Contractors in Bahrain’s construction industry are expecting a rebound soon, with new projects worth $1.628 billion (BD614 million) by 2012, according to a new report.
The figures would be up from $1.223 billion (BD461 million) last year, said international market research firm Research and Markets.
‘There was a huge slump in the Bahrain construction industry due to the effects of the global recession in the Middle East in the last few years,’ it said in its Bahrain building construction industry overview.
‘But there are now signs it is on the mend, with moderate growth expected in the next two years.’
It said between 2008 and last year, contract awards fell from $2.199 billion (BD829 million) to $1.223 billion (BD461 million) – a fall of $976 million (BD368 million).
‘Bahrain’s construction industry has emerged as one of the biggest victims of the global recession in the Middle East,’ said the report.
‘Bahrain is touted as the financial and commercial hub of the Middle East due to its openness to trade and its good links with its counterparts.
‘It is among the few countries in the GCC that have witnessed positive economic growth amid the global economic slowdown in the latter part of last year and early this year.
‘However, owing to its openness, the country and its construction industry have been highly vulnerable to the adverse effects of the global economic slowdown.’
Among some of the biggest projects in Bahrain at the moment are the Bahrain Bay Development, featuring the country’s first Four Seasons hotel, and the $6 billion (BD2.2 billion) Durrat Al Bahrain project – a mixed-use 20 square kilometre city.
The report explores factors that shape the growth of Bahrain’s construction industry through an assessment of political, social, economic, technological, legal and regulatory as well as environmental factors that shape its growth path.
It also summarises the probability and impact of these factors on the industry.