Kuwait Finance House, Bahrain (“KFH-Bahrain”) – a leading provider of Islamic commercial and investment banking services – today announced plans for the establishment of a state-of-the-art industrial park in the Kingdom of Bahrain to be known as the KFH Industrial Oasis following a meeting between Mr. Abdulhakeem Alkhayyat, General Manager of KFH-Bahrain and Minister of Industry and Commerce, Dr. Hassan Abdullah Fakhro. The meeting was attended by Mr. Osama Alkhaja, Head of Corporate Finance at KFH-Bahrain and Mr. Nader Al Moayyed, Undersecretary at the Ministry of Industry and Commerce.
The project, a first of its kind in the Kingdom, is aimed driving further economic diversification in the industrial sector, generating greater inward investment and stimulating job creation in Bahrain by capitalising on the ongoing expansion in the industrial sector and fast growing demand for industrial based real-estate projects in Bahrain.
KFH Industrial Oasis will comprise of 155,000 Sqm2 of land to be located within the Bahrain International Investment Park (BIIP), a newly established area located in the Hidd industrial zone, which focuses on the technology, manufacturing and service sectors and has been designed to attract investors with value added activities. BIIP covers over 250 hectares with 25.5km of readily equipped infrastructure such as roads, street lighting, sewage systems, landscaping and desalination systems.
Initial investments to be undertaken by KFH-Bahrain will be approximately US$25 million for the development of the necessary infrastructure, which upon completion will be sublet to potential local and international tenants. Target companies include a broad range of businesses from those in the region to Fortune 500 companies and other international firms engaged in manufacturing and service oriented industries. As per the guidelines of the BIIP, companies should be engaged in areas such as services and knowledge based activities, high technology manufacturing and assembling; light industry; SMEs and industrial processing.
At full capacity, it is expected that the KFH Industrial Oasis will bring in investments upwards of US$200 million into the Bahrain economy and will help to create more than 2,000 industrial and related jobs.
In addition to funding the development of the necessary infrastructure for the establishment of the Industrial Oasis, KFH-Bahrain will further provide access to financing and capital for potential tenants in order to facilitate the development of the industrial zone and provide needed support to start-up companies with compelling business plans and the ability to add value in the local economy.
According to Minister Fakhro, “We welcome this project put forth by KFH-Bahrain in line with the Bank’s ongoing efforts to work closely with the Ministry and the Kingdom of Bahrain to develop innovative new projects aimed at attracting investment, creating jobs and providing overall economic benefits. We encourage greater private sector activities and projects such as these and will continue to provide the necessary support to noteworthy projects in the Kingdom.”
Commenting on the announcement, Mr. Abdulhakeem Alkhayyat, General Manager of KFH-Bahrain, said “We are pleased to join hands with Bahrain International Investment Park to help drive further economic development and growth in the Kingdom of Bahrain. With enormous competitive advantages, Bahrain – and the Hidd area in particular – offer an ideal location for both regional and international industrial companies engaged in highly productive and economically beneficial activities. As a Bank, we are committed to participating in projects that help stimulate economic growth locally and across the region, and we believe that the KFH Industrial Oasis will act as a significant contributor in this regard. We thank the Ministry of Industry and Commerce for its support in the launch of this project, which we fully expect will both support the establishment of local industrial start ups as well as the attraction of major industrial corporations from the world over.
Mr. Osama Alkhaja – Head of Corporate Finance at KFH – Bahrain concluded, “Some of the benefits to be enjoyed by qualified regional and international industrial companies include streamlined registration processes, substantial reductions in capital expenditures for the development of infrastructure and construction as well as significant time savings in establishment and launch of operations.”
Furthermore, KFH Industrial Oasis will offer potential tenants a host of facilities including those aimed at meeting their security, logistics and administrative needs as well as providing for unparalleled access to sea, air and road transportation. The Oasis is ideally positioned with the best possible levels of connectivity and access. It is located only 5 minutes by road to the Bahrain International Airport; the existing seaport of Mina Salman and the new Hidd deepwater port. In addition, there is direct motorway access to Saudi Arabia, the region’s largest market, via the 25km Saudi-Bahraini Causeway.
The project, on which the Bank anticipates breaking ground in early 2006, will be undertaken in two phases. Phase One, which is expected to take some 18 months, will see the development of 11 advanced factories and a four-story office tower. This will be followed by the establishment of an additional seven advanced factories and a six-story office tower in Phase Two of the project, which is to be completed some 18 to 24 months later. Factories will be developed with size and scale ranging from 7,500 Sqm2 to 10,100 Sqm2.
The overall strategy of KFH-Bahrain is to stimulate the market by developing and or participating in investment projects that develop the local region, with a particular emphasis on Bahrain, whilst simultaneously provide compelling opportunities and returns for its investors and stakeholders. This approach helps to strengthen the overall economy and assist the local community in line with the Bank’s stated objectives and mission upon its establishment in Bahrain.
About Kuwait Finance House, Bahrain
Kuwait Finance House, Bahrain (“KFH-Bahrain”) is a leading provider of Islamic commercial and investment banking services. Established in October 2002 as a wholly owned subsidiary of Kuwait Finance House (Kuwait) -- an industry leader for more than 25 years -- KFH-Bahrain specialises in developing and bringing to market the highest quality Shari’a compliant banking and investment products all of which are delivered by a staff of experienced and dedicated professionals with a deep understanding of the market and the customers we serve.
