Summary

The Bahraini construction industry regained growth momentum in 2018, with output value expanding by 5.7% in real terms - up from 1.7% in 2017. The industry’s output value, measured at constant 2017 US dollar exchange rates, increased from US$7.9 billion in 2017 to US$8.4 billion in 2018. Growth during the review period (2014-2018) averaged 5.1% a year, and was supported by public and private sector investment in infrastructure and residential construction projects, leading to an increase in demand for the Bahraini construction industry.

The industry’s output value in real terms is expected to rise at a compound annual growth rate (CAGR) of 5.58% over the forecast period. The industry is consequently expected to rise from a value of US$8.4 billion in 2018 to US$11.0 billion in 2023, measured at constant 2017 US dollar exchange rates. The total construction project pipeline in including all mega projects with a value above US$25 million - stands at BHD32.8 billion (US$87.1 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 75.2% of the pipeline value being in projects in the pre-execution and execution stages as of March 2019.

The industry’s output value is expected to continue to expand over the forecast period (2019-2023), with investments in transport infrastructure, energy, commercial and industrial projects, as well as improvement in consumer and investor confidence. The government’s aim to reduce the country’s dependency on the oil and gas sector, with a particular emphasis on the non-oil sector, will drive funding towards commercial, industrial and institutional construction projects. In 2018, the government awarded 119 tenders worth BHD278.0 million (US$732.0 million) for roads, sewage and building construction projects. The government’s aim to develop the country’s rail infrastructure will drive the industry’s growth.

Accounting for 36.7% of the industry’s total value in 2018, energy and utilities construction was the largest market in the Bahraini construction industry during the review period. The market is expected to retain its position over the forecast period, with a market share of 35.9% of the industry’s total value in 2023. Over the forecast period, the market output is expected to be supported by government investments in the oil and gas sector and the expansion of water utility projects. Residential construction accounted for 22.8% of the industry’s total output in 2018, followed by commercial construction with 17.6%, infrastructure construction with 16.6%, institutional construction with 3.8% and industrial construction with 2.5%.


Scope

  • This report provides a comprehensive analysis of the construction industry in Bahrain.
  • Historical (2014-2018) and forecast (2019-2023) 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.




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