Boston, MA -- (SBWIRE) -- 04/11/2014 -- The Bahraini construction industry increased in value at a compound annual growth rate (CAGR) of 1.68% during the review period (2009-2013). This growth was supported by public investments in the infrastructure and residential markets, which are expected to be the main growth drivers over the forecast period (2014-2018). The industry is projected to record a forecast-period CAGR of 8.59%. Industry expansion will also be driven by a population increase, government initiatives to support the growth of high value-add projects, and an expected revival in investor confidence.
- The construction industry in Bahrain is in a stage of recovery after struggling from the lows of 2008-2009 financial crisis and political unrest since 2011. According to the Central Informatics Organization (CIO), in the third quarter of 2013 the Bahraini construction industry's contribution to GDP accounted for 6.3%. The industry is expected to value BHD3.4 billion (US$8.8 billion) in 2018, with growth largely supported by heavy investments in infrastructure and housing projects. A number of other major projects are either in the planning stage or under construction, such as the Gulf rail line development, airport expansion plans, infrastructure for three new cities, investment in power and water projects, a public transport network due in 2030, and a new state-of-the-art exhibition center.
- Construction growth will also be driven by the Bahrain Economic Vision 2030, through which the country is looking to become a developed nation by diversifying its economy, achieving sustainable development and providing a high standard of living for its population. The Economic Development Board (EDB) has initiated a program to formulate the first national economic strategy. To accomplish this, both public and private funds will be required to maintain and develop infrastructure. In January 2014, the government also announced plans to spend BHD835.5 million (US$2.2 billion) to enhance power facilities. This project will be a part of a BHD3.8 billion (US$10.0 billion) Gulf Corporation Council (GCC) fund allocated for the improvement of infrastructure.
- To diversify its economy from oil, the government is actively pursuing its Economic Vision 2030 which marks industrialization, diversification and privatization as growth opportunities. The government is making efforts to attract foreign investors and increase the participation of private investors in other economic sectors than oil. Efforts to diversify the economy will create opportunities for the construction industry.
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Companies Mentioned in this Report: Nass Corporation BSC, The Ahmed Mansoor Al A'ali Group, Arabian Dredging Company WLL, Alwardi Group, Inovest BSC
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