Bahraini officials say the opening of the new building materials terminal in Mina Salman port is both timely and appropriate considering the construction boom in the country.
"We have long suffered from a scarcity of building materials," said Hassan Kamal, chairman of the board of directors for Iqarat Bahrain. "Dedicating Mina Salman to [building material] imports represents a major step forward that will serve the interests of the real estate and construction sector."
The new terminal sent its first shipment of building materials, 9,836 metric tons of coke fuel, to Mina Saqr in the United Arab Emirates, on January 11, 2012.
Kamal said he expects the price of building materials to drop by 5-10% within three months of the terminal's opening, adding that cement, sand, and concrete will be most affected by the price decline.
Real estate experts and construction contractors said the new terminal will contribute to developing Bahrain's maritime transportation and logistical services sectors, and help avert future supply and demand crises.
"[The new terminal] is a major step in the right direction towards resolving the crises of the real estate sector," said Nasser al-Ahli, president of the Bahrain Realtors Society.
Al-Ahli said he expects the new terminal will lower building material costs and increase the quantity of imported materials by 40% to 50%, as well as increase storage capacity, ensure the materials' usability and facilitate their transport and distribution.
The new terminal will boost cement and ceramic supplies in Bahrain, he said, estimating that cement supplies will rise from 10,000 to 25,000 tons per day and ceramic supplies will rise from 6,000 to 10,000 units in coming months.
Other officials echoed al-Ahli's sentiment, noting the terminal has great potential to lower costs and boost Bahrain's construction sector.
"The new terminal, with its ability to accommodate larger vessels, will facilitate all matters relating to the import of construction materials, particularly cement, the most critical of all building materials," Samir Nass, chairman of the building and construction committee for the Bahrain Chamber of Commerce and Industry, told Al-Shorfa.
If the terminal proves successful, it will be a more competitive, less costly option, Nass said. He said he expects the new terminal to contribute to advancing the building materials market and increasing the availability of most materials needed by the construction sector in Bahrain.
In the past, Bahrain imported building materials from neighbouring countries on small ships and barges, leading to shortages in supplies because these small vehicles could not accommodate the recent influx of construction projects.
"The increase in giant construction projects in Bahrain led to a rise in the cost of construction materials due to shortages in local supply and production," Nass said.
Nass said he is optimistic the new terminal project will maintain rates and import costs at competitive levels, thereby reducing the prices of construction materials.
Mina Salman is strategically located near Bahrain's major transit hubs, Bahrain International Airport, the King Fahd Causeway, which connects the country with Saudi Arabia, and the new Khalifa Port.
The General Organization of Sea Ports in Bahrain continues to study additional plans to continue developing Mina Salman and provide additional facilities for handling and storing building materials.
"The project represents a strategic move by Bahrain's logistic services and the construction sector to provide advanced, effective, and competitive services in accordance with international standards," Hassan al-Majed, director-general of the ports organisation, said in a February 16th press statement.
Bahrain's Salman port opened in 1967, making it the first and oldest port of its kind in the Gulf region. It was replaced by the Khalifa Port, which opened in 2009.
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READER COMMENTS
خطاب
2012-6-18
The maritime sector has not witnessed any development so far compared to the world countries due to the lack of State control and good people among those who are responsible for bringing maritime transportation lines under the name of investments. Unfortunately, we have witnessed a lot of accidents due to the lack of means of transport which are suitable for human use. In fact, a lot of ships in the Arab countries are already outdated and forbidden at the international level. This means that the International Ship Control does not grant them the right to sail in their waters. Many accidents have taken place and maybe the most famous one has been the one that occurred in the maritime line between Egypt and the KSA. This accident has left a lot of victims because of neglect, allowing the ship owners to escape. Until now, no one has managed to hold them accountable although these ships are supposed to have regular maintenance which is not effective, given that the ships are outdated and maintenance cannot solve all the problems. Indeed, a lot of ships have sunk and most of their passengers have died so that ship owners can save some money by being careless about using security items and the absence of rescue means. Even the developed means of communication which should have been used in emergencies have been absent. The latter has contributed to aggravating the situation more, otherwise such means would have saved a lot of lives. Yet, Allah has done what He wants. Unfortunately, our Government heard only after the occurrence of huge losses. Then it resorted to using more modern and developed ships in order to transport passengers. Although they are not that developed, they are considered as more modern and safer than the previous ships. In fact, we hope that the maritime sector will develop. We also hope that the Government will rely on the appropriate safety means in order to maintain the safety of its people.
