Food Processing Plant Setup in Bahrain: A Comprehensive Guide (2025)
Bahrain’s food processing industry is growing rapidly, driven by rising consumer demand, government support, and strategic access to the GCC market. Setting up a food processing plant in Bahrain offers cost-effective operations, tax benefits, and strong export potential. This guide provides a detailed roadmap for registering, licensing, and operating a food processing facility in Bahrain, ensuring compliance with food safety laws, industrial zoning regulations, and trade policies.
Why Bahrain is the Ideal Location for a Food Processing Business?
✔ 100% Foreign Ownership – No local partner required.
✔ Zero Corporate Tax – Bahrain does not impose corporate income tax on food businesses.
✔ Fast Business Registration – Company setup in as little as 3-6 weeks.
✔ Strategic GCC Access – Export to Saudi Arabia, UAE, and Kuwait with minimal tariffs.
✔ Government Support – Incentives, grants, and subsidies for agro-food businesses.
Understanding the Business Structure for Food Processing Plants
✔ With Limited Liability Company (WLL) – Ideal for small to medium food production firms.
✔ Foreign Branch Office – For international food manufacturers expanding into Bahrain.
✔ Single Person Company (SPC) – Best for small-scale or artisanal food production.
Step-by-Step Process for Registering a Food Processing Business in Bahrain
Setting up a food processing plant in Bahrain requires a structured approach to comply with industrial regulations, health standards, and licensing requirements. Below is a detailed step-by-step guide to ensure a smooth registration process.
1️⃣ Obtain Security Clearance
Before registering your business, security clearance must be obtained from the Ministry of Industry, Commerce, and Tourism (MOICT). This step involves a background check on the company owners and investors to ensure compliance with Bahrain’s business regulations.
Key Requirements for Security Clearance:
Valid passport copies of all shareholders and directors.
Proof of residence (local or foreign).
Detailed business plan outlining food processing activities.
Initial capital proof (bank statements or financial guarantees).
💬 Processing Time: Security clearance is typically granted within 5 to 10 business days, but may take longer for foreign investors.
2️⃣ Register a Trade Name
Choosing a unique and industry-relevant name for your food processing business is essential. The name must be registered through Bahrain’s Sijilat portal, the official business registration system.
Steps to Register a Trade Name:
Select three name options in order of preference.
Ensure the name is not already registered or trademarked.
The name should reflect your food processing business activities (e.g., “Bahrain Organic Foods LLC”).
Submit the request through the Sijilat portal and wait for approval.
💬 Processing Time: Name approvals generally take 2 to 5 business days.
3️⃣ Secure an Industrial License
An Industrial License is mandatory for food manufacturing and processing activities in Bahrain. This license is issued by the MOICT and ensures that your business complies with manufacturing regulations.
Documents Required for Industrial License:
Approved Trade Name Certificate.
Memorandum of Association (MOA) – Legal document outlining business ownership.
Business Plan & Operational Model – Outlining food production methods, storage, and distribution.
Industrial Land Lease Agreement – If the facility is located in a Bahraini industrial zone.
💬 Processing Time: 7 to 14 business days, depending on the nature of the business.
4️⃣ Choose an Industrial Location
All food processing plants must be established in approved industrial zones to comply with municipal and safety regulations. Bahrain offers multiple industrial areas suitable for food manufacturing and storage.
Best Locations for Food Processing Plants in Bahrain:
| Industrial Zone | Key Features |
|---|---|
| Bahrain International Investment Park (BIIP) | Tax-free business zone, ideal for export-oriented businesses. |
| Hidd Industrial Area | Close to Khalifa Bin Salman Port, perfect for food exports. |
| Bahrain Logistics Zone (BLZ) | Integrated logistics and cold storage facilities. |
| Sitra Industrial Area | Well-developed infrastructure for manufacturing plants. |
💬 Processing Time: Location approvals may take 10 to 20 business days, depending on lease agreements and regulatory approvals.
5️⃣ Obtain Municipal Approvals for Food Processing Activities
Before beginning operations, businesses must secure approvals from local municipal authorities to ensure compliance with food safety, hygiene, and environmental laws.
Municipal Approvals Include:
✔ Food Safety & Hygiene Clearance – Ensuring compliance with Bahrain Food & Drug Authority (BFDA) regulations.
