A high-level Bahrain business delegation has arrived in China on a visit organized by the Bahrain Economic Development Board (EDB) aiming to strengthen diplomatic and economic ties between the two countries.

This comes following the official visit of His Majesty King Hamad bin Isa Al Khalifa in September 2013, and two successful business roadshows held in 2014 and 2015.

Bahrain has been invited to participate at the China High Trade Fair by His Excellency Xu Qin, Mayor of Shenzhen, who in September this year visited the Kingdom to meet with Chinese business and to discuss cooperation on a number of sectors of mutual interest to Bahrain and Shenzhen, including financial services, transport and logistics.

The Bahraini delegation consists of senior officials from the Capital Governorate, the EDB, Ministry of Transportation and Telecommunications, Bahrain Chamber of Commerce & Industry (BCCI), Bahrain Mumtalakat Holding Company, Osool and several representatives from the private sector.

In addition to attending several important events in the technology sector, business forums, and a number of meetings with high level officials from Shenzhen and Hong Kong, the delegation will also take part at the China High Tech Fair, the most prominent high-end technology event in China. The Fair, which is organised annually by several Chinese ministries and government agencies, highlights the latest trends in China’s technology sector and plays an important role in the implementation of the national development strategies for China.

Shaikh Hesham bin Abdulrahman Al Khalifa, Capital Governor and Head of Bahrain’s Business Delegation commented:
“High-level visits such as this one between our two countries emphasise the continuous efforts of officials to strengthen bilateral relations and to encourage mutual cooperation, which will in turn be of great benefit to the people of both Bahrain and China. The visit reflects our mutual desire to expand cooperation on all levels. Our long-established bilateral relations are based on strong and solid foundations, and this visit gives us the opportunity to increase the level of cooperation between the cities of Shenzhen and Manama. It also allows us to share experiences and establish a prosperous partnership between Bahrain and China, which will flourish due to the shared strategic visions of our two countries.”

Mr. Khalid Al Rumaihi, Chief Executive of the Bahrain EDB commented:
“This visit to Shenzhen and Hong Kong takes the EDB’s efforts to the next level in terms of attracting Chinese investment and strengthening the partnership between the Bahraini and Chinese business sectors.

“We are particularly excited by the opportunity to be exhibiting at the China High Tech Fair. Bahrain is aiming to operate as the start-up hub for the GCC region, and with more Chinese businesses on board, as one of the world’s fastest growing nations, it will drive robust growth for the tech sector in the GCC.”

The EDB’s prioritises developing and attracting investment to sectors that offer competitive advantages for investors such as Financial Services, ICT, Tourism, Manufacturing, Transportation and Logistics Services and to create high-quality jobs for Bahrainis.

This is the third consecutive year that a Bahrain delegation has visited China and Hong Kong to strengthen economic ties. Last year Bahrain was the guest country of honour at the China International Fair for Investment & Trade, and the delegation visited several of China’s commercial centres, signing a total of 15 agreements. In 2014 the delegation conducted a 10-day visit to China and Hong Kong during which 13 MoUs were signed with Chinese businesses and trade organisations.

Non-oil trade between Bahrain and China was valued at around USD$1.8 million in 2015.  Mechanical and electrical equipment, represent the largest imports to Bahrain, while chemicals were the leading exports to China that same year.

Bahrain’s non-oil sector grew by 3.6% in the second quarter of 2016, a marked acceleration from 2.7% in the first three months of the year, according to the latest Bahrain Economic Quarterly, released today by the Economic Development Board (EDB).

The sector, which accounts for more than 80% of GDP, has demonstrated continued resilience in the face of lower oil prices and considerable global economic volatility. This momentum has been seen across a number of sectors and is strongly underpinned by the ongoing implementation of a $32bn pipeline of strategically significant infrastructure projects in the Kingdom. For instance, the total cumulative value of the active projects financed by the GCC Development Fund has reached nearly USD4billiion, more than tripling in less than a year. Also a number of real estate, transportation, and manufacturing projects, such as ALBA Line 6, are progressing well.