نوري العلا
2012-4-3
The global and economic crises as well as the depletion of the oil resources will have their risks and their negative repercussions in the near future over Bahrain and all the Gulf states. It is known by its dependence on oil wealth and the neglect of other sectors which depend for their needs on the world market which exported all types of goods from it. Bahrain does not have any industry or agriculture that it can depend on. It must take into account such things in order to secure the future of this country which has one of the strongest economies in the world today and is among the first countries in the field strength of the economy. How long will this economy witness all that sparkle? How long can they keep relying on the natural resources only? The origin of the economy and its success, I believe, is to secure the future. I do not see that such a view or thinking exists in Bahrain. Also, the Bahraini economy has suffered from some decline in 2011, especially with the events in Bahrain that caused destabilization of the security and stability in it which is still ongoing and has affected the growth of investment. It also affected the number of tourists who used to flock to the Kingdom of Bahrain compared to the years that preceded these events.
كمال عطيه
2012-4-3
I think that the Bahraini economy depends heavily on oil resources and this situation applies to all the countries of the Gulf in general in spite of knowing that the Kingdom of Bahrain enjoys the economic powerhouse that made it reach advanced ranks among the most countries experiencing development in their economies. However, I do not think that the strength of this economy continues with oil and its derivatives alone. It will continue because the world is witnessing development in many sectors and opening investments and projects in the sectors of tourism, agriculture and industry to be additional tributaries that can be relied on to support the economy of these countries that are moving in this direction. The Bahraini economy is in dire need of diversity in imports and places for all that would better serve the promotion of the economy of this country.
داود جودي
2012-3-28
The economy in Bahrain depends on the amount of oil it has, even though little, but its high prices help use it as an economic resource, because oil is one of Bahrain’s essentials. It permanently increases for the benefit of Bahrain, which always seeks to access all fields, especially economy, because it relies on diversifying its income ratios, stimulates economic growth and depends on foreign investment. At the same time, it always seeks the best of things by diversifying the oil economy and solving the problem of unemployment among the citizens. Bahrain has an important strategic dimension for the United States and the world in particular. On the one hand, Bahrain is located on a small island within the Gulf region, where two-thirds of the world's oil reserves exist, and it occupies a strategic location opposite Iran and this ensures a secure passage for oil supplies from the Gulf to global markets. On the other hand, the delicate sectarian balance in the kingdom between the Shiite majority and Sunni minority raises concern. Bahrain has a high economic growth rate because it is always on the rise. This enables it to overcome crises. Bahrain, unlike other oil rich Gulf countries, gets its most important financial resources from tourism, trade and financial transactions. It is a major tourist destination for all Gulf people, especially when it comes to night spots, cinema, restaurants and hotels.
مصعب عودة
2012-3-24
After the emergence of the political crisis in Bahrain, the GDP growth declined to 1.5% compared to 2% in 2011. However, the Economic Development Board of Bahrain expects that Bahrain's economy would improve significantly and that the growth of the real GDP would jump to more than 5% in 2012 and 5.7% in 2013, supported by the plans of Bahrain to increase oil production through Tatwir Oil Co. as well as the expected improvement of the performance of the tourism and service sectors, and financial sectors. Furthermore, the plans of the Gulf States to inject financial support amounting to $10 billion into Bahrain's economy over the next decade would constitute a significant contribution that would support the Bahraini economy. One of the methods adopted by the government to address the economic slowdown in Bahrain is to increase public spending. Hence, the Bahraini Government has recently approved an additional appropriation to increase expenditures in the general budget of about 390 million dinars to cover the increase in the salaries of the low-level jobs. The government also planned to cover allowances for the improvement of living conditions, which would raise the average salaries of Bahrainis in the lower-level jobs for more than BD 400 per month, giving preference to Bahrainis over the rest of the GCC lower-level employees. Bahrain has recently approved raising the ceiling of issuance of sovereign bonds from 2.5 billion to 3.5 billion dinars. Bahrain, despite all the negative factors caused by the political crisis, managed to achieve growth rates in 2011 slightly higher than the inflation rates.