✔ Environmental Impact Assessment (EIA) – Evaluating the plant’s environmental footprint.
✔ Health & Safety Inspection – Ensuring worker safety, sanitation, and air quality in the facility.
✔ Fire Safety & Building Permit – Compliance with Bahrain Civil Defense Authority regulations.
💬 Processing Time: 2 to 4 weeks, depending on inspection schedules and required modifications.
6️⃣ Register for VAT & Tax Compliance
If your food processing business exceeds the mandatory revenue threshold, you must register for VAT (Value Added Tax) with Bahrain’s National Bureau for Revenue (NBR).
VAT Requirements for Food Manufacturers:
✔ 10% VAT on processed and packaged foods.
✔ Basic food staples (fresh produce, dairy, grains) are VAT-exempt.
✔ Proper invoicing & record-keeping required for tax filings.
💬 Processing Time: 5 to 7 business days after submission of required tax documents.
7️⃣ Open a Corporate Bank Account
A corporate bank account is necessary for managing business transactions, supplier payments, and payroll processing. Bahrain has a wide range of local and international banks that offer business banking solutions.
Requirements for Opening a Business Bank Account:
✔ Valid Business Registration Certificate.
✔ MOA & Shareholder Agreements.
✔ Proof of Industrial Land Lease or Office Address.
✔ Initial Capital Deposit as per banking requirements.
💬 Processing Time: 7 to 14 business days, depending on the bank’s internal approval process.
8️⃣ Final Licensing & Commencement of Operations
Once all approvals and registrations are completed, businesses receive final operational clearance from the MOICT and BFDA to begin food production and distribution.
Key Final Steps Before Operations:
✔ HACCP & GMP Certification Compliance Check.
✔ Employee Training on Food Safety Standards.
✔ Packaging & Labeling Compliance with Bahrain’s Food Regulations.
✔ Testing & Quality Control Assessments before market distribution.
💬 Processing Time: 2 to 4 weeks, based on compliance verification by regulatory bodies.
9️⃣ Market Your Food Products in Bahrain & GCC Markets
Once production begins, businesses must focus on distribution, branding, and sales to ensure profitability.
Distribution Channels for Food Products:
✔ Retail Supermarkets & Hypermarkets – Lulu Hypermarket, Carrefour, Al Jazira.
✔ Hotels, Restaurants & Catering Services – Bulk supply contracts for the hospitality industry.
✔ Online Grocery Platforms – Talabat Mart, Carrefour Online, Noon Grocery.
✔ Wholesale Food Distributors – Partnering with Bahrain-based food supply chains.
Renewing Licenses & Ensuring Regulatory Compliance
To maintain operations, food processing plants must renew licenses annually and undergo periodic food safety inspections.
Key License Renewals Required:
✔ Industrial License Renewal – Every 1 to 3 years, based on business category.
✔ Health & Safety Compliance Audits – Conducted by Bahrain’s Ministry of Health.
✔ VAT & Tax Filings – Quarterly and annual tax reporting to NBR Bahrain.
💬 Processing Time: Renewals should be initiated at least 30 days before expiration to avoid fines or business disruptions.
Start Your Food Processing Business in Bahrain Today
Bahrain’s business-friendly policies, strong industrial infrastructure, and access to GCC markets make it an ideal location for food processing businesses. With strategic planning and compliance, businesses can thrive in the growing F&B sector.
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Industrial Zones for Food Processing Plants in Bahrain
✔ Bahrain International Investment Park (BIIP) – Ideal for large-scale food manufacturers.
✔ Sitra Industrial Area – A key hub for food and beverage companies.
✔ Hidd Industrial Area – Well-connected with port access for exports.
Licensing Requirements for Food Processing Companies
✔ Industrial License – Required for food manufacturing.
✔ Food Safety & Health License – Issued by Bahrain Food & Drug Authority (BFDA).
✔ Export License – Mandatory for international trade.
Cost Breakdown for Setting Up a Food Processing Facility
| Expense Type | Estimated Cost (BHD) |
|---|---|
| Business Registration Fees | 500 – 2,000 |
| Industrial Land Lease | 20,000 – 100,000 per year |
| Food Safety Compliance | 2,500 – 10,000 |
| Employee Work Visa | 755 per employee |
| Factory Equipment & Machinery | 50,000 – 500,000 |
💡 Pro Tip: Bahrain’s Economic Development Board (EDB) offers investment incentives for large food businesses.
