanks to collaboration, forward-looking regulation and a commitment to skills building.
Industry 4.0 is transforming manufacturing, bringing with it economic growth, increased efficiency and competitiveness. In fact, this global market is growing fast and could exceed $620bn by 2030.
Sometimes referred to as the fourth industrial revolution, Industry 4.0 refers to the integration of digital technologies into manufacturing processes to produce higher-quality goods at reduced costs.
By way of example, the integration of technologies such as the Internet of Things (IoT), artificial intelligence (AI), machine learning, and edge computing offers the hope of real-time decision-making, predictive maintenance, and self-optimization of processes, leading to increased productivity and efficiency. The potential upside of Industry 4.0 technology adoption is fueling rapid growth
In Bahrain, as elsewhere, Industry 4.0 is helping power the country’s economic diversification efforts and creating new job opportunities. Bahrain’s strategic geographic location between Europe, Asia and Africa makes it an increasingly attractive global hub for manufacturing.
Leadership on Industry 4.0 adoption
Efforts to bolster the industrial sector’s adoption of Industry 4.0 technologies are happening at the highest level. The Bahraini government is working on a range of initiatives to facilitate the island nation’s transition towards Industry 4.0, with the aim to become a regional hub for “4IR-relevant technologies”.
Bahrain’s Industrial Sector Strategy 2022-26 aims to increase the industrial sector’s GDP contribution to $6.6bn by 2026, raise the proportion of industrial exports to 80%, and increase Bahraini employment in the sector to 25.3%.
This strategy is being supported by partnerships with the industry. In 2023, Bahrain launched iFactories, a national initiative to advance the industrial sector as part of the sector’s strategy. The goal of iFactories is to gauge the digital maturity and support investment in technology infrastructure and manufacturing automation. This initiative, jointly launched by the Ministry of Industry and Commerce and Bahrain’s Labour Fund Tamkeen, aims to transform 300 factories into smart factories by the year 2026.
Additionally, the Green Factory Seal programme looks to promote sustainable manufacturing by encouraging factories to adopt practices such as renewable energy, reuse of industrial waste, implementation of carbon-capture technologies and the use of environmental-monitoring systems. Eligible factories are incentivised with reduced loan rates, discounts on green installations and subsidised ESG training.
The government, with the support of the Bahrain Economic Development Board (Bahrain EDB) and Tamkeen, is also working with QiO, a company that focuses on accelerating Industry 4.0 adoption, to implement pilot projects in Bahrain.
Why closer collaboration with industry is needed
This collaboration has already given rise to a regional first-of-its-kind Industry 4.0 project.
BFG International, an engineering and manufacturing group with headquarters based in Bahrain, is introducing industrial automation as part of QiO’s first pilot project. The project involves the development of a real-time digital twin of factory operations. Digital twins are virtual representations of objects or systems that accurately reflect their physical counterparts, allowing for more integrated data processing that helps staff carry out real-time data interpretation and optimization. Those behind the pilot project hope it will offer complete performance transparency and a real-time roadmap to improvement.
An over reliance on manual data processing and a lack of centralization prevents manufacturers from having a complete picture of their operations. “Accurate, centralised data storage will drive considerable efficiency savings,” explains Dr. Samer Aljishi, President of BFG International.
Industry 4.0 is unlocking opportunities across key sectors.
“A lot of the innovation and technology adoption is seen in large process industries such as aluminium, refining, petrochemicals, plastics, and sophisticated metal processing industries,” Dr. Aljishi adds.
Improving efficiency and reducing waste in manufacturing
As well as lowering costs and raising productivity, the efficiency gains ushered in by Industry 4.0 approaches have the added benefit of reducing emissions and waste. Food manufacturer Mondelez has built its “Factory of the Future” in Bahrain, one of its six largest mega hubs. The firm has adopted cloud-based technology from Schneider Electric to monitor energy, water and natural gas usage in real time. This system allows the manufacturer to compare sustainability targets and benchmark against other factories.
Additionally, Aluminium Bahrain (Alba) has formed a joint venture with Japan’s Daiki Aluminium Industry Company. The partnership aims to reduce waste by using cutting-edge technology to recover valuable metal from dross – a by-product of aluminium manufacturing.
Why skills will be the key to success in the era of industry 4.0
To realise the potential of Industry 4.0, companies need more than technology alone. They need access to a skilled workforce and a flexible labour market. Countries where Industry 4.0 adoption is high may experience wage hikes, as well as increases in productivity and competitiveness.
As such, businesses will need to weigh up access to a pool of skilled professionals with potentially higher labour costs. These considerations will prove important when determining where to build out operations. High costs are not an inevitability: despite firm progress in Industry 4.0, labour costs in Bahrain have remained relatively low in the manufacturing sector.
According to EY research, Bahrain offers the most cost-effective environment for manufacturing businesses in the GCC, which is up to 41% lower.
Moreover, efforts are underway to upskill the country’s talent pool to ensure it is future-proofed and ready to meet the needs of the future. Governments and industry have a key role to play in ensuring the workforce is skilled and ready for the Fourth Industrial Revolution. Collaborations are a key part of the strategy for readiness. In Bahrain, BFG is collaborating with Bahrain EDB and Tamkeen on a five-year program to train engineers.
“We want to encourage our very young population in the GCC to have high-calibre, high-paying jobs, and we want to change the economics,” Dr. Aljishi explains.
Why skills building is the answer
In 2023, The Institute for Management Development’s World Competitiveness Ranking placed Bahrain 1st globally for qualified engineers. This can be attributed to the supportive education.
Bahrain’s largest public university offers an M.Sc. in Artificial Intelligence Systems. The master’s program focuses on AI systems, tech innovations, AI management and economic and legal frameworks and has been designed to make use of AI in engineering and non-engineering 4th IR and ICT applications.
Cultivating a workforce that is knowledgeable about cloud computing is also important in supporting the development of Industry 4.0. Cloud computing provides the infrastructure and platform for storing, processing, and analysing the large amounts of data generated by IoT devices during the manufacturing process. As well as offering training in cloud technology, the University of Bahrain (UOB) is collaborating with Amazon Web Services (AWS) Educate Cloud Degree initiative to offer a bachelor’s degree in cloud computing, a first in the Middle East.
Tamkeen has also renewed its collaboration with AWS to support Cloud Innovation Centres at both UOB and Bahrain Polytechnic. The centres have already trained more than 100 students in developing innovative solutions for challenges regularly encountered by public-sector companies – which have resulted in the development of 34 prototypes.
More widely, 38% of university student enrollments are for STEM (Science, Technology, Engineering, and Mathematics) programs. This compares favourably with countries such as the UK and France where only 26 and 23 percent of graduates come from STEM courses, respectively. Beyond STEM enrollment, Bahrain is also ranked highly for internet inclusivity in The Economist Impact’s Inclusive Internet Index 2022, performing well in national female e-inclusion policies, female digital skills training and STEM education, open data policies, and privacy regulations.
To fully realise the potential of Industry 4.0, countries must develop detailed strategies that focus on advanced technological capabilities. By supporting collaboration, investing in training and skills development, and providing a supportive regulatory environment, nations such as Bahrain will see further investment in digital and technological products, stronger industrial infrastructure and local value chains that are fit for the future.