Oil
Bahrain continues to diversify its economy away from its traditional dependence on oil. Currently petroleum revenues account for two-thirds of government revenue and export earnings. The Ministry of Oil is led by HE Shaikh Isa bin Ali Al-Khalifa.
Strategic Persian Gulf location
HE Sheikh Isa bin Ali Al-Khalifa, Minister of Oil
The Awali field was the first oilfield to be developed in the Persian Gulf, discovered in 1932. Bahrain has 125 million barrels of onshore proven oil reserves, all located in this oilfield. Currently Awali produces around 35,000 bbl/d of crude oil.
Bahrain is also exploring potential offshore oil reserves in the Gulf of Bahrain. Since 2001 both Petronas of Malaysia and ChevronTexaco have been exploring concessions here. More recently EnCana Corporation – headquartered in Calgary, Canada – has also begun offshore exploration in Bahraini territory.
Bahrain exports refined petroleum products rather than crude oil. The nation’s refinery, Sitra, is located south of the capital Manama. Built in 1936, it has been modernized several times and exports most of its production to India and the Far East.
Bahrain has natural gas reserves of around 3.25 trillion cubic feet (Tcf). The country produced 327 billion cubic feet (Bcf) of natural gas in 2002, all of which was used for domestic consumption.
Aluminium Bahrain (Alba)
“Local group developing world’s biggest aluminium smelter.”
With a population of less than a million, Bahrain seems set to become home to the biggest aluminium smelter in the world.
It all began in the 1960s when Bahrain, seeking to diversify its economy away from its heavy dependence on oil revenues, began to look into alternatives that would provide valuable export earnings, develop the country’s resources and create training and employment opportunities for its people. Since Bahrain was strategically positioned between the sources of the raw materials from which aluminium is made and the growing markets for primary aluminium in Asia, Europe and the Americas, as well as having a plentiful supply of gas to fuel the power-hungry process of aluminium production, the government decided to create Aluminium Bahrain (Alba) in 1971. Alba is owned by the Government of Bahrain (77 percent), Saudi-based SABIC Industrial Investments group (20 percent) and Germany-based Breton Investments (3 percent).
Today, following unprecedented expansion, Alba produces over 520,000 tons of aluminium per year and contributes more than USD 200 billion a year to the national economy. It operates four reduction lines with a total of 1,048 cells, a power complex with a total generating capacity of 1,504MW, a carbon anode department that produces some 457,000 anodes a year, a calcining plant that can produce as much as 450,000 tons of calcined petroleum coke per year, a dedicated marine terminal and a sophisticated metallurgy department.
And that is only the beginning. Two years ago, Alba began a USD 1.7 billion expansion that includes the addition of a fifth pot line, power plant, carbon plant and cast house developments. When the project is completed, the plant’s production capacity will increase to 827,000 tons per year to make Alba the largest aluminium smelter in the world outside Eastern Europe. Even with the addition of the fifth production line, Alba’s brisk expansion pace is not likely to slow down and plans for a sixth pot line are already being studied. The sixth line would bump plant capacity to well over a million tons per year, potentially making Alba the largest smelter anywhere in the world.
The USD 1 billion engineering, procurement, construction and management contract for the fifth line expansion project was awarded to Bechtel in July 2002, and since then Alstom Powers has been appointed the engineering, procurement and construction contractor for the power-station portion of the project. In fact, with construction now in full swing, the first cell of the new fifth line is expected to produce its first metal early 2005.
Having achieved the Environmental Management System standard ISO 14001 in 2000, Alba has invested over USD 350 million in environmental protection measures since 1987, and in 2000 Alba became one of only 12 companies in the world to earn the Millennium Business Award for Environmental Achievement presented by the United Nations Environment Programme in conjunction with the International Chamber of Commerce. Alba is reducing its unrecycled waste by 10 percent per year while raising productivity by 5 percent per year.
Alba provides superior products and personalized service to customers at home and abroad. A total of 48 percent of Alba’s production is supplied to various companies in Bahrain in the form of liquid metal, billets, ingots and rolling slab. The rest is exported to some 25 counties, with the Far East receiving 20 percent, other Gulf countries and the Middle East consuming 18 percent, Southeast Asia accounting for seven percent and the remaining seven percent going to other countries.
As one of Bahrain’s biggest employers, Alba is committed to setting an example for others to follow. Its corporate strategy identifies safety as a top priority and every effort is being made to ensure that Alba’s safety systems rank among the best in the world. Alba also invests tremendous time, effort and money on improving employee morale, and has constructed hundreds of employee homes, provided scholarship opportunities and training to the families of its workers, and has invested over USD 8 million in a world-class medical facility for its employees and their families.
Alba firmly believes that aluminium is the metal of the future and its latest expansion is testimony to its commitment to maintaining its “preferred supplier status” with its customers.
REAL ESTATE
Bahrain World Trade Center
Claire Hughes, Associate Director DTZ
A new era in the development of the Kingdom of Bahrain is now underway and is soon to be complimented by the introduction of the Bahrain World Trade Center (BWTC).
The development which will be hallmarked by the creation of two imposing 50-storey office buildings, internal & external refurbishment of the existing Sheraton Hotel and creation of 1,700 car parking spaces is due to complete in the summer of 2006. Central to the success of the development is the re-branding and extension of the existing Bahrain Commercial Complex shopping mall to almost 30,000m2. The new mall will offer 150 additional luxury brand boutiques and high end food to further strengthen the development’s reputation as Bahrain’s most exclusive retail location.
In line with proposals for the development of the Bahrain World Trade Center to utilize ‘fast track’ construction methods, the twin office towers are already taking shape with their foundations now complete. DTZ Bahrain, International Property Advisers advising on the project, will be letting and managing the development.
Plans for the BWTC will make it more than just an office building; it is set to become Bahrain’s most prestigious address, offering tenants and visitors a complete business environment incorporating extensive facilities to develop and enhance trade opportunities, as well as providing technically sophisticated commercial services, meeting rooms and conference facilities. Traditionally World Trade Centers the world over have a strong profile, strengthening business investment and relationships and enhancing the commercial environment of the cities in which they are situated. Through the World Trade Center Association BWTC users will have access to 750,000 companies across 300 global World Trade Centers.
DTZ is working towards the success of the Bahrain World Trade Center by engaging an experienced World Trade Center Manager, former CEO of the World Trade Center, Amsterdam, to consult on the project and provide advice on how to maximize on the Center’s potential for the Kingdom. DTZ is also consulting with Government Ministries and key figures within Bahrain’s business community to ensure that the BWTC provides the business facilities required to help stimulate growth of indigenous companies as well as attracting international investment and trade opportunities.
Claire Hughes, Associate Director of DTZ, commented, “We are proud to be moving on with this project at an impressive pace. The Bahrain World Trade Center will be a showcase for the Kingdom of Bahrain and for the region, reinforcing its commercial strengths and enhancing its position as a major commercial hub for trade and finance in the Middle East and the global market place.”
The 50-storey twin tower office building will be the tallest building in Bahrain standing at more 262 yards in height and will offer 68 tenantable office floors with business, leisure and health facilities.
DTZ is a leading global real estate services company with over 8,000 staff operating from 195 offices throughout 46 different countries worldwide. They can be contacted at their Bahrain office on +973 17540330 and more details of the BWTC can be found by logging on to www.bahrainwtc.com
