Real Estate Sector in Bahrain is Booming!!
Real Estate in Bahrain is booming!!
Economic growth in Bahrain has shown a consistent resilience, by succeeding in accelerating economic diversification in the kingdom which provides abundant opportunities for the country’s construction sector and other non-oil sectors such as infrastructure, housing, and telecom.
According to Bahrain’s Economic Development Board the booming up of non-oil sectors in Bahrain in Q2 of 2016 was the reflection of pipeline project funded by the GCC Development Fund. Almost 85 % of the total projects commenced last year was on non-oil sectors like housing, electricity, and water, roads and airport. per the EDB’s Bahrain the growth in the non-oil sector of Bahrain’s economy reached an annual rate of 4.7% in the third quarter of 2016.
Overall, during the first three quarters of 2016 the Bahraini economy expanded by a real 3.6% over the corresponding period in 2015. Simultaneously, Bahrain’s non-oil economy gathered momentum despite of fluctuating oil prices and international volatility, leading to spiraling regional and global growth. There was strong expansion across a range of sectors, with particularly robust performances in social & personal services,
A large-scale infrastructure projects, which has accelerated over the last year, regained the momentum in the non-oil economy. Key projects include ALBA’s sixth pot line project, a power station deal, Airport Modernization Programme and a new Banagas gas plant. Above all investment by the GCC Development Fund is a boon for the non-oil sectors. The build-up of infrastructure projects is not only helping to stimulate short-term growth, but will also help underpin the long-term diversification and growth in productivity that we will need to support our prosperity in the future.
Considering the other factors which catalyze the growth of the non-oil sectors is the investment friendly laws and regulations which attracts more investors that helps the companies to do business and make it easier to grow.
Even against the backdrop of falling oil prices and cancellation or deceleration of infrastructure investments Bahrain’s construction businesses have continued to outperform most other sectors. The new real Estate development projects and master plan developments in Bahrain are key sign of surge in Bahrain economy. Moreover, the new agreements between Kingdom of Saudi Arabia and the Kingdom of Bahrain for the upcoming projects will also boost the Economic growth in 2017
Upcoming Key Projects
- Bahrain International Airport Expansion
The US$1.1 billion expansion project aims to increase the airport’s annual capacity to 14 million passengers. The new terminal building will occupy 220,000 square meters which is four times the size of the current airport.
- Bahrain Petroleum Company
US$5 billion upgrade and expansion of the Sitra Refinery which will boost the refinery’s processing capacity from 267,000 to 360,000 barrels per day with contracts planned to be issued in 2017.
- National Oil and Gas Authority (NOGA)
US$655 million offshore liquefied natural gas (LNG) terminal being commissioned and slated for opening in 2018.
- Alba
US$3 billion Line 6 smelting project which is set to make Alba the largest single smelter in the world when it opens in early 2019, adding 540,000 tons per annum to bring its output to 1.45 million tons per annum.
- Affordable Housing
Under a directive from King Hamad bin Isa Al Khalifa, 40,000 residential units are to be added to Bahrain’s social housing, with 25,000 to be delivered by 2018.
- Bahrain/Saudi Causeway
US$3 billion project is expected to comprise a new road and rail link between the two countries which will also connect to the proposed GCC rail network. and planned for completion in 2025.
- GCC Rail Network
GCC rail network is planned from Kuwait, through Saudi Arabia past Dammam to Bahrain, and from Dammam to Qatar and the UAE. This US$200 billion, project is expected to complete on 2020.
- National Stadium
An integrated sports stadium featuring a football pitch, underground shopping complex and Cineplex. The stadium, located in the Southern Governorate will accommodate up to 50,000 people.
- King Abdulla Medical City
Construction of a US$1 billion medical city spanning 1 million square meters of land in Bahrain is set to commence in 2017, located close to the Durrat Al Bahrain master plan project in the Southern Governorate.