Bahrain Transportation Infrastructure Construction Market – Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Bahrain Transportation Infrastructure Construction Market – Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Bahraini transportation infrastructure construction market is expected to register a growth rate of over 3% during the forecast period of 2022-2027.The COVID-19 had a meager impact on the Bahraini construction sector in 2020, during which it contracted by 0.9%. The pandemic did not affect the transportation infrastructure construction market, as the Bahraini government implemented continuous investments, like the USD 3.5 billion King Hamad Causeway transportation infrastructure project, USD 2 billion Bahrain Metro Project, USD 1.1 billion Bahrain International Airport Modernization Program, and road and sewerage infrastructure projects estimated at USD 900 million.Bahrain opened bids for the old airport terminal building demolition in December 2021, which included crushing the last portion of the existing terminal building with all associated facilities so that the future development of the area connects with the modernization program. For this, the construction ministry of works approved building contractors graded with AA, A, and B.Bahrain planned a massive program of infrastructure development, with 22 projects worth over USD 134 billion, out of which eight will be for road works. This is likely to create a huge demand for transportation construction companies.Bahrain Transportation Infrastructure Market TrendsGovernment Initiatives and Rising Investments are Driving the Market

• The economy here is more diversified than in other GCC countries, and strong government initiatives to invest in major construction projects are driving the sector. Private contractors have benefitted from the expansion and construction projects with the government’s Economic Vision 2030 plan in sight.
• The cost of setting up and running a construction project in Bahrain is very low compared to other GCC countries. Bahrain is a ‘free zone,’ which allows 100% foreign ownership of businesses and real estate and free movement of profits, capital, and dividends for the investors.
• The country is working on improving fast connectivity so that people and goods can have quick movement from and to Bahrain. As part of the Gulf development fund package, GCC countries funded USD 10 billion for transport infrastructure.
• A Bahraini airport company started with designed plans to develop the cargo village project at the Bahrain international airport. This is a key project as it supports the logistics sector that launched recently. It makes Bahrain the fastest multi-modal logistics hub, which reduces 40% cost with only a 2-hour turnaround time for all containers so that products can reach customers in half the time.

Growth of Urban Population

• The rapid growth of continuing urbanization is a major driver of transportation infrastructure investment. As per the World Bank, in 2020, the world population reached 1.70 million.
• In 2020, the urban population accounted for 89.5%, and it is expected to reach 95% by 2035.
• As the share of the urban population continues to grow, the growth of transport infrastructure is also required to connect them in the urban areas in Bahrain.
• Companies can use the latest and emerging technologies to improve public services (such as mobility and well-being), interact more effectively with people, boost productivity, and solve environmental and sustainability issues.

Bahrain Transportation Infrastructure Market Competitive AnalysisThe market is relatively fragmented, with a large number of local players, including Projects Holding Company WLL, Delta Construction Co., Bahrain Motors Company WLL. Al, Hassanain Company WLL, Kooheji Contractors WLL, and Eastern Asphalt and Mixed Concrete Co. as the major players. The demand for sustainability and technological advancements in the transport infrastructure construction market is increasing, and companies in the region are expected to adapt and remain competitive.Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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