Non-oil growth has been broad based. The fastest growing individual sector during the second quarter of 2016 was Social & Personal Services, a category dominated by private education and health care. It has been consistently one of the most dynamic sectors of the economy in recent years and grew by an annual 9.9% in Q2.

The Financial Services sector has continued to perform well with a 4.0% pace of real growth in Q2. Likewise, the Manufacturing sector expanded by 3.3% in Q2 in a near-tripling of the pace seen in Q1.

Growth across the private sector was also supported by growth in bank credit, with the average annual rate of credit growth during the first half of the year reaching 7.2%, and the cost of credit remaining stable, declining slightly in the course of the first half of the year.

Mr. Khalid Al Rumaihi, Chief Executive of the EDB, commented on the findings of the BEQ report: “The resilience the economy has demonstrated reflects the strength and maturity of the non-oil private sector in Bahrain – we are very pleased to see continued growth even in the face of considerable headwinds.

“In the coming years we expect the GCC economies to move from a model of extensive growth, driven by increased people, land and capital, to productivity-led growth. The large infrastructure investments we are currently seeing and the strength of the non-oil private sector will be important in creating opportunities for investors and ensuring that Bahrain continues to thrive.”

Armacell, a global leader in flexible foam for the equipment insulation market and a leading provider of high performance engineered foams, announced today it is moving forward with plans to build a new manufacturing facility in Bahrain, which will be located at the Bahrain International Investment Park (BIIP). Armacell will produce elastomeric rubber insulation for the heating, ventilation and air conditioning (HVAC) market in the GCC and Africa.

Resilient economic growth and strong demand within the construction sector has driven demand for HVAC products in the region. Bahrain has seen strong growth among businesses looking to service this demand within the Middle East region, possessing the Gulf’s most efficient processing of trade goods with the shortest travel time between seaport, airport and logistics processing zones. Bahrain is also connected to the GCC’s biggest economy, Saudi Arabia, via a 25km causeway.

The Bahrain Economic Development Board (EDB) assisted Armacell throughout their setup and registration process in Bahrain.

H.E. Mr. Zayed R. Al Zayani, Minister of Industry, Commerce and Tourism said: “The Bahraini government has created world class infrastructure greatly benefiting companies such as Armacell, and businesses are increasingly realizing the logistical and economic benefits of locating here. Choosing Bahrain as a location for Armacell’s manufacturing facility is a reflection of investor confidence and testament to our business friendly environment. This is a very exciting project, and we look forward to working closely with Aramcell, as they develop their business model”.

Khalid Al Rumaihi, Chief Executive of the EDB said: “We are proud to see Armacell´s progress in establishing its new manufacturing facility in Bahrain. Specialist manufacturers like Armacell have an important role to play in enabling the growth and diversification of the region’s economy, as well as directly creating jobs. We are delighted to welcome them here and look forward to their continued development and success.”

Neville D’Souza, General Manager, Armacell Middle East Company (AMEC) said: “We are very pleased with the speedy progress we have made in establishing our first manufacturing plant in Bahrain. We are excited to begin our operations and to take advantage of the opportunities within the Gulf market. The EDB has been supporting us from the start in our endeavour.”

Armacell is a world leader in flexible insulation foams for the equipment insulation market and also a leading provider of high performance engineered foams. In 2015, the company, with approximately 2,800 employees and 23 production plants, in 16 countries, generated net sales of 540.2 million Euros.

Armacell operates within two main businesses: advanced insulation; which develops flexible foams for the insulation of technical equipment utilized for the transport energy – such as heating, ventilation & air conditioning (HVAC), heating and plumbing (H&P) in residential and commercial construction; as well as process lines in industries such oil & gas, transportation equipment and acoustics.

High performance engineered foams developed by Armacell, are used in a broad range of end markets including transportation, automotive, wind energy, sports and construction. Armacell’s products significantly contribute to global energy efficiency. For more information, visit www.armacell.com.

Bahrain’s manufacturing sector contributes considerably to the Kingdom’s economy, accounting for over 14.6% of real GDP, having grown by 20% over the past 5 years; it is the second largest contributor to Bahrain’s economy in the non-oil sector.