In 2022, the construction market in Bahrain was valued at $8.5 billion and is expected to attain an AAGR of over 4% from 2024 to 2027. The industry's growth during the forecast period will be bolstered by foreign direct investment (FDI) in essential sectors such as financial services, ICT, logistics, manufacturing, and tourism.
Bahrain's construction sector is being propelled by significant government initiatives aimed at investing in major construction projects. Furthermore, the economic development board is supporting various labor market reforms that could stimulate growth and enhance productivity and output in the construction sector. However, Bahrain's construction industry contracted in 2020 due to the dual impact of the COVID-19 outbreak and a decline in oil prices. Despite this, the expenses associated with initiating and operating construction projects in Bahrain are lower than in other GCC countries. Additionally, Bahrain's "free zone" policy allows for 100% foreign ownership of businesses and real estate, as well as the unrestricted flow of profits, capital, and dividends for investors.
Worth of Projects
Construction Companies tracked
S&P has reported that the government of Bahrain intends to increase non-oil revenue starting in 2023 through the implementation of various measures, such as fee increases, which will provide support for the economy.
Additionally, the country plans to double its VAT rate to 10% from 2022 and rely on oil revenues to decrease Bahrain's budget deficit to under 4% of GDP in the same year.
In an effort to attract foreign direct investment, the government has disclosed details of a US$2.5 billion initiative that aims to be achieved by 2023. The initiative includes numerous projects in areas such as education, health, social development, youth, sports, and industry
There are over $52 Billion worth of active construction projects in Bahrain. Ventures ONSITE tracks all these construction projects in Bahrain.
Our comprehensive data offers valuable insights to help you find and select the most suitable projects for your business.
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