Following a marginal growth of 0.8% in real terms in 2023, The analyst expects Bahrain’s construction industry to grow by 3.4% in real terms this year, supported by positive developments in commercial, infrastructure and energy and utilities construction projects coupled with an improvement in the value of tenders awarded for construction. The total value of tenders awarded grew by 102.2% year-on-year (YoY) in the first four months of 2024, preceded by an annual growth of 114.1% in 2023, according to the Tender Board of Bahrain. However, high wage costs, tight monetary policy and declining construction loans are expected to pose significant downside risk to the industry’s outlook in the short term. According to the Central Bank of Bahrain (CBB), the average value of outstanding loans and advances to the construction and real estate sector fell marginally by 0.9% in the first five months of 2024.
Over the remainder of the forecast period, the construction industry is expected to record an annual average growth of 4.6% during 2025-28, supported by investments in transport infrastructure projects, and renewable energy projects in line with Bahrain’s Economic Vision 2030. The Vision 2030 plan includes the ‘Strategic Projects Plan’, which was unveiled in October 2021 and involves an investment of BHD11.3 billion ($30 billion) in 22 new projects in the country’s national infrastructure. The new projects also include the creation of five cities: Fasht al-Jarm, Suhaila Island, Fasht al-Azem, Bahrain Bay and the Hawar Islands by 2030. It also includes development of a sports city in Sakhir, with a cost of over BHD100 million ($266 million) by 2025. Forecast period growth in the industry will also be supported by the implementation of the Industrial Sector Strategy (2022-26). Under this Strategy, the government intends to raise the industrial sector's contribution to the country’s economy from 12.8% in 2019 to 14.5% by 2026. Growth over the forecast period will also be supported by investments as part of the National Renewable Energy Action Plan (NREAP), which aims to achieve a 30% reduction in carbon emission by 2035, compared to 2015 levels, and eventually achieve net zero emission by 2060.
Over the remainder of the forecast period, the construction industry is expected to record an annual average growth of 4.6% during 2025-28, supported by investments in transport infrastructure projects, and renewable energy projects in line with Bahrain’s Economic Vision 2030. The Vision 2030 plan includes the ‘Strategic Projects Plan’, which was unveiled in October 2021 and involves an investment of BHD11.3 billion ($30 billion) in 22 new projects in the country’s national infrastructure. The new projects also include the creation of five cities: Fasht al-Jarm, Suhaila Island, Fasht al-Azem, Bahrain Bay and the Hawar Islands by 2030. It also includes development of a sports city in Sakhir, with a cost of over BHD100 million ($266 million) by 2025. Forecast period growth in the industry will also be supported by the implementation of the Industrial Sector Strategy (2022-26). Under this Strategy, the government intends to raise the industrial sector's contribution to the country’s economy from 12.8% in 2019 to 14.5% by 2026. Growth over the forecast period will also be supported by investments as part of the National Renewable Energy Action Plan (NREAP), which aims to achieve a 30% reduction in carbon emission by 2035, compared to 2015 levels, and eventually achieve net zero emission by 2060.
The Construction in Bahrain - Key Trends and Opportunities to 2028 (H2 2024) report provides detailed market analysis, information, and insights into Bahrain’s construction industry, including :
- Bahrain’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Bahrain’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Bahrain. It provides :
- Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Bahrain, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the analyst's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the analyst's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
