Bahrain Construction Market Size (2024 - 2029)

Bahrain Construction Market Analysis

The Bahrain Construction Market size is estimated at USD 3.04 billion in 2024, and is expected to reach USD 3.73 billion by 2029, growing at a CAGR of 4.18% during the forecast period (2024-2029).

• Strong government initiatives to invest in major construction projects are driving the market. Many labor market reforms backed by the economic development board may boost growth and improve productivity and output in the construction sector. Bahrain's construction industry shrunk in 2020 owing to the dual impact of the COVID-19 outbreak and a fall in oil prices. The cost of setting up and running a construction project in Bahrain is meager compared to other GCC countries. Bahrain is a ‘free zone,’ which allows 100% foreign ownership of the business and real estate and free movement of profits, capital, and dividends for the investors.
• In March 2021, the government released the budget for the Fiscal Years (FY) 2021-2022 (January 1, 2021, to December 31, 2022), which includes a project expenditure of BHD 600 million (USD1.6 billion) over the next two years. This includes allocations for projects in the infrastructure, housing, health, education, sports, culture, electricity, and water sectors, among others.
• Bahrain unveiled more than 22 critical infrastructure projects totaling more than USD 30 billion as part of its 2021 Economic Recovery Plan, including the creation of five artificial islands. Public-private partnerships model will be used to develop the majority of these projects. The Kingdom's Vision 2030 economic development strategy is congruent with the focus on construction that is being made. The strategy advocates diversification of the economy expanded privatization and industrialization, and training and education of Bahrain's national workforce to develop infrastructure, industry, housing, and connectivity.
• The process of project approval in Bahrain is very tedious and therefore discourages foreign companies from investing in construction projects here. Political instability threatens economic stability, thus adding more complications for foreign investors. Being an oil and gas-dependent economy, the price movements remain a source of risk as price changes affect every other sector, alarming foreign investors. Most of the labor and workers in Bahrain are unskilled, and the difficulty in obtaining visas discourages foreign labor.

Bahrain Construction Industry Segmentation

Construction is an industry that includes the erection, maintenance, and repair of buildings and other immobile structures and the building of roads and service facilities that have become integral parts of structures and are essential to their use. The Bahraini construction market report covers a complete analysis of the industry, including current economic and market scenarios, market size estimation for key segments, and emerging trends in the market segments. The report also covers the impact of the COVID-19 pandemic on the market.

The Bahrain Construction Market is Segmented by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure [Transportation] Construction, and Energy and Utilities Construction). The report offers market size and forecasts for the Bahrain Construction market in value (USD) for all the above segments.