Bahrain Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (H1 2026)
Description
Bahrain Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (H1 2026)
Summary
The Bahrain’s construction industry is expected to grow by 3.5% in real terms in 2025, supported by public and private sector investment in industrial, commercial, and energy construction projects. According to the Central Informatics Organization of Bahrain (CIO), the value-add of the construction industry grew by 4.4% year on year (YoY) in Q3 2025, preceded by Y-o-Y growth of 2.7% in Q2 and 5.4% in Q1 2025. Growth in 2026 is also expected to be supported by the budgetary allocation as part of the State Budget FY2026 (January 1, 2026, to December 31, 2026) which includes total public expenditure of BHD8.9 billion ($23.7 billion); of which BHD4.5 billion ($12.1 billion) for FY2026. However, high wage costs, and declining construction loans are expected to pose significant downside risk to the industry’s outlook in 2026. According to the Central Bank of Bahrain (CBB), the average value of outstanding loans and advances to the construction and real estate sector fell by 4.7% YoY in the first eleven months of 2025, preceded by an annual decline of 2.7% in 2024.
Over the remainder of the forecasted period, the construction industry is expected to record an annual average growth of 5% between 2027 and 2030, supported by investments in transport infrastructure and renewable energy projects aligned with Bahrain’s Economic Vision 2030. Vision 2030 includes the BHD11.3 billion ($30.1 billion) Strategic Projects Plan, unveiled in October 2021, which encompasses 22 national infrastructure projects. Notable developments include the creation of five new cities - Fasht al-Jarm, Suhaila Island, Fasht al-Azem, Bahrain Bay, and the Hawar Islands - by 2030. Growth over the forecast period will also be driven by investments under the National Renewable Energy Action Plan (NREAP), which targets a 30% reduction in carbon emissions by 2035 compared to 2015 levels, and aims to achieve net-zero emissions by 2060. In another boost to the industry, the government is aiming to construct 184.2km of monorail system by 2030 as part of the Integrated Public Transport Network program. It involves an investment of BHD3 billion ($8 billion) that will be implemented in four stages by 2030.
GlobalData’s Construction in the Bahrain - Key Trends and Opportunities to 2030 (H1 2026) report provides detailed market analysis, information, and insights into Bahrain's construction industry, including -
This report provides a comprehensive analysis of the construction industry in Bahrain. It provides -
Summary
The Bahrain’s construction industry is expected to grow by 3.5% in real terms in 2025, supported by public and private sector investment in industrial, commercial, and energy construction projects. According to the Central Informatics Organization of Bahrain (CIO), the value-add of the construction industry grew by 4.4% year on year (YoY) in Q3 2025, preceded by Y-o-Y growth of 2.7% in Q2 and 5.4% in Q1 2025. Growth in 2026 is also expected to be supported by the budgetary allocation as part of the State Budget FY2026 (January 1, 2026, to December 31, 2026) which includes total public expenditure of BHD8.9 billion ($23.7 billion); of which BHD4.5 billion ($12.1 billion) for FY2026. However, high wage costs, and declining construction loans are expected to pose significant downside risk to the industry’s outlook in 2026. According to the Central Bank of Bahrain (CBB), the average value of outstanding loans and advances to the construction and real estate sector fell by 4.7% YoY in the first eleven months of 2025, preceded by an annual decline of 2.7% in 2024.
Over the remainder of the forecasted period, the construction industry is expected to record an annual average growth of 5% between 2027 and 2030, supported by investments in transport infrastructure and renewable energy projects aligned with Bahrain’s Economic Vision 2030. Vision 2030 includes the BHD11.3 billion ($30.1 billion) Strategic Projects Plan, unveiled in October 2021, which encompasses 22 national infrastructure projects. Notable developments include the creation of five new cities - Fasht al-Jarm, Suhaila Island, Fasht al-Azem, Bahrain Bay, and the Hawar Islands - by 2030. Growth over the forecast period will also be driven by investments under the National Renewable Energy Action Plan (NREAP), which targets a 30% reduction in carbon emissions by 2035 compared to 2015 levels, and aims to achieve net-zero emissions by 2060. In another boost to the industry, the government is aiming to construct 184.2km of monorail system by 2030 as part of the Integrated Public Transport Network program. It involves an investment of BHD3 billion ($8 billion) that will be implemented in four stages by 2030.
GlobalData’s Construction in the Bahrain - Key Trends and Opportunities to 2030 (H1 2026) 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.
