Bahrain, population 1.7 million, offers significant opportunities for construction firms given the level of investment in infrastructure by the government, the private sector and the Gulf Cooperation Council (GCC) Development Fund.

It has had few covid restrictions directly affecting its construction industry, and is one of the world’s most highly vaccinated countries. The industry has proven resilient, despite an economic downturn due to the pandemic as Bahrain’s overall economy contracted by 5.4% in 2020. The construction sector is expected to grow by 2.1% this year, after a 0.2% contraction in 2020, according to a report by analytics firm GlobalData. For example, 22 tenders were awarded in Q1 2021 by the Tender Board, worth US$1.6bn, up 23% from Q1 2020.

Funding for infrastructure and construction projects comes from the government, the private sector, and grants from the GCC Development Fund. As the Bahrain government is reliant on oil revenues, the IMF forecast of a significant rise in oil prices in 2021 should lead to further investments in infrastructure, oil and gas, and renewables, in line with Bahrain’s Economic Vision 2030 agenda.

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