رعد منصور
2012-3-22
The Kingdom of Bahrain, being one of the Gulf countries, is economically good compared to other Arab countries. I see that the level of income in Bahrain is good; and most of the people live above the poverty line and have the capability of establishing a good life. A lot of people envy the people of Bahrain their bounty, but look at what is happening lately in Bahrain, such as riot incidents and oppositions to the regime. I think we all know the reason behind this; it is not poverty but rather dirty sectarianism which some people try to provoke. Iran is blowing fire, providing those who engage in such acts with all means and applauding them in order to provoke sedition among Shiites and Sunnis in Bahrain, God forbid. We encourage the Bahraini people to pay attention to these malignant schemes orchestrated by Iran, focus on the interests of their homeland, protect their country from destruction and work on strengthening their economy.
احمد راتب
2012-3-19
Investment policies and legislation set by the government to attract investments, including the facilities and investment incentives made Bahrain the focus of attention of investors from countries and other companies, which increased the recovery of the Bahraini economy, and which reflected positively on the lives of the people, and the economy has the strength and rigidity that cannot be shaken by the winds of economic change, whatsoever. In addition, Bahrain is preparing curricula and studies in order to combat unemployment in the country for good as well as working to raise the wage levels for workers in various industries and improve the quality of production services to allow the employees for innovation and excellence, which is in the interest of the development of the Bahraini economy towards better ways, and to support working experiences in the field of development and innovation that will have a significant impact on progress in the field of economic development in the country. Today, Bahrain is considered one of the most developed countries in the world in terms of human development and is at the forefront of Arab countries in attracting foreign investment. And this excellence is the result of the wise policy of the Government of Bahrain in the field of economic and financial liberalization and following the way of freedom from backward factors that were followed in the past in the management of the country's economy, giving it a strong economic base in the region.
شريف صباح
2012-3-19
Bahrain's economy exceeds most of the economies of the Gulf States due to its strength, stability and renewal on an ongoing basis. It has the integration, which almost covers all sectors in Bahrain, making the Bahraini citizen enjoy a life of stability and prosperity. As the Kingdom of Bahrain gives a particular importance to the human component, it relies on its people in all economic activities by raising the experience and qualifications in the economic sphere in order to establish a strong economic base in the country. This is what threatens Bahrain's economy as experienced by many countries and even the Gulf, and the economic reality enjoyed by Bahrain for the time being is the harvest of fruits that were planted by development factors in various investments in the past years because of the good reputation of the country among the world countries that made many investors trust them.
غيث
2012-3-17
The economic policy in Bahrain, as well as its oil, financial, tourist and marine riches in the state, qualify it to be one of the most important and strongest world economies, if they continue advancing away from the political and economic crises and fluctuations.
همام مفيد
2012-3-17
Bahrain possesses massive economic, oil, marine and financial power that plays a key role in maintaining the economic balance of the Arab Gulf Region, despite its small population. It is the first Gulf state in terms of economic progress, as acknowledged by the UN Economic and Social Committee for Arabs in Asia in 2006. Bahrain also ranked the first among the Arab and Gulf States as to economic freedom, according to the Economic Freedom Index in 2006. It also occupied the twenty-fifth position internationally, according to the international classification. Bahrain is a strong financial and banking power, as it represents the main center for the banks in the Gulf Region and the Middle East. It is also ranked second to Switzerland in terms of the banking services, and it is an important center and economic and financial player in accelerating the services between the Gulf States. The Bahraini economy remains the highest in the Gulf region because of the successful economic policies that were adopted by the Bahraini government, which depends on rationing the use of Bahraini oil as well as encouraging the foreign investment and privatization policy that started after 2005, according to the bilateral economic agreements with the USA. It is worth noting that Bahrain was the first among its Gulf neighbors in adopting such agreements, which included privatization of the main public facilities. This policy means that the government will lose its control over the economy little by little to the benefit of the private sector.
