Bahrain Construction Market Size was valued at USD 8.6 Billion in 2022. The Construction industry is projected to grow from USD 8.96 Billion in 2023 to USD 12.56 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.30% during the forecast period (2024 - 2032). The rise in urbanization and a growing number of construction projects are the main market drivers anticipated to propel the construction market in Bahrain.
Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review
The rising construction in commercial, residential, industrial, and infrastructure categories of Bahrain is boosting the expansion of the market in the region. The construction industry witnesses a rise in demand for different services, materials, and skilled labor, which translates into a vibrant market characterized by increased competition and innovation due to the striving of construction firms in order to secure contracts and meet the growing demand of clients. Further, employment opportunities are generated, investments are made, and productivity in the sector is improved due to the growth of construction projects. The symbiotic relationship between construction and related sectors generates a ripple effect throughout the economy, boosting the favorable business environment. Additionally, the growth of construction activities attracts FDI and strengthens its position as a regional hub for real estate development and infrastructure projects.
Furthermore, the commitment of the government to foster a conducive business environment via regulatory reforms, strategic investment, and streamlined permitting processes further boosts the confidence of investors and fuels construction activity. The technological innovation and sustainability practices in the industry boost construction in Bahrain. The market players look to optimize resources, improve project efficiency, and minimize environmental impact; there is a rising adoption of cutting-edge technologies like BIM, prefabrication, and renewable energy solutions. The development of iconic landmarks, world-class amenities, and advanced transportation networks contributes to the dynamic and progressive image of the country. Moreover, the enhanced infrastructure and urban development initiatives improve the quality of life for residents, fueling social cohesion and community well-being. Thus, driving the Construction market revenue.
The Bahrain Construction market segmentation, based on construction type, includes Residential Construction, Commercial Construction, Industrial Construction, and Infrastructure Construction. The residential construction segment dominated the market due to the rapidly growing population and urbanization of Bahrain. With the rising demand for housing due to population growth, growing income levels, and inward migration, residential construction projects include a substantial portion of the construction sector's activity. Further, the government's initiative helps promote affordable housing and urban development, attracting both international and domestic investors. Therefore, with the continuous demand for housing, the segment is anticipated to sustain its position in the market.
Construction Sector Insights
The Bahrain Construction market segmentation, based on the construction sector, includes Private Sector Construction and Public Sector Construction. Public sector construction dominates the market as government-led projects account for a significant portion of the industry activity. This sector ranges from large-scale infrastructure developments to social housing projects, shaping the landscape of construction activity in the country. Further, the government contract provides stability and long-term prospects for construction firms, incentivizing them to participate in bidding processes and project execution. Also, private sector construction is growing at a steady rate due to the rising population, expanding tourism, and surging disposable income, boosting the demand for residential, commercial, and mixed-use projects.
Figure 1: Bahrain Construction Market, by Distribution Channel, 2023 & 2032 (USD Billion)
Source: The Primary Research, Secondary Research, MRFR Database and Analyst Review
With its strategic location in the Gulf region, Bahrain is a key hub for trade, finance, and tourism, driving demand for different construction projects. The government's Vision 2030 initiative focuses on infrastructure development, urban regeneration, and sustainable growth, offering a roadmap for the construction sector's expansion. Major projects like the Bahrain International Airport expansion, the Bahrain Metro, and the North Manama Causeway contribute to the construction market's vibrancy. Additionally, Bahrain's construction market benefits from a favorable business environment characterized by political stability, robust regulatory frameworks, and ease of doing business. The government's commitment to attracting foreign investment further bolsters the sector, with partnerships and joint ventures playing a significant role in project execution. Moreover, Bahrain's skilled workforce and advanced engineering capabilities position it as a competitive player in the construction market regionally and internationally. However, challenges such as geopolitical tensions, fluctuating oil prices, and environmental concerns pose potential risks to the market's growth.
Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Construction market grow even more. Market participants are also undertaking different strategic activities to extend their footprint, with important market developments including contractual agreements, new product launches, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and sustain itself in a more competitive and rising market climate, the construction industry must offer cost-effective items.
Major players in the Construction market are trying to increase market demand by investing in research and development operations, including Arabian Gulf Construction Co. W.L.L., Nass Corporation B.S.C, Haji Hassan Group, Almoayyed Contracting Group, Ahmed Mansoor Al A’ali Group, Al Hassanian Company, Murray & Roberts Cementation Company Ltd., Bahrain Contracting Company W.L.L, Edmah, Al Kobaisi Group.
Arabian Gulf Construction Co. W.L.L.
Nass Corporation B.S.C
Almoayyed Contracting Group
Ahmed Mansoor Al A’ali Group
Al Hassanian Company
Murray & Roberts Cementation Company Ltd.
Bahrain Contracting Company W.L.L
Al Kobaisi Group
In May 2023, there has been a contract amounting to $1.437 million awarded by the Ministry of Transportation & Telecommunications in Bahrain to Netherlands Airport Consultants. The Hague-based consultancy will conduct the first phase of research for the construction of Bahrain's greenfield airport which is up to $10 billion. The firm shall manage and integrate the works of other position-specific sub-consultants where it plays a central consulting role to the ministry.
In March 2021, the government disclosed the budget as provided for the Fiscal Years (FY) 2021-2022 (January 1, 2021, to December 31, 2022), which also includes project capital of BHD 600 million (No more than USD 1.6 billion) in two years’ time. This involves provision for expenditure on projects such as in the areas of infrastructure, housing, health, education, sports, culture, electricity, and water among others.
Apart from that, as part of the 2021 Economic Recovery Plan, Bahrain revealed more than 22 new infrastructure projects with a total cost higher than USD 30 billion, among them the construction of five artificial islands. It is envisaged that the bulk of these projects will be implemented using model of the public private partnerships. This Vision 2030 economic development strategy of the Kingdom is also in tandem with the aspect of construction that is currently being undertaken. The strategy promotes the economy’s diversification privatization and development of industries and training of national human resources in Bahrain so as to furnish construction, industry, housing, and communication systems.
In November 2022, as reported by local news Gulf Daily News, Bahrain will begin significant spending on the construction of a metro system, with preparations for this expected in the first quarter of 2023.
Residential Construction
Commercial Construction
Industrial Construction
Infrastructure Construction
Private Sector Construction
Public Sector Construction
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 8.6 Billion |
| Market Size 2023 | USD 8.96 Billion |
| Market Size 2032 | USD 12.56 Billion |
| Compound Annual Growth Rate (CAGR) | 4.30% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Construction Type, Construction Sector, and Region |
| Countries Covered | Bahrain |
| Key Companies Profiled | Arabian Gulf Construction Co. W.L.L., Nass Corporation B.S.C, Haji Hassan Group, Almoayyed Contracting Group, Ahmed Mansoor Al A’ali Group, Al Hassanian Company, Murray & Roberts Cementation Company Ltd., Bahrain Contracting Company W.L.L, Edmah, Al Kobaisi Group |
| Key Market Opportunities | Growing real estate sector and infrastructural development in the country. |
| Key Market Dynamics | Growth of investment by the government. Rising population foreign investments. |
Frequently Asked Questions (FAQ) :
The Bahrain Construction market size was valued at USD 8.6 Billion in 2023.
The market is foreseen to rise at the CAGR of 4.30% during the forecast period, 2024-2032.
The key players in the market are Arabian Gulf Construction Co. W.L.L., Nass Corporation B.S.C, Haji Hassan Group, Almoayyed Contracting Group, Ahmed Mansoor Al A’ali Group, Al Hassanian Company, Murray & Roberts Cementation Company Ltd., Bahrain Contracting Company W.L.L, Edmah, Al Kobaisi Group.
The residential construction category dominated the market in 2023.
The public sector construction category had the largest share of the market.
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