Food Safety Regulations in Bahrain
✔ Compliance with Bahrain Food & Drug Authority (BFDA).
✔ HACCP Certification required for all food factories.
✔ Regular hygiene and quality control inspections.
Halal Certification for Processed Foods
✔ Mandatory for meat, dairy, and poultry products.
✔ Certification issued by approved Islamic authorities in Bahrain.
✔ Required for exporting to Saudi Arabia and other GCC markets.
Best Selling Food Categories in Bahrain
✔ Dairy & Milk Products – High demand for local and organic brands.
✔ Frozen & Processed Meat – Ideal for restaurants and supermarkets.
✔ Healthy & Organic Foods – Growing interest in vegan, gluten-free, and plant-based alternatives.
Packaging & Labeling Requirements for Food Exports
✔ Bilingual Labels (Arabic & English) – Required for all food products.
✔ Nutritional Information – Must comply with GCC food regulations.
✔ Recycling & Sustainability – Preference for eco-friendly packaging.
Best Business Models for Food Processing Companies
✔ Private Label Manufacturing – Producing food for supermarkets & retail chains.
✔ Contract Food Manufacturing – Providing bulk food production for brands.
✔ Direct-to-Consumer (DTC) Sales – Selling via e-commerce platforms.
Exporting Food Products from Bahrain to GCC Markets
Bahrain’s strategic location and trade agreements make it an ideal hub for food exports across the GCC region. The GCC Customs Union simplifies the export process, reducing tariffs and ensuring smooth trade across Saudi Arabia, UAE, Kuwait, and Oman.
Key Export Benefits:
✔ Duty-Free Access – Bahrain’s FTA agreements enable tariff-free exports to various countries.
✔ Halal-Certified Exports – Required for meat, poultry, and processed foods.
✔ ISO & HACCP Compliance – Ensures access to global food distribution channels.
Cold Storage & Logistics for Food Manufacturing
Maintaining proper temperature control is crucial for dairy, frozen foods, and perishable goods. Bahrain offers state-of-the-art cold storage facilities and logistics hubs for food manufacturers.
Cold Storage Facilities in Bahrain:
✔ Bahrain Logistics Zone (BLZ) – Offers temperature-controlled warehouses.
✔ Khalifa Bin Salman Port – Handles sea shipments of frozen and packaged foods.
✔ Hidd Industrial Area – Central hub for cold storage and refrigerated transportation.
Digital Marketing Strategies for Food Brands in Bahrain
Marketing is key for food processing businesses looking to build brand awareness and expand sales. A strong online presence helps manufacturers, distributors, and retailers reach a wider audience.
Effective Digital Marketing Tactics:
✔ SEO for Food Businesses – Target keywords like “organic food Bahrain” or “best frozen food suppliers in Bahrain.”
✔ Social Media Engagement – Instagram, TikTok, and Facebook are popular for food promotions.
✔ Partnerships with Influencers – Food bloggers and chefs can promote your brand’s unique offerings.
Partnering with Restaurants & Hotels for Food Supply
Bahrain’s hospitality sector is a major consumer of processed and packaged foods. Food manufacturers can secure bulk supply contracts with restaurants, cafes, hotels, and catering companies.
How to Secure B2B Food Supply Contracts?
✔ Join Hospitality Trade Shows – Showcase your products to hoteliers and restaurant chains.
✔ Get Listed as a Supplier – Register with wholesale distributors and hotel procurement platforms.
✔ Offer Custom Food Solutions – Create customized food ingredients or packaging for businesses.
Top Food Distribution Channels & Retail Chains in Bahrain
Food processors can tap into retail, wholesale, and e-commerce platforms to distribute their products.
Best Distribution Channels:
✔ Supermarkets & Hypermarkets – Lulu Hypermarket, Carrefour, Al Jazira, Mega Mart.
✔ Wholesale Food Markets – Bahrain Fresh Market, Bahrain Farmers Market.
✔ E-Commerce & Online Grocery Stores – Talabat Mart, Carrefour Online.
Equipment & Machinery Required for Food Processing Plants
Food manufacturing requires specialized machinery for efficient production, quality control, and packaging.
