Saudi Arabia, Bahrain launch 2nd phase of industrial integration

25/06/2025 00:45 AST

Saudi Arabia and Bahrain have launched the second phase of their industrial integration initiative, aiming to boost bilateral trade, investment, and cross-border supply chain cooperation.

Announced on the sidelines of the Saudi Industry Forum 2025 in Dhahran, Khalil Ibn Salamah, the Kingdom's deputy minister for industrial affairs, emphasized that the new phase would build on prior successes between the two countries.

This comes amid strengthening economic ties between the countries, with the Saudi Arabia's direct investments in Bahrain reaching SR35 billion ($9.33 billion) in 2023 - representing approximately 20 percent of total foreign investments - and 1,550 Saudi-registered companies operating in the country, as revealed by the Kingdom's Minister of Investment, Khalid Al-Falih, during a business forum earlier this year.

In an official statement marking the latest announcement, the Saudi Ministry of Industry and Mineral Resources stated: "The second phase of industrial integration between the two countries focused on setting specific targets, including enhancing intra-trade in industrial goods, attracting industrial investments."

It added that this will help "integration in the field of industrial infrastructure and supply chain integration," as well as identifying a list of export opportunities for non-oil goods and facilitating procedures for exporters and investors.

The initiative is part of broader efforts under the Gulf Cooperation Council Economic Agreement, which aims to increase the industrial sector's contribution to regional GDP and foster industrial coordination among member states "on an integrated basis," according to the ministry.

The second phase builds on earlier efforts, including the Future Factories Program, which helped shift production in both countries from labor-intensive to advanced manufacturing, along with aligning policies to treat local products as national goods and streamline customs processes.

As part of the second-phase launch, Ibn Salamah inaugurated the Bahraini Investors Services Office in Dammam's Third Industrial City. The event was attended by Bahrain's Minister of Industry and Commerce, Abdullah bin Adel Fakhro.

"The office aims to attract quality industrial investments and provide all industrial investment services to investors," the ministry noted.

Positioned strategically near Bahrain, approximately 130 km away, Dammam's Third Industrial City offers a robust industrial ecosystem.

Spanning 48 million sq. meters, the site features extensive infrastructure including a modern road network, energy and water supply systems, and logistical connectivity through its proximity to King Fahd Port, King Fahd International Airport, and the dry port in the city of SPARK.

The Saudi Industry Forum also highlighted how the new office will offer a "package of services and enablers from the industrial and mining system to facilitate the journey of Bahraini investors," further underscoring both countries' commitment to deepening industrial and economic ties.