Bahrain Construction Market Analysis Size, Competitive Landscape, Revenue Analysis 2032
The Bahrain Construction market is projected to grow at a CAGR of 4.3% between 2025 and 2034, reaching a value of USD 14.87 billion by 2034
Bahrain's construction sector has emerged as a pivotal force
in the nation's economic diversification, aligning with the ambitious goals of
Economic Vision 2030. The industry has demonstrated remarkable resilience
and adaptability, navigating global challenges while capitalizing on strategic
investments and reforms.
Robust Growth Amidst Global Challenges
Looking ahead, Bahrain
Construction Market is poised for sustained growth, with projections
indicating a compound annual growth rate (CAGR) of 4.3% from 2025 to 2034,
potentially reaching a market size of $14.87 billion by 2034. This growth
will be driven by continued investments in infrastructure, housing, and
diversification projects, reinforcing Bahrain's position as a dynamic hub in
the Gulf region.
In 2024, Bahrain's construction industry experienced a
significant upsurge, with the total value of tenders awarded increasing by
145.2% year-on-year, following a 114.1% rise in 2023. This momentum is
projected to continue, with the sector expected to grow by 3.5% in real terms
in 2025, supported by both public and private investments in industrial,
commercial, and energy projects.
However, the industry faces challenges, including high wage
costs and a decline in construction loans, which fell by 2.3% in the first
eleven months of 2024. Despite these hurdles, the sector's outlook remains
positive, buoyed by strategic initiatives and infrastructural developments.
Infrastructure: The Cornerstone of Development
Infrastructure development stands at the forefront of
Bahrain's construction endeavors, accounting for approximately 31% of the
sector's market value in 2024.
Additionally, the revitalization of the Qatar–Bahrain
Causeway project in 2024 underscores Bahrain's commitment to regional
integration and infrastructure expansion.
Urban Planning and Housing Initiatives
Bahrain's focus on urban development is evident in projects
like East Hidd City, a planned community designed to provide affordable housing
for approximately 30,000 citizens. The city will feature 4,523 housing
units, public health centers, schools, and recreational facilities, reflecting
a holistic approach to urban planning.
The Urban Planning and Development Authority has also
implemented mechanisms to accelerate land subdivision requests, facilitating
timely development and addressing housing demands.
Diversification Through Tourism and Cultural Projects
In line with its diversification strategy, Bahrain is
investing in tourism and cultural infrastructure. The Bahrain Surf Park,
set to be the Middle East's first Wavegarden, aims to attract approximately
250,000 visitors annually, promoting sustainable tourism and sports activities.
Moreover, the Pearling Path project in Muharraq, a UNESCO
World Heritage site, showcases Bahrain's dedication to preserving its cultural
heritage while integrating modern architectural designs
Economic Reforms and Investment Climate
Bahrain's proactive economic reforms have enhanced its
appeal to foreign investors. The introduction of a 15% minimum tax rate on
certain multinational enterprises from January 2025 aims to create a more
equitable business environment. Additionally, the government's commitment
to public-private partnerships has been instrumental in funding over 22
strategic infrastructure projects worth more than $30 billion.
MRFR recognizes the following Bahrain
Construction Companies - Arabian Gulf Construction Co. W.L.L., Nass
Corporation B.S.C, Haji Hassan Group, Almoayyed Contracting Group, Ahmed
Mansoor Al A’ali Group, Al Hassanian Company, Murray & Roberts Cementation
Company Ltd., Bahrain Contracting Company W.L.L, Edmah, Al Kobaisi Group
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