The construction industry in Bahrain is expected to grow by 3.5% in real terms in 2025, supported by an increase in the number of contracts awarded, coupled with rising investments in commercial, industrial, and energy construction projects. Growth in 2025 is also expected to be supported by the budgetary allocation as part of the State Budget for Fiscal Year (FY) 2025 (from January 1st, 2025 to December 31st, 2025) and FY2026 which includes total public expenditure of BHD8.9 billion ($23.7 billion); of which BHD4.4 billion ($11.6 billion) for FY2025 and BHD4.5 billion ($12.1 billion) for FY2026. The construction industry in 2025 will also be bolstered by the development of oil and gas exploration projects. The government is aiming to increase the kingdom’s crude oil refining potential from 267,000 barrels per day (b/d) as of December 2024 to 400,000 b/d by the end of 2025 as part of the Bapco Modernisation Program (BMP). The program aims at the upgradation of Sitra refinery with an investment of BHD2.6 billion ($7 billion) to achieve the production target. However, reliance on oil exports presents vulnerabilities, particularly amid geopolitical tensions involving Iran and potential disruptions to trade routes.
The analyst expects the construction industry to record an annual average growth rate of 4.9% during 2026-29, supported by investments in infrastructure, housing and renewable energy projects. 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 ($7.9 billion) that will be implemented in four stages by 2030. Growth over the forecast period will also be supported by the implementation of Bahrain’s Economic Vision 2030 that includes BHD11.3 billion ($30 billion) Strategic Projects Plan, unveiled in October 2021, which encompasses 22 national infrastructure projects.
The analyst expects the construction industry to record an annual average growth rate of 4.9% during 2026-29, supported by investments in infrastructure, housing and renewable energy projects. 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 ($7.9 billion) that will be implemented in four stages by 2030. Growth over the forecast period will also be supported by the implementation of Bahrain’s Economic Vision 2030 that includes BHD11.3 billion ($30 billion) Strategic Projects Plan, unveiled in October 2021, which encompasses 22 national infrastructure projects.
The Construction in Bahrain - Key Trends and Opportunities to 2029 (H2 2025) 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 (2020-2024) and forecast (2025-2029) 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 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 the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