This report provides a comprehensive analysis of the construction industry in Bahrain. It provides -
- Historical (2021-2025) and forecast (2026-2030) 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
- Identify and evaluate market opportunities using our 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 business strategies using GlobalData's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
66 Pages
- 1 Executive Summary
- 2 Construction Industry: At-a-Glance
- 3 Context
- 3.1 Economic Performance
- 3.2 Political Environment and Policy
- 3.3 Demographics
- 3.4 Risk Profile
- 4 Construction Outlook
- 4.1 All Construction
- Outlook
- Latest news and developments
- 4.2 Commercial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.3 Industrial Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.4 Infrastructure Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.5 Energy and Utilities Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.6 Institutional Construction
- Outlook
- Project analytics
- Latest news and developments
- 4.7 Residential Construction
- Outlook
- Project analytics
- Latest news and developments
- 5 Key Industry Participants
- 5.1 Contractors
- 5.2 Consultants
- 6 Construction Market Data
- 7 Appendix
- 7.1 What is this Report About?
- 7.2 Definitions
- 7.3 CRI Methodology
- 8 About GlobalData
- 9 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Bahrain, Key Economic Indicators
- Table 3: Bahrain, Commercial Construction Output by Project Type (Real % Change), 2021–30
- Table 4: Bahrain, Top Commercial Construction Projects by Value
- Table 5: Bahrain, Industrial Construction Output by Project Type (Real % Change), 2021–30
- Table 6: Bahrain, Top Industrial Construction Projects by Value
- Table 7: Bahrain, Infrastructure Construction Output by Project Type (Real % Change), 2021–30
- Table 8: Bahrain, Top Infrastructure Construction Projects by Value
- Table 9: Bahrain, Energy and Utilities Construction Output by Project Type (Real % Change), 2021–30
- Table 10: Bahrain, Top Energy and Utilities Construction Projects by Value
- Table 11: Bahrain, Institutional Construction Output by Project Type (Real % Change), 2021–30
- Table 12: Bahrain, Top Institutional Construction Projects by Value
- Table 13: Bahrain, Residential Construction Output by Project Type (Real % Change), 2021–30
- Table 14: Bahrain, Top Residential Construction Projects by Value
- Table 15: Bahrain, Key Contractors
- Table 16: Bahrain, Key Consultants
- Table 17: Bahrain Construction Output Value (Real, $ Million)
- Table 18: Bahrain Construction Output Value (Nominal, BHD Million)
- Table 19: GlobalData Construction Market Definitions
- Table 20: GlobalData Construction Market Definitions
- Table 21: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Middle East and North Africa, Construction Output (Real % Change), 2024–30
- Figure 2: Bahrain, Construction Output by Sector (Real % Change), 2024–26 and 2027–30
- Figure 3: Bahrain, Risk Summary
- Figure 4: Bahrain, Risk Regional Comparison
- Figure 5: Bahrain, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2021–30
- Figure 6: Bahrain, Construction Output Value, by Sector (Real, $ Million), 2021–30
- Figure 7: Bahrain, Constructions Value-Add (BHD Million, 2010 Constant Prices)
- Figure 8: Bahrain, Value of Tenders Awarded (BHD Million)
- Figure 9: Bahrain, Outstanding Loans and Advances to the Construction and Real Estate Sector (BHD Million)
- Figure 10: Bahrain, Business Confidence Index (2017=100)
- Figure 11: Bahrain, Foreign Direct Investment (FDI) in Construction (BHD million)
- Figure 12: Bahrain, Commercial Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 13: Bahrain, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 14: Bahrain, Wholesale and Retail Trade Value-add (BHD Million, 2010 Constant Prices)
- Figure 15: Bahrain, Outstanding Loans and Advances to the Accommodation and Food Service Sector (BHD Million)
- Figure 16: Bahrain, Industrial Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 17: Bahrain, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 18: Bahrain, Manufacturing Value-Add (BHD Million, 2010 Constant Prices)
- Figure 19: Bahrain, Mining and Quarrying Value-Add (BHD Million, 2010 Constant Prices)
- Figure 20: Bahrain, Producer Price Index (2020=100)
- Figure 21: Bahrain, Infrastructure Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 22: Bahrain, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 23: Bahrain, Transportation and Storage Value-Add (BHD Million, 2010 Constant Prices)
- Figure 24: Bahrain, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 25: Bahrain, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 26: Bahrain, Electricity and Water Value-add (BHD Million, 2010 Constant Prices)
- Figure 27: Bahrain, Institutional Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 28: Bahrain, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 29: Bahrain, Education Value-Add (BHD Million, 2010 Constant Prices)
- Figure 30: Bahrain, Human Health and Social Work Activities Value-add (BHD Million, 2010 Constant Prices)
- Figure 31: Bahrain, Residential Construction Output by Project Type (Real, $ Million), 2021–30
- Figure 32: Bahrain, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 33: Bahrain, Real Estate Value-Add (BHD Million, 2010 Constant Prices)
- Figure 34: Bahrain, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 35: Bahrain, Headquarters of Key Consultants (% of Total Project Pipeline)
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