Common Equipment for Food Processing:
✔ Mixing & Blending Machines – For producing sauces, dairy, and bakery items.
✔ Pasteurization & Sterilization Units – For milk, juices, and canned food products.
✔ Automated Packaging Machines – Sealing, labeling, and filling machines.
Government Incentives & Grants for Food Businesses
Bahrain’s Economic Development Board (EDB) and Tamkeen offer grants, financing, and subsidies for food businesses.
Available Incentives:
✔ Tamkeen Grants – Financial support for food startups and manufacturers.
✔ Subsidized Industrial Land – Discounts for leasing land in industrial zones.
✔ Investment Grants – Funds for technology upgrades and factory expansions.
Understanding the VAT Implications for Food Manufacturers
Bahrain has a 10% VAT on certain food items, but basic food staples are tax-exempt.
VAT Considerations for Food Processing Companies:
✔ Exempted Items – Essential food items like rice, dairy, and fresh produce.
✔ VAT on Luxury & Processed Foods – Applies to ready-made meals, confectionery, and processed meat.
✔ Import VAT on Ingredients – Raw materials may be subject to import duties.
Food Safety Audits & Inspection Requirements
Food processing plants must pass regular health and safety inspections conducted by the Bahrain Food & Drug Authority (BFDA).
Compliance Checklist:
✔ Hazard Analysis & Critical Control Points (HACCP) Certification.
✔ Strict Sanitation Standards for Processing Areas.
✔ Regular Employee Health Checks for food handlers.
Sustainable & Eco-Friendly Practices in Food Processing
Sustainability is a growing priority in Bahrain’s food industry, with consumers and businesses demanding eco-friendly food solutions.
Sustainable Practices for Food Processing Plants:
✔ Energy-Efficient Processing Equipment – Reducing carbon footprint and electricity consumption.
✔ Biodegradable Packaging – Using eco-friendly materials for food storage and distribution.
✔ Waste Reduction & Recycling – Implementing food waste management programs.
Choosing the Right Business Structure for Your Food Processing Plant
Selecting the right legal entity is essential for taxation, ownership rights, and compliance.
✔ With Limited Liability (WLL) – Most suitable for medium to large food processing units.
✔ Single Person Company (SPC) – Ideal for small-scale or artisanal food production.
✔ Foreign Branch Office – For multinational food processing companies expanding to Bahrain.
Bahrain’s Agriculture & Food Industry Overview
✔ Bahrain imports over 80% of its food, creating opportunities for local production.
✔ Rising demand for organic, halal, and functional foods in retail and hospitality sectors.
✔ Government focus on food security initiatives, supporting local food manufacturers.
Investment Opportunities in Bahrain’s Food Industry
✔ Dairy Processing & Cheese Production – Demand for locally produced dairy is increasing.
✔ Plant-Based & Vegan Food Manufacturing – A growing segment in the GCC region.
✔ Ready-to-Eat & Frozen Foods – Expanding due to the popularity of fast meal solutions.
How to Acquire an Industrial Land Lease for Food Manufacturing
✔ Industrial land is available in key zones like Bahrain International Investment Park (BIIP).
✔ Long-term lease options available at competitive rates for food processing businesses.
✔ Approval required from Bahrain’s Economic Development Board (EDB) & Industry Ministry.
Licensing and Permits for Dairy & Meat Processing
✔ Ministry of Health Approval – Ensures compliance with dairy and meat hygiene standards.
✔ Veterinary & Halal Certifications – Mandatory for meat processing and export.
✔ Cold Storage & Transportation Permits – Required for perishable food handling.
Regulations for Organic & Plant-Based Food Processing
✔ Organic Certification by Bahrain’s Food & Drug Authority (BFDA).
✔ Non-GMO Labeling – Transparency in ingredient sourcing and product claims.
✔ Environmental Compliance – Use of sustainable farming and organic ingredients.
The Role of Tamkeen in Food Industry Funding
✔ Tamkeen provides grants and financing for food processing businesses.
✔ Funding available for machinery, workforce training, and operational costs.
✔ Eligible businesses receive up to 50% cost reimbursement on capital investment.
Workforce Requirements & Hiring Food Processing Staff
✔ Skilled labor for production lines – Quality control experts, packaging staff.
✔ Food safety officers – Responsible for HACCP compliance & hygiene standards.
