|
|
 |
|
Viewing report
|
|
|
|
Bahrain Infrastructure Report 2011
Business Monitor International, Dec 2010, Pages: 78
Business Monitor International's Bahrain Infrastructure Report provides industry professionals and strategists, corporate analysts, infrastructure associations, government departments and regulatory bodies with independent forecasts and competitive intelligence on Bahrain's infrastructure industry.
Business Environment Ratings
Bahrain scores well in our regional Business Environment league table. The state is placed third overall, out of a total of 11 nations. Bahrain’s competitive advantage is very much in its strong showing for the Risk categories. It performs relatively poorly in the Rewards categories, however. This is largely due to constraints on Industry Rewards. There would need to be a significant improvement in this latter category, if Bahrain were ever to challenge Qatar, the region’s top-ranked state, although the secondplaced nation, Oman, is very much vulnerable to being overtaken.
Industry Forecast Scenario
After a contraction of 4.3% in 2009, we estimate that Bahrain’s construction sector underwent growth of 1.6% in 2010. The performance over the last two years stands in stark contrast to that registered in the preceding two years, as sector growth registered 23.7% in 2007 and 8.5% in 2008. The poor performance in later years is attributable to the global economic downturn, which has crimped output in Bahrain’s wider economy. However, the construction sector took a disproportionate hit from the wider downturn, due to the highly cyclical nature of this industry (and the fact that the local boom had already become somewhat over-extended).
We anticipate that Bahrain’s construction sector will continue to recover in 2011, albeit slowly. We forecast that the sector will undergo growth in real terms of 3.2%, before staying in a range of 3.0%-4.0% across the remainder of our core forecast period (2012-2015). A number of factors will put a lid on sector growth going forward, despite a moderate recovery in the wider economy. One key factor is the high base provided by the boom years up to (and including 2008), which created significant new stock, particularly in the commercial construction sector. The office sub-sector is faced with a particularly marked supply overhang. Meanwhile, although there is a long waiting list for social and affordable housing, structural constraints in those sectors – not least the government’s limited budget for assisting such building activity – limit the scope of future growth.
Transport and power infrastructure should provide moderate positive impetus to construction activity during our forecast period. Planned activity in the rail sub-sector should provide upside.
Product samples
A sample for this product is available. Please Login/Register to download this sample.
|
|
|
|
