Bahrain Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2030 (H2 2026)
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GlobalData has revised down its growth for Bahrain’s construction industry in 2026 from its previous estimate of 4.4% to 1.8%, owing to the anticipated impact on construction activities, due to supply chain disruptions and rise in energy costs, arising from the regional conflict following the US and Israeli attacks on Iran in February 2026. Devastating drone and missile strikes between February and March 2026 by Iran damaged Bahrain’s energy infrastructure, by destroying the Bapco Sitra Refinery, Saudi oil pipeline, Awali oil field, and Hidd LNG Terminal. This destruction, paired with a maritime blockade and attacks on data centers in mid July 2026, is expected to cause a deep slowdown in the kingdom's energy and construction sectors. The industry’s growth in 2026 is also expected to slow from an annual rate of 3.5% in 2025, owing to high government debt, limited economic diversification, and the Middle East war, which has led to the closure of the Strait of Hormuz, disrupted supply chains, and increased construction material prices.
Over the remainder of the forecast period, the construction industry is expected to record an annual average growth of 4.8% between 2027 and 2030, supported by investments in transport infrastructure and renewable energy projects, in line with Bahrain’s Economic Vision 2030. The Vision includes the BHD11.3 billion ($30.1 billion) Strategic Projects Plan, which was unveiled in October 2021; it 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. In another boost to the industry, the government is aiming to construct 184.2km of monorail system by 2030 as part of the Integrated Public Transport Network program. It involves an investment of BHD3 billion ($8 billion) that will be implemented in four stages by 2030.
GlobalData’s Construction in Bahrain – Key Trends and Opportunities to 2030 (H2 2026) report provides detailed market analysis, information, and insights into Bahrain’s construction industry, including:
– Bahrain’s construction industry's growth prospects by market, project type and construction activity
– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Bahrain’s construction industry
– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Bahrain. It provides:
– Historical (2021–2025) and forecast (2026–2030) valuations of the construction industry in Bahrain, featuring details of key growth drivers.
– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
– Listings of major projects, in addition to details of leading contractors and consultants
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