Bahrain to invest in 22 major infrastructure projects, including five artificial islands

TDT | Manama

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Bahrain is planning a $30 billion surge in infrastructure projects, which includes 22 major developments such as five artificial islands.

The construction market is forecast to grow to $3.17 billion by 2025 and $3.89 billion by 2030, according to a report by Mordor Intelligence.

Public-private partnerships are expected to drive much of this growth, in line with Bahrain’s Economic Vision 2030. The government’s efforts to back large-scale construction projects are a key force behind the market’s expansion.

Productivity

Reforms led by the Economic Development Board are also improving productivity across the building and design sectors.

However, the report acknowledges that the industry faced setbacks in 2020 due to the COVID-19 pandemic and falling oil prices.

Bahrain stands out in the Gulf for offering comparatively low construction costs.

Its designation as a ‘free zone’ allows 100% foreign ownership of businesses and properties.

Investors

This, coupled with the free movement of profits and capital, makes the country attractive to investors.

In 2021, the government allocated BD600 million ($1.6 billion) to fund projects over two years.

These funds have supported developments in infrastructure, housing, health, education, sports, culture, and utilities.

Economic diversification

Among the largest initiatives is a $30 billion plan that includes artificial islands to support urban growth and economic diversification.

The plan is designed to align with Bahrain’s long-term strategy to reduce its reliance on oil and gas, diversify its economy, and invest in workforce training.

The focus on private sector partnerships is key to completing many of these developments.

Challenges

While the outlook is optimistic, the report points to challenges.

Bahrain’s heavy dependence on oil and gas leaves it vulnerable to price swings.

These risks can discourage foreign companies from investing, especially given the broad impact of oil prices on the wider economy.

Urban development

Among the projects underway is Marassi Al Bahrain, an urban development featuring a two-kilometre beach and a mix of residential and commercial properties near Diyar Al Muharraq.

Another major project, a $360 million initiative led by Tatweer Petroleum, started in 2022 and aims to support the energy sector.

At the same time, affordable housing is being pushed through various private sector initiatives.