The Bahrain’s construction industry is expected to grow by 3.5% in real terms in 2025, supported by public and private sector investments in industrial, commercial, and energy construction projects, coupled with the rise in value of tenders awarded.
The total value of tenders awarded grew by 145.2% year on year (YoY) in 2024, preceded by an annual growth of 114.1% in 2023, according to the Tender Board of Bahrain. However, high wage costs, and declining construction loans are expected to pose significant downside risk to the industry’s outlook in 2025. According to the Central Bank of Bahrain (CBB), the average value of outstanding loans and advances to the construction and real estate sector fell by 2.3% in the first eleven months of 2024.
Over the remainder of the forecast period, the construction industry is expected to record an annual average growth of 4.9% between 2026 and 2029, supported by investments in transport infrastructure and renewable energy projects aligned with Bahrain’s Economic Vision 2030. The Vision 2030 includes the BHD11.3 billion ($30 billion) Strategic Projects Plan, unveiled in October 2021, which encompasses 22 national infrastructure projects.
Notable developments include the creation of five new cities – Fasht al-Jarm, Suhaila Island, Fasht al-Azem, Bahrain Bay, and the Hawar Islands – by 2030. Growth over the forecast period will also be driven by investments under the National Renewable Energy Action Plan (NREAP), which targets a 30% reduction in carbon emissions by 2035, compared to 2015 levels and aims to achieve net-zero emissions by 2060.
Source:https://www.globenewswire.com/en/search/organization/Research%2520and%2520Markets