Bahrain expands SME manufacturing links in Asia
Strategic partnerships with East and Southeast Asia aim to boost exports, cut costs, and integrate Bahraini firms into global value chains
MANAMA, Bahrain (MNTV) — Bahrain is moving to strengthen the global competitiveness of its micro, small, and medium-sized enterprises through new manufacturing and technology partnerships across the Far East, targeting export growth and deeper integration into international markets.
The Bahrain Small and Medium Enterprises Society announced that binding agreements have been concluded with partners in Shanghai and Taiwan, enabling Bahraini entrepreneurs to access large-scale production facilities, advanced manufacturing technologies, and specialized training programs abroad.
According to Zawya News, the initiative is designed to lower entry barriers that often prevent SMEs from scaling operations locally.
Additional agreements with key Southeast Asian hubs — including Tokyo, Bangkok, Hanoi, and Phnom Penh — are currently under negotiation and are expected to be finalized in 2026.
Officials say the expansion reflects a broader strategy to embed Bahraini SMEs within established global value chains.
Chairman of the Bahrain Small and Medium Enterprises Society MP Ahmed Al Salloom described the move as a turning point for local businesses, noting that access to overseas mass production lines, modern technologies, and high-quality raw materials would significantly enhance competitiveness while reducing cost pressures.
Under the arrangements, participating entrepreneurs will manufacture products using existing industrial infrastructure in partner countries, accelerating time to market and lowering startup and operational expenses.
The agreements also include provisions for technology transfer, capacity building, and skills development to improve productivity and product standards.
Al Salloom said the initiative aligns with Bahrain’s economic diversification objectives, emphasizing that the goal is to enable SMEs to compete regionally and globally rather than remain confined to domestic markets.
He highlighted Southeast Asia’s strong manufacturing ecosystems and longstanding support frameworks for small and medium enterprises as key factors behind the choice of partners.
The partnerships are also expected to open avenues for collaboration in research and development, product design, and branding, helping Bahraini firms transition toward higher value-added business models.
Implementation mechanisms and eligibility criteria for entrepreneurs are expected to be announced in the coming months, with officials anticipating strong participation given that SMEs account for roughly 80 percent of Bahrain’s commercial registrations.
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