ياسين صادق
2012-3-16
By Allah, from my personal view, I think that the Bahrain's economy is very robust because this country has a lot of good things. It has petroleum as well as other encouraging things for the economy of Bahrain to be always in good condition. It does not suffer from poverty or from the presence of a collapsed economy. It is true that what was experienced by Bahrain, including other conditions, had contributed in the relapse of the economy of Bahrain a little and its collapse. After that, the prospective observers believe that the economy of Bahrain will make a quantum leap in rising significantly and achieving great successes and benefits. Perhaps what postponed this matter is what has recently happened in Bahrain and this is a normal issue. However, in every country where there is chaos and a lack of stability, the economic situation is affected in a direct way because the economy relies on contracts, agreements and investments. All of these things could not exist without security and political stability in any country that wants to provide such important things in order to revive and improve the economy. After Bahrain has regained stability, I think that the coming phase with the return of investments to Bahrain and the return to exporting petroleum in a natural way as well as the different governmental trend now, Bahrain will achieve this year and in the next year great successes, and the economy of Bahrain will have another concern in the region.
هارون عبيد
2012-3-16
The Bahraini economy is witnessing a worsening situation. It is not at the required level, which the sons of the Bahraini people aspire to, and it is very necessary for the government to improve the economic situation of the State of Bahrain so that the Bahraini citizens will witness complete and comprehensive changes in all walks of life. There is a lot of degradation and failure as well as neglect by the government. All the sides and parties concerned with the economy of the country should play a larger and more comprehensive role at a large scale and also become the cause for improving the economic situation of the citizens. They should eliminate all the negative aspects and publish all the positive aspects which will improve the situation of the Bahraini economy because the improvement of the economy has a very big role in the success of the State of Bahrain. The people would live very comfortably and they would witness the provision of all the services that they have waited for so long. Thus, it is important that the government work on opening new horizons and make every effort to support and expand the economy of the State of Bahrain. It needs a lot of work and cooperation with the other Arab countries so that there would be an exchange of benefits and interests that would improve its position. What we wish for all the Arab countries is that their economic situation would be the best possible. Thus, the nation will have a better role because the economy is playing a very big role in the stages of evolution of the Arab countries and improving their life conditions, which are currently suffering from deterioration. For this reason, we hope that a lot of efforts would be made in order to progress and prosper in an era that witnessed a lot of difficult and tragic times. All that we wish is to change the situation for the better.
غاب مراد
2012-3-16
We can say that the Bahraini economy represents a good model for the growing economy, if its development is planned scientifically, and if the development plans are implemented and if the development that modifies the results in reality occurs positively.
Sai
2012-3-16
The opinions differ concerning the Bahraini economy, with one opinion expecting the rise of its growth rates and another opinion expecting the decrease of its growth rates, due to elements of instability to which the country has been exposed recently, and as a reaction to the Arab Spring’s impact on the region. However, the progress of the Bahraini economy over the neighboring countries’ economies is a great tangible reality. This can be attributed to the fact that Bahrain’s government wanted to achieve economic diversity, so as to reduce the dependence on Bahraini oil that decreases year after year, as well as encouraging foreign investment. We can describe the Bahraini economy as a temporary economy that has an organized structure and has distinctive communications and transportation infrastructure. There are also many international companies that work in the Arab Gulf countries and have their headquarters in Bahrain. All these factors and others account for the interest in the Bahraini economy, where fuel and the natural gas, the two important natural resources, and nearly the sole resources in Bahrain, control the economy and contribute to about 60% of the revenues. Bahrain was the first of the Arab Gulf countries that discovered oil, but due to the limited reserves, Bahrain started in the last decade to diversify the economy and fixed its production of oil at 40000 barrels per day, and it is expected that the reserves could last for 10 to 15 years to come.
سلام خليل
2012-3-15
Bahrain is considered an important financial and economic center. It is the main focus of the banks in the Arabian Gulf and in the Middle East. It is also considered a Financial City, like Frankfurt and Singapore, especially since it contains the Bahrain Financial Harbor, which hosts a lot of branches of international banks, in addition to the various financial complexes which are deployed all over the country. Bahrain is the second banking country after Switzerland, wherein there are a lot of banks, namely Arcapita Bank and Al-Shamil Bank. In fact, this country witnesses a flight of capital abroad, and this threatens its status as a financial center in the region and puts pressure on its currency. Yet, according to analysts, Bahrain will not likely face a currency crisis at present, particularly with the possible intervention of Saudi Arabia and the Gulf Cooperation Council. In fact, Bahrain, which contains an Islamic finance industry of $ 66 billion, has faced a lot of decreases from the Credit Rating Agencies since the outbreak of protests in February, leading to the rise in insurance cost on its sovereign debts to its highest level in twenty months. Thus, if the political crisis lasts, long-term investors may also start thinking about converting their money, which might strongly affect the development of Bahrain as a financial center where the claims of foreign banks amount to about 92% of the gross domestic product. But, what keeps hope alive is that Bahrain has sources of foreign reserves to support the currency. Besides, even with the pressure, it is likely that Saudi Arabia and the Cooperation Council will intervene to ease the pressure, through granting further financial assistance. It is also expected that Bahrain will receive ten billion dollars from its neighbors in the Gulf for the development of housing and infrastructure projects over ten years.
