Bahrain Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (H2 2026)

Summary

The analyst has revised down its growth for Bahrain’s construction industry in 2026 from its previous estimate of 4.4% to 1.8%, owing to the anticipated impact on construction activities, due to supply chain disruptions and rise in energy costs, arising from the regional conflict following the US and Israeli attacks on Iran in February 2026. Devastating drone and missile strikes between February and March 2026 by Iran damaged Bahrain’s energy infrastructure, by destroying the Bapco Sitra Refinery, Saudi oil pipeline, Awali oil field, and Hidd LNG Terminal. This destruction, paired with a maritime blockade and attacks on data centers in mid July 2026, is expected to cause a deep slowdown in the kingdom's energy and construction sectors. The industry’s growth in 2026 is also expected to slow from an annual rate of 3.5% in 2025, owing to high government debt, limited economic diversification, and the Middle East war, which has led to the closure of the Strait of Hormuz, disrupted supply chains, and increased construction material prices.

Over the remainder of the forecast period, the construction industry is expected to record an annual average growth of 4.8% between 2027 and 2030, supported by investments in transport infrastructure and renewable energy projects, in line with Bahrain’s Economic Vision 2030. The Vision includes the BHD11.3 billion ($30.1 billion) Strategic Projects Plan, which was unveiled in October 2021; it 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.

The analyst’s Construction in Bahrain - Key Trends and Opportunities to 2030 (H2 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.

Scope

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

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

1 Executive Summary2 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

About the Analyst
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, Construction Value-Add (BHD Million, 2010 Constant Prices)
Figure 8: Bahrain, Value of Tenders Awarded (BHD Million), (3-month moving average)
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, Commercial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 12: Bahrain, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 13: Bahrain, Wholesale and Retail Trade Value-add (BHD Million, 2010 Constant Prices)
Figure 14: Bahrain, Outstanding Loans and Advances to the Accommodation and Food Service Sector (BHD Million)
Figure 15: Bahrain, Industrial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 16: Bahrain, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 17: Bahrain, Manufacturing Value-Add (BHD Million, 2010 Constant Prices)
Figure 18: Bahrain, Mining and Quarrying Value-Add (BHD Million, 2010 Constant Prices)
Figure 19: Bahrain, Producer Price Index (2020=100)
Figure 20: Bahrain, Infrastructure Construction Output by Project Type (Real, $ Million), 2021-30
Figure 21: Bahrain, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 22: Bahrain, Transportation and Storage Value-Add (BHD Million, 2010 Constant Prices)
Figure 23: Bahrain, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021-30
Figure 24: Bahrain, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 25: Bahrain, Electricity and Water Value-add (BHD Million, 2010 Constant Prices)
Figure 26: Bahrain, Institutional Construction Output by Project Type (Real, $ Million), 2021-30
Figure 27: Bahrain, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 28: Bahrain, Education Value-Add (BHD Million, 2010 Constant Prices)
Figure 29: Bahrain, Human Health and Social Work Activities Value-add (BHD Million, 2010 Constant Prices)
Figure 30: Bahrain, Residential Construction Output by Project Type (Real, $ Million), 2021-30
Figure 31: Bahrain, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 32: Bahrain, Real Estate Value-Add (BHD Million, 2010 Constant Prices)
Figure 33: Bahrain, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 34: Bahrain, Headquarters of Key Consultants (% of Total Project Pipeline)

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