Bahrain's Construction Sector Set for Growth to $3.73 Billion by 2029

TDT | Manama

The Daily Tribune - www.newsofbahrain.com

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Bahrain’s construction sector is anticipated to rise from $3.04 billion in 2024 to $3.73 billion by 2029, reflecting a steady annual growth rate of 4.18%, according to Mordor Intelligence.

This growth is largely propelled by significant government investment in large-scale projects and recent labour market reforms aimed at increasing productivity.

In 2020, the industry faced hurdles due to the effects of COVID-19 and declining oil prices. Nevertheless, Bahrain’s relatively low project costs compared to other GCC countries, coupled with its “free zone” status—which permits full foreign ownership and unrestricted movement of profits and capital—continues to attract investment.

The 2021-2022 budget allocates 600 million dinars ($1.6 billion) for infrastructure, housing, and other essential sectors. Additionally, Bahrain’s economic recovery plan includes over 22 major infrastructure projects worth more than $30 billion, which features the development of five artificial islands.

Public-private partnerships are projected to play an important role in progressing these projects, in keeping with the Vision 2030 policy, which promotes economic diversification, privatisation, and workforce development to boost infrastructure and industry growth.