Construction sector set to reach $3.04bln this year

TDT | Manama

The Daily Tribune - www.newsofbahrain.com   

The construction sector in Bahrain is expected to reach $3.04 billion in investments by the end of 2024, according to a recent report. This represents a compound annual growth rate (CAGR) of 4.18%, fueled by major investments in infrastructure, renewable energy, and oil and gas projects, all aligned with Bahrain’s Economic Vision 2030, reported our sister newspaper Al Ayam based on a report published by the Market Research Future.

In 2023, the construction sector witnessed a slight decline in investment, reaching approximately $1.7 billion, with a growth rate of only 1.2%. This slowdown was attributed to factors such as rising interest rates and project delays. However, in 2022, the sector saw a more robust growth of 2.5%, reaching $1.8 billion, driven by infrastructure projects and growth in the real estate sector.

Market expansion

The “Market Research Future” report on Bahrain’s construction sector highlights the growing construction activity in commercial, residential, industrial, and infrastructure sectors, driving market expansion. The sector is experiencing a surge in demand for various services, materials, and skilled labour. The report also emphasises the role of technological innovation and sustainable practices in bolstering the construction sector in Bahrain.

Market players are focusing on resource optimization, project efficiency, and minimising environmental impact. The report further stresses the government’s initiative to promote affordable housing and urban development, attracting both domestic and international investors.

Strong position

With the continuous demand for housing, the construction sector is expected to maintain its strong position in the market. Bahrain has already launched several major projects in the construction sector in 2024, including the Bahrain Metro project, one of the largest infrastructure projects aimed at enhancing public transportation.

Other significant projects include the Salman Industrial City, aiming to boost the industrial sector and provide a favourable environment for investors, and the expansion of the Salmaniya Medical Complex, focusing on improving healthcare facilities and increasing capacity.