Bahrain Infrastructure Report 2016
BMI View: Bahrain saw an uptick in construction over late 2014 and growth for the year came in higherthan forecast, at a robust 7.3%. Growth prospects for 2015 and 2016 are more subdued, as governmentspending comes under increasing pressure from falling global oil prices and private investor interestremains hampered by ongoing political insecurity. The key focus remains on residential construction asBahrain addresses the shortfall in social housing capacity, as well as transport infrastructure, particularlyconnections with neighbouring Saudi Arabia. These developments remain heavily reliant on externalfunding and as the GCC investment programme slows we expect growth in Bahrain's construction sector tostagnate over the latter half of the forecast period.
Latest Updates And Structural Trends
Bahrain's housing shortage means the government continues to focus on residential construction projects.In 2015 construction was ongoing on 3,895 houses in two housing projects in Northern City and EastHidd. The projects are part of the scheme that comprises construction of 25,000 units in the next fouryears under five housing projects throughout the country, including the East Sitra project, SouthernHousing Project and Al Ramli Housing Project.
Air transport infrastructure, which has lagged behind other countries in the region, is attractinginvestment and the government has announced plans to build the country's second airport on a purposebuiltisland off the north coast. The country's existing airport, the Bahrain International Airport, is alsoundergoing expansion as a part of airport modernisation programme. The expansion plan, includingconstruction of a passenger terminal, 24 airport bridges, arrival and departure lounges and loading bays,is scheduled to be completed in 2019.
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