✔ Logistics & warehouse personnel – Ensuring smooth supply chain operations.
Partnering with Supermarkets & Hypermarkets in Bahrain
✔ Secure shelf space in leading retailers like Carrefour, Lulu, and Al Jazira.
✔ Bulk supply contracts with hotel chains and catering companies.
✔ Establish distribution partnerships with wholesale food suppliers.
Importing Raw Materials for Food Production in Bahrain
✔ Low import duties on essential food ingredients.
✔ Access to high-quality raw materials from global suppliers.
✔ Use of Bahrain’s free trade agreements to reduce sourcing costs.
HACCP & GMP Certification for Food Processing Units
✔ HACCP (Hazard Analysis & Critical Control Points) is mandatory for all food manufacturers.
✔ Good Manufacturing Practices (GMP) certification ensures product safety.
✔ Annual food safety audits conducted by Bahrain’s Food & Drug Authority (BFDA).
Exporting Food Products to Saudi Arabia & UAE
✔ Compliance with Saudi Food & Drug Authority (SFDA) regulations.
✔ Tariff-free exports to GCC countries through Bahrain’s Free Trade Agreements.
✔ Special packaging and labeling requirements for Saudi and UAE markets.
Branding & Packaging Considerations for Food Products
✔ Cultural adaptation – Arabic & English bilingual labels.
✔ Recyclable & eco-friendly packaging preferences.
✔ Attractive product design for shelf impact.
Utilizing E-Commerce Platforms for Food Sales
✔ Listing food products on Talabat, Carrefour Online, and Bahrain Supermarket Apps.
✔ Direct-to-Consumer (DTC) business model via company website.
✔ Subscription-based meal kits & ready-to-eat foods gaining popularity.
Sustainability Initiatives in the Food Industry
✔ Use of renewable energy in food production.
✔ Waste reduction strategies & food donation programs.
✔ Adoption of water-efficient processing techniques.
Future Growth Trends in Bahrain’s Food Processing Sector
✔ Demand for healthier food alternatives is increasing.
✔ Rise of functional foods & protein supplements.
✔ Expansion of frozen & convenience food categories.
Financial Planning & Profit Margins in Food Processing
✔ Understanding operational costs and pricing strategies.
✔ Break-even analysis for food processing investments.
✔ Cost optimization through automation & bulk raw material sourcing.
FAQs: Food Processing Plant Setup in Bahrain
1. What are the main legal requirements for setting up a food processing plant in Bahrain?
To set up a food processing plant in Bahrain, businesses must obtain an industrial license, secure approvals from the Ministry of Industry, Commerce, and Tourism (MOICT), and ensure compliance with Bahrain Food & Drug Authority (BFDA) regulations.
2. Can a foreign investor own 100% of a food processing company in Bahrain?
Yes, Bahrain allows 100% foreign ownership of food processing companies under the WLL (With Limited Liability) and Foreign Branch structures, provided they comply with local regulations.
3. How long does it take to register a food processing business in Bahrain?
The registration process typically takes between 3 to 6 weeks, depending on the complexity of approvals, facility inspections, and regulatory compliance requirements.
4. What are the best locations for setting up a food processing plant in Bahrain?
The top industrial zones for food processing businesses in Bahrain include:
Bahrain International Investment Park (BIIP)
Hidd Industrial Area
Sitra Industrial Area
Bahrain Logistics Zone (BLZ)
5. What licenses are required to start a food processing business in Bahrain?
Businesses need the following licenses:
Industrial License (MOICT)
Food Safety & Health License (BFDA)
Halal Certification (if applicable)
Export License (for international trade)
6. What is the cost of setting up a food processing plant in Bahrain?
The estimated cost varies based on the size of the facility, equipment, and licensing fees. Key costs include:
Business Registration Fees: BHD 500 – 2,000
Industrial Land Lease: BHD 20,000 – 100,000 per year
Food Safety Compliance: BHD 2,500 – 10,000
Factory Equipment & Machinery: BHD 50,000 – 500,000
7. Do food processing companies need HACCP certification in Bahrain?
Yes, HACCP (Hazard Analysis & Critical Control Points) certification is mandatory for food processing companies to ensure food safety and compliance with international standards.