نزار صباح
2012-3-14
The unstable security situation and protests witnessed by the Kingdom of Bahrain have clearly affected the country’s economy. The statistics confirm a relative decline in the performance of Bahrain's economy. It is suffering from enormous problems including the decline in the rate of growth, as well as the decline of the order of the country in many international standards, starting from the level of the incoming international investments and the flight of capitalists, which threaten its status as a financial center in the region. The abolition of hosting the International Formula One Motor Racing Championship had been achieving economic benefits for several sectors such as transport sector and hotels. However, Bahrain's economic success may be unattainable in the case of the continuation of anti-government protests. It must also be relying on political reforms and active participation, otherwise, the tendency will be directed to asking for the assistance of the Gulf States in order to achieve stability.
عبدالخالق ناصرعيسى
2012-3-14
Bahrain's economy is among the economies that are less dependent on oil among the economies of the Gulf countries, where the government of Bahrain worked on the diversification of the national economy resources by investing in the key industries such as the aluminum smelting industry and complementary industries, petrochemicals and ship maintenance. It has also developed a regulatory framework aimed at developing Bahrain as an international financial and commercial center. One of the main sectors upon which the Bahraini economy relies is the banking sector, as there are a lot of foreign and international banks in the Kingdom of Bahrain, making the country an important financial center in the Gulf region. The opening of the King Fahd Causeway also led to the promotion of trade and tourism movement in Bahrain, in which the tourism sector is the fastest growing. This is in addition to an increase of the government spending and the attention to the human element, the direction of Bahrain to the enormous privatization programs of filtering the main governmental properties like utilities, banks, financial services, telecommunications, and selling them to the private sector. The growth, success, prosperity, and solid economic fundamentals and foundations of the economy achieved by Bahrain enabled it to maintain its balance and stability despite the challenges that it confronted and the many crises that occurred in the world, as well as the flexible economic policy of the Government of Bahrain, which protected the Bahraini economy from a lot of risk and maintained its leading position internationally. However, the economy of the Kingdom of Bahrain has the most freedom in the Middle East.
اجمد سلطان
2012-3-13
It is a modern and free economy, despite the protests that have been taking place in Bahrain since last year, 2011. Fortunately, the protests did not have much noticeable impact on economic growth, compared to the other neighboring and other foreign countries. The Bahraini government wants to diversify the economy to reduce the dependence on oil in Bahrain, which is decreasing every year. It also encourages foreign investment in the country. Bahrain's economy is described as a modern economy. It is well organized with a distinguished ability to communicate and a good transportation infrastructure, in addition to the presence of many international companies operating in the Gulf Arab states whose headquarters exist in Bahrain. Indeed, Bahrain opted for economic freedom, because of the need to diversify the economy, which should not have greater reliance on oil. In fact, these reserves are about to dry up, as it is a country of limited oil wealth. Thus, this nation resorted to other industries, including the heavy industries. It also expanded its economy with banking and tourism. The economy of Bahrain is growing, compared to the rest of the Arab world at large. Bahrain has relied on the wealth of oil and gas in order to develop other areas and build a prosperous economy which does not depend on this important resource, oil. This Kingdom is the main banking hub in the Arabian Gulf and a center for Islamic finance, which attracted investors, thanks to its strong regulatory framework for the industry, according to the International Monetary Fund, the assessment of the financial system’s stability of the financial regulatory environment in Bahrain. The government has used the limited oil revenues to build a modern infrastructure in transportation and communications. Bahrain is a regional financial and business center.