Summary

The Bahrain construction industry grew at a CAGR of 7.85% for the period 2003-2008. Residential construction accounts for 51.0% of the Bahrain construction industry's value, while non-residential construction accounts for the balance 49.0%. Construction Industry is one of the biggest sectors of Bahrain after oil export, aluminum export and financial sector. Bahrain's construction sector contributed 9.7% to the total GDP of the country in 2008, a decline of 0.1% on 2007. Bahrain's construction sector is likely to grow at an average rate of 7.0% from 2009 through 2013. In Bahrain, the financing for the construction projects has become difficult with liquidity tightening and investors being reluctant to enter the market, resulting in lower transactions. The premium housing prices are likely to reduce by 15.0% to 20.0%, while the prices in middle income bracket are likely to stay strong and may grow by 10.0% to 20.0% because of strong demographic demand. Bahrain has been actively pursuing the diversification and privatization of its economy to reduce the country's reliance on oil. Some of the major construction projects being undertaken in Bahrain include the $2.6 billion North Bahrain New Towns Project, the US$2.5 billion waterfront metropolis by the Bahrain Bay Development, and the US$1.5 billion Amwaj Islands project. The factors driving the construction market in Bahrain are: Implementation of freehold property laws in 2003 for foreign nationals by Bahraini government, strong growth in population, ease of doing business in Bahrain, high influx of expatriate population due to Bahrain being an open economy and more liberal lifestyle, attractive property prices, financing conditions and legal environment. However, tightening credit scenario following the current global financial crisis, worldwide economic slowdown and loss of wealth, could act as significant deterrents to the growth of construction sector in Bahrain.

Table of Contents

Bahrain Construction Market Analysis
Bahrain Construction Competitive Landscape
Leading Bahrain Construction Companies
Bahrain Construction Market Forecast
Appendix