BMI View : We forecast that up to 2018, real growth in Bahrain's construction industry will average 3.6% , buoyed by government investment in infrastructure and social housing. While this is an improved outlook on a year ago, there is no end in sight to Bahrain's protracted political crisis and we see little chance of a rapid construction industry recovery. Persistent political uncertainty will likely see private sector investment into new projects remain weak when there are more attractive opportunities elsewhere in the Gulf region .
Key developments in the sector:
According to the government, Bahrain is due to launch infrastructure projects worth USD4.4bn in the coming years, financed out of a USD10bn 10-year fund pledged by the Gulf Cooperation Council (GCC) for the country in 2011. USD2.2bn will be allocated to housing construction over 2015-17, while the remaining half will be channelled towards the water and power sectors.
Our Country Risk team believe that the country will not regain its former status as the region's leading financial centre. Bahrain's historical position as the regional hub for Islamic finance is already under threat from Dubai, which announced in 2013 that it would seek to become the global capital of the Islamic economy. In conventional banking, Abu Dhabi, Qatar and Saudi Arabia are gradually eroding the status of Dubai and Bahrain. As a major driver of real estate investment in Manama, the failure of Bahrain to regain its status will drag on demand for major new office space and high-end residential building.
In light of subdued private sector activity, investment will remain primarily government-driven and is likely to focus predominantly around a number of large-scale industrial projects, including the USD4.8bn expansion and modernisation of state-run Bahrain Petroleum's refinery; a new USD2.2bn production line at Aluminium Bahrain; a USD1.2bn expansion by Gulf Petrochemical Industries; and plans to expand...
The Bahrain Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Bahrain Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Bahraini infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Bahrain to test other views - a key input for successful budgetary and planning in the Bahraini infrastructure market.
- Target business opportunities and risks in the Bahraini infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Bahrain.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.