Construction in Bahrain - Key Trends and Opportunities to 2025 (H2 2021)

Bahrain’s construction industry shrunk by 0.9% in real terms in 2020, owing to the dual impact of the Coronavirus (COVID-19) outbreak and a fall in oil prices. Previously, the industry had grown by 2.6% in 2019, and at an annual average rate of 3.3% between 2017-2019. In April 2020, the government cut spending of ministries and government agencies by 30%, and rescheduled some construction and consulting projects to free up funding for initiatives to combat the pandemic. In another setback for the industry’s output in 2020, a sharp decline in oil prices eroded government revenues, most of which are derived from the oil and gas sector. This led to a significant widening of Bahrain's fiscal deficit, and as a result, the government debt rose from 102% of GDP in 2019 to 130% of GDP in 2020. High debt levels and a fall in government income is expected to have weighed on public spending on infrastructure in 2020.

The industry is expected to rebound in 2021, growing by 2% in real terms in 2021, before registering an annual average growth of 4.2% between 2022-2025, supported by investments in the oil, transport infrastructure and housing sectors. In March 2021, the government released the budget for the Fiscal Years (FY) 2021-2022 (1st January, 2021 to December 31st, 2022), which includes a project expenditure of BHD600 million (US$1.6 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. In another positive development, the country awarded contracts worth BHD601.6 million (US$1.6 billion) in the first quarter of 2021, with the oil, aviation and engineering sectors securing the highest value of contracts respectively that quarter.

According to the pipeline of projects tracked by the publisher, Bahrain currently has BHD24.5 billion (US$65 billion)-worth of projects in various stages, making it the 10th largest in the MENA (Middle East and North Africa) region. Some of the major projects currently under construction are the BHD11.2 billion (US$4.2 billion) Sitra Oil Refinery modernization and expansion project, the BHD752 million (US$2 billion) Marassi Al Bahrain mixed-use development project, and the BHD488.8 million (US$1.3 billion) Al Dur 2 IWPP (Independent Water and Power Plant) project.

the publisher's Construction in Bahrain - Key Trends and Opportunities to 2025 (H2 2021) 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.

Scope

This report provides a comprehensive analysis of the construction industry in Bahrain. It provides:

• Historical (2016-2020) and forecast (2021-2025) 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 the publisher'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 the publisher's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.