A bridge and ever closer financial ties with Saudi

Bahrain's port operator, APM Terminals, expects to benefit from increased production of petrochemicals in Saudi Arabia's eastern provinces. Above, APM Terminal's facility in Bahrain. Razan Alzayani / Show more

Businessmen say Bahrain is becoming ever closer to neighbouring Saudi Arabia economically, even as plans for a Gulf union meet with loud opposition.

Last weekend there were demonstrations for and against Saudi Arabia's plans for a closer union among member nations of the GCC. But economic ties are strengthening.

Last year, the GCC pledged US$10 billion (Dh36.73bn) each to Bahrain and Oman over a 10-year period to help shore up their economies.

Bahrain is starting to feel that investment filtering through. Among the projects that the kingdom's government has restarted is a road link connecting the King Fahd Causeway with Bahrain Bay, a new business and hotel district. The King Fahd Causeway links Bahrain and Saudi Arabia.

Bahrain's port operator, APM Terminals, also expects to benefit from increased production of petrochemicals in Saudi Arabia's eastern provinces.

"Tapping into the eastern provinces and the Saudi market is where we see our future," said Marco Neelsen, the chief executive of APM Terminals in Bahrain.

The Middle East was "at the tipping point" and would expect a marked change in its trade dynamics within the next one or two years, he said.

Because the region imports more goods than it exports, large numbers of containers are shipped empty out of Saudi Arabia - making it cheap to process exports in Bahrain as demand increases.

"Exports of petrochemicals will really change trade in the entire region," Mr Neelsen said.

Despite a reduction in the number of European bankers based in Bahrain, Saudi Arabia still presented compelling opportunities, said Jean-Christophe Durand, the regional chief executive of BNP Paribas. "We can access and have very good access to Saudi Arabia, which is very important when you want to grow in this region. A big part of the economy is across the bridge."

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