Bahrain to Launch HQ Industrial Incubator in September

ashen@newsofbahrain.com 

UNIDO, Arab League Back Bahrain’s Industrial and Innovation Vision

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Bahrain will launch a state-of-the-art industrial incubator in September, known as HQ Industrial, aimed at transforming innovation into industrial-scale production, Abdullah bin Adel Fakhro, Minister of Industry and Commerce, announced at the 6th World Entrepreneurs Investment Forum (WEIF) held in Bahrain. 

The new facility will operate as an industrial launch pad, providing a single, integrated ecosystem that supports startups and small and medium-sized enterprises (SMEs) from research and development through prototyping, production, and final sale.

“This is not a traditional incubator,” Fakhro said. “It is designed to close the gap between innovation and industrial production.”

He added that Bahrain is positioning itself not just as a gateway to the region, but as the best destination for long-term business growth, supported by competitive costs, a skilled workforce, strong logistics infrastructure, and access to regional and global markets.

The announcement came during the forum, held under the patronage of His Royal Highness Prince Salman bin Hamad Al Khalifa, Crown Prince and Prime Minister, and attended by leaders, investors, innovators, and entrepreneurs from 86 countries.

Addressing participants, Fakhro said the global economy is undergoing profound transformation due to geopolitical shifts, climate challenges, demographic changes, and rapid technological advancement. Traditional growth models, he noted, are under pressure, making entrepreneurship central to economic resilience.

“In today’s world, competitiveness is no longer defined by size alone, but by speed, adaptability, and the ability to scale ideas into impact,” he said.

He highlighted Bahrain’s long-standing economic strategy based on openness, diversification, and private sector leadership, noting that non-oil sectors now contribute more than 83% of the Kingdom’s GDP, while SMEs account for over 93% of registered businesses.

Fakhro said Bahrain’s ambition extends beyond creating startups to building scalable companies and competitive industries capable of operating regionally and globally from the Kingdom. To support this, the government has invested heavily in strong regulatory frameworks, advanced digital infrastructure, a globally competitive workforce, and policies designed for long-term value creation.

On financing, the minister outlined several initiatives aimed at easing access to capital, including the SME Development Fund, an advanced credit scoring platform, monthly startup pitch competitions, and legislation allowing entrepreneurs to pledge non-traditional assets as collateral.

He also highlighted Bahrain’s market access advantages, noting that businesses operating from the Kingdom can reach a regional market of over 25 million consumers, supported by more than 24 free trade agreements, duty-free access, and one of the lowest setup and operational cost environments in the region.

Speaking at the forum, Gerd Müller, Director-General of the United Nations Industrial Development Organization (UNIDO), said the world faces growing economic and environmental challenges, with developing countries being the hardest hit.

“We know what to do and how to do it. What we need now is action,” Müller said, calling on entrepreneurs—particularly the younger generation—to drive sustainable industrial solutions.

He praised Bahrain’s industrial performance, citing Aluminium Bahrain (ALBA) as an example, and stressed that Arab and African economies stand to benefit significantly from increased investment, innovation, and financing.

Müller also called for a new global green industrial deal, focusing on sustainable industrialization, clean energy, decarbonization, green hydrogen, circular economy practices, and climate action, noting that global temperatures reached record levels in 2025.

Meanwhile, HE Dr Ahmed Aboul Gheit, Secretary-General of the League of Arab States, expressed appreciation to Bahrain’s leadership for hosting the forum and praised the patronage of the Crown Prince.

He said entrepreneurship and innovation have become key drivers of economic growth, job creation, and sustainable development across the Arab region.

“The ability to achieve sustainable development is closely linked to creating an enabling environment for investment, fostering innovation, and strengthening partnerships between investors and entrepreneurs,” he said.

The World Entrepreneurs Investment Forum serves as a platform where capital meets ideas and policy meets execution, bringing together global stakeholders to promote resilient and inclusive economic growth.