Bahrain Infrastructure Report
Despite being highly vulnerable to disturbances in Saudi Arabia’s market, Bahrain’s economy is much more diversified than Saudi Arabia’s, and has a relatively solid and resilient financial sector. Bahrain’s economy has continued to demonstrate significant resilience throughout the period of depressed oil prices. The non-oil economy has been at the forefront of economic growth in Bahrain ever since the second half of 2014, while the oil sector either marginally contributed to the growth or even lagged behind (as in 2015). According to Bahrain Economic Development Board (EDB), future growth will be driven by a high level of continuity in the non-oil economy, and the commitment of regional governments and investors to long-term projects. The non-hydrocarbon sector is expected to remain around 3.4% in 2016 and 3% in 2017, underpinned by construction, manufacturing, tourism and social and personal services.
Bahrain Economic Outlook
|Real GDP growth (%)||4.5%||2.9%||2.9%||2.5%||2.2%|
|Nominal GDP growth (%)||2.9%||-4.8%||4.8%||7.6%||5.6%|
|Inflation (CPI %).||2.8%||1.8%||3.8%||2.0%||2.0%|
|Current account (% GDP)||4.5%||-0.2%||-2.7%||0.0%||1.2%|
|Fiscal balance (% GDP)||-3.6%||-12.5%||-13.0%||-10.5%||-8.9%|
Source: Bahrain Economic Development Board
Amid declining revenues from the energy sector, Bahrain is pushing ahead with new projects to stimulate growth. MEED Projects in mid-June estimated the overall project pipeline in Bahrain at USD 72.7bn, 4.7% higher than last year’s. Of this, a large pipeline of "strategically significant" priority infrastructure projects carried out by the government, the GCC Development Fund, and the private sector was estimated at around USD 32 billion.
Top Bahrain Infrastructure Projects'
|Project Name||Project Value (USD mn)||Completion|
|Albilad - Water Garden City||6,600||2020|
|BAPCO - Sitra Refinery Upgrade and Expansion||5,000||2020|
|Alba - Aluminium Smelter Line 6||3,500||2019|
|Eagle Hills Diyar - Marassi al Bahrain development||3,000||2017|
|CBCORP Bahrain - Marsa Al Seef||2,500||2018|
|Arabtec Construction and TAV - Bahrain Airport Modernization||1,100||2020|
|Bahrain EWA - Power Grid development project||750||2017|
|GPIC - Manama Ammonia and Urea Plant||700||2019|
|NOGA - LNG Import Terminal||651||2018|
|Gulf Holding Company - Villamar Residential Complex||650||2017|
Whispering Bell is a leading financial and risk management consultancy advising clients in high-risk environments throughout the Middle East and North Africa. We establish an in depth understanding of the political, economic, and security environments in which our clients operate. Get in touch with our business advisory team for Bahrain requests or other countries within the MENA region.
Download the report