Bahrain Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2030 (H1 2026)
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The Bahrain’s construction industry is expected to grow by 3.5% in real terms in 2025, supported by public and private sector investment in industrial, commercial, and energy construction projects. According to the Central Informatics Organization of Bahrain (CIO), the value-add of the construction industry grew by 4.4% year on year (YoY) in Q3 2025, preceded by Y-o-Y growth of 2.7% in Q2 and 5.4% in Q1 2025. Growth in 2026 is also expected to be supported by the budgetary allocation as part of the State Budget FY2026 (January 1, 2026, to December 31, 2026) which includes total public expenditure of BHD8.9 billion ($23.7 billion); of which BHD4.5 billion ($12.1 billion) for FY2026. However, high wage costs, and declining construction loans are expected to pose significant downside risk to the industry’s outlook in 2026. 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 4.7% YoY in the first eleven months of 2025, preceded by an annual decline of 2.7% in 2024.
Over the remainder of the forecasted period, the construction industry is expected to record an annual average growth of 5% between 2027 and 2030, supported by investments in transport infrastructure and renewable energy projects aligned with Bahrain’s Economic Vision 2030. Vision 2030 includes the BHD11.3 billion ($30.1 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. 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 the Bahrain – Key Trends and Opportunities to 2030 (H1 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
Reasons to Buy
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Assess market growth potential at a micro-level with over 600 time-series data forecasts
Understand the latest industry and market trends
Formulate and validate business strategies using GlobalData's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors
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