Bahrain's Minister of Industry and Commerce, Abdulla bin Adel Fakhro, emphasized the program's significance in strengthening the strategic partnership between Bahrain and Saudi Arabia. The Takamul initiative is designed to retain economic value within Bahrain by incentivizing local manufacturing and reducing reliance on imports.
The Takamul initiative is projected to retain BD76 million (approximately $200 million) annually in the local economy by encouraging manufacturers to use domestically produced materials. This program is particularly significant for sectors where products are readily available locally under the Harmonized System (HS) codes, providing a 10% advantage in local government tenders for manufacturers meeting the 75% local content threshold.
Launched as part of the broader Economic Recovery Plan, Takamul aligns with Bahrain’s Industrial Sector Strategy (2022-2026). The strategy focuses on adopting Fourth Industrial Revolution technologies, promoting a circular carbon economy, investing in digital infrastructure, and achieving industrial integration to enhance supply chain efficiency. By benchmarking against regional counterparts, the program ensures competitive standards and practices that benefit both local and international businesses operating in Bahrain.
This initiative is not mandatory but operates on an incentive basis, making it an attractive option for manufacturers. It provides financial and operational advantages, such as eligibility for incentives when purchasing local products, which, in turn, supports local job creation and boosts the sales of local manufacturers.
Bahrain’s approach aims to foster a robust manufacturing sector that can compete on a global scale while maintaining economic benefits within the country. The initiative reflects a broader regional trend towards enhancing local content in industrial activities, aligning with similar strategies in neighboring Gulf Cooperation Council (GCC) countries.
As the Takamul program opens to Saudi companies, it marks a significant step in regional industrial cooperation. The program’s expansion is expected to deepen economic ties between Bahrain and Saudi Arabia, leveraging the strengths of both nations to drive industrial growth and development.