8. What food products have the highest demand in Bahrain?
The most in-demand food categories in Bahrain include:
Dairy products (milk, cheese, yogurt)
Frozen & ready-to-eat meals
Organic & plant-based foods
Meat & poultry products
Bakery & confectionery items
9. What are the VAT implications for food processing businesses in Bahrain?
Bahrain applies a 10% VAT on certain food products, but essential food staples such as rice, dairy, and fresh produce are often exempt. Businesses must register for VAT compliance based on their turnover.
10. Can food processing companies in Bahrain export their products to other GCC countries?
Yes, Bahrain’s free trade agreements and GCC Customs Union allow for tariff-free exports to Saudi Arabia, UAE, Kuwait, and Oman, provided that products meet regional regulatory standards.
11. What are the food labeling requirements in Bahrain?
Food products must include:
Bilingual labels (Arabic & English)
Nutritional facts and allergen warnings
Halal certification (if applicable)
Expiration and production dates
12. How can a food processing plant get Halal certification in Bahrain?
Halal certification is issued by recognized Islamic authorities and requires compliance with strict Halal food preparation, processing, and storage standards.
13. Are there any government incentives for food manufacturing businesses in Bahrain?
Yes, Bahrain’s Economic Development Board (EDB) and Tamkeen offer grants, financing, and subsidies for food processing businesses, particularly for small and medium enterprises (SMEs).
14. What types of equipment are required for a food processing facility?
Depending on the type of food production, common equipment includes:
Mixing & blending machines
Pasteurization & sterilization units
Packaging & sealing machines
Cold storage & refrigeration systems
15. What is the process for importing raw materials for food production?
Companies must register with Bahrain’s Customs Affairs and provide the necessary documentation to qualify for low import duties and trade benefits under FTAs.
16. What are the hygiene and sanitation requirements for food processing plants?
All facilities must comply with BFDA food safety regulations, including:
Strict hygiene controls for workers
Regular sanitation of processing areas
Monitoring and testing for foodborne pathogens
17. Can a food processing business operate from a virtual office in Bahrain?
No, a physical facility is required for food production, as businesses must comply with food safety laws and industrial zoning regulations.
18. What are the common challenges faced by food processing businesses in Bahrain?
Some challenges include:
Meeting GCC food regulatory compliance standards
Managing supply chain disruptions
Ensuring consistent quality and safety standards
19. How can food businesses in Bahrain reduce production costs?
Companies can lower costs by:
Leasing industrial land in government-supported zones
Using energy-efficient processing equipment
Partnering with local suppliers to reduce import expenses
20. How does Bahrain’s food industry compare to other GCC countries?
Bahrain offers lower operational costs, easier business setup, and strong trade connectivity compared to larger markets like UAE and Saudi Arabia.
21. Is it necessary to have an on-site laboratory for food testing?
While not mandatory, having a quality control lab improves product safety, regulatory compliance, and customer confidence.
22. What is the best way to distribute food products in Bahrain?
Food manufacturers can distribute through:
Supermarkets & hypermarkets
Wholesale suppliers
Restaurants, cafes, and hotels
Online grocery stores
23. Can food processing companies obtain financing from Bahraini banks?
Yes, Bahrain Development Bank (BDB) and other financial institutions offer funding for food industry expansion.
24. What environmental regulations must food businesses comply with?
Businesses must follow waste management, recycling, and water conservation guidelines to meet sustainability standards.
25. Are there any restrictions on foreign workers in the food processing industry?
Food processing companies can hire foreign workers but must comply with LMRA (Labour Market Regulatory Authority) visa requirements.
26. What insurance coverage is required for food processing businesses?
Food businesses typically require:
Product liability insurance
Employee health & safety insurance
Property and asset insurance
27. What packaging trends are emerging in Bahrain’s food industry?
Eco-friendly & recyclable packaging
Minimalist, transparent packaging designs
Smart packaging with QR codes for product tracking
28. Can a food processing company apply for ISO certification in Bahrain?
Yes, businesses can apply for ISO 22000 (Food Safety Management System) certification for quality assurance.
29. What are the penalties for non-compliance with food safety regulations?
Companies that violate food safety laws may face:
Fines and legal action
Temporary or permanent closure of operations
Loss of business licenses and certifications
30. How can I start my food processing business in Bahrain?
Get professional assistance with business registration, licensing, factory setup, and compliance to ensure a smooth food processing plant setup in Bahrain.
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