In spite of 23 apparel units shutting down in past three years, including the recent closure of Gulf Baraka Garments and French Garments, Bahrain's garment sector is ready to make a comeback.
According to Harinder Lamba, Vice Chairman, Bahrain Chamber of Commerce and Industry (BCCI)'s Garment and Textiles Committee, advantages posed by Bahrain's Free Trade Agreement (FTA) with the US could greatly benefit the remaining clothing units in future.
About 21 facilities had closed before the FTA was implemented, with the industry being in bad shape. Companies did not know when the agreement would be signed.
With the FTA being effective currently, trade of synthetic materials like nylon blends and polyester offers scope to make Bahrain more competitive than countries like China which bear higher import taxes on synthetics.
Country also enjoys the advantages of good logistics, expatriate labour and excellent infrastructure.