Bahrain Construction Market Size, Trends and Forecast by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Construction, 2022-2026

Bahrain Construction Market Size, Trends and Forecast by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Construction, 2022-2026

Summary

The construction industry in Bahrain is expected to have expanded marginally by 0.6% in real terms in 2021, compared to an annual decline of 0.9% in 2020. The industry’s output in 2021 was supported by an improvement in oil prices, coupled with investments on infrastructure projects to revive the economic output. According to the Bi-annual Financial Report for 2021, released by the Ministry of Finance, in mid-August 2021, government revenue rose by 23% year on year (YoY) in the first half of last year, increasing from BHD910 million ($2.4 billion) in H1 2020 to BHD1.1 billion ($3 billion) in H1 2021. This was primarily driven by a 33% year-on-year (Y-o-Y) increase in oil revenues due to higher oil prices.

The industry is expected to expand by 4% this year, before registering annual growth in the range of 4-4.5% from 2023 to 2026, supported by investments in the oil, transport infrastructure, and housing sectors. In August 2021, the Bahrain Tender Board reported that the country approved 1,070 tenders worth BHD1.3 billion ($3.4 billion) in H1 2021. The oil sector accounts for the majority share of the total value of tenders allocated during that period, equivalent to 53.5%, followed by the aviation (13.8%) and construction and engineering consultancy (11.9%) tenders.

Forecast-period growth in the industry will also be supported by investments as part of the ‘Strategic Projects Plan’, unveiled in late October 2021; the plan outlays an investment of BHD11.3 billion ($30 billion) in Bahrain’s national infrastructure and its strategic priority sectors. The plan focuses on supporting the post-pandemic recovery of the economy, boosting employment for citizens and attracting foreign investments. As part of the plan, 22 new projects will be implemented in various sectors, including infrastructure, telecommunication, tourism, education, manufacturing and health, among others. It includes allocation for key projects such as the King Hamad Causeway project, the Bahrain Metro project, the Bahrain Petroleum Company (BAPCO) Modernization Programme (BMP), the Madinat Salman housing complex, the East Hidd and the East Sitra housing projects, among others. A major initiative in the plan also includes the creation of five new cities on reclaimed land, thereby increasing Bahrain’s geographical area by three-fifths of the current area.

This report provides detailed market analysis, information and insights into the Bahraini construction industry, including -

• The Bahraini 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 the Bahraini 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 (2017-2021) and forecast (2022-2026) 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 GlobalData'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 GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.