ABSTRACT
This chapter provides an economic analysis of three major industries in Bahrain: aluminum, shipbuilding and petrochemicals. While the analysis is general, it focuses on three main issues: first, the contribution of such industries to reducing the economy's reliance on oil, second, the long-run viability of these industries in view of the challenges and difficulties that face them and the prospects for cooperation among Gulf countries in general and the Gulf Cooperation Council (GCC) in particular in the field of industrial development. The availability of substantial and underutilized natural gas resources has been especially attractive to energy-intensive industries such as aluminum and petrochemicals. The first major industry to be developed in Bahrain was Aluminum Bahrain (ALBA). The second major joint venture and industrial enterprise established in Bahrain was the Arab Shipbuilding and Repair Yard (ASRY) which began operation in November 1977. The main advantage is, of course, the availability of cheap natural gas in large quantities, aluminum being an energy-intensive industry.
