Robust growth predictions and significant investment in infrastructure are boosting confidence in Bahrains construction sector, reports Global Arab Network.
The recent announcement that a new steel processing plant will be built in the Kingdom is said to have further boosted sentiment.
Bahrain's construction industry is an essential component in the country's economy, contributing an average of 9.5 per cent to GDP over the past three years. Housing makes up 51 per cent of the industry, with retail, office space and infrastructure making up the remainder.
The global financial crisis saw a significant slowdown in the sector as demand slumped and oversupply hit high-end real estate and commercial space.
But a report by Business Monitor International has forecast sector growth of nearly seven per cent in 2010 with US$80bn worth of infrastructure projects already under way.
Bahrain's GDP is expected to expand by four per cent this year and nearly five per cent in 2011, spurring on the construction sector.
The state has also increased spending on infrastructure projects and low-cost housing developments, with plans to build up to 5,000 residential units. Spending on the Kingdom's road network and power and water grids will also be ramped up.
Industry analysts say the overall improvement in both the regional and global economy is creating
demand for building supplies, in particular steel, placing Bahrain in competition with other countries in the region for materials.
To that end, a US$1.2bn project to build a steel plant was launched earlier this year by United Steel. It is hoped that the facility will become a vital link in the supply chain for Bahrain's building industry in the future.
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Robust growth predictions and significant investment in infrastructure are boosting confidence in Bahrain's construction sector, reports Global Arab Network.
?
The recent announcement that a new steel processing plant will be built in the Kingdom is said to have further boosted sentiment.
?
Bahrain's construction industry is an essential component in the country's economy, contributing an average of 9.5 per cent to GDP over the past three years. Housing makes up 51 per cent of the industry, with retail, office space and infrastructure making up the remainder.
?
The global financial crisis saw a significant slowdown in the sector as demand slumped and oversupply hit high-end real estate and commercial space.
?
But a report by Business Monitor International has forecast sector growth of nearly seven per cent in 2010 with US$80bn worth of infrastructure projects already under way.
?
Bahrain's GDP is expected to expand by four per cent this year and nearly five per cent in 2011, spurring on the construction sector.
?
The state has also increased spending on infrastructure projects and low-cost housing developments, with plans to build up to 5,000 residential units. Spending on the Kingdom's road network and power and water grids will also be ramped up.
?
Industry analysts say the overall improvement in both the regional and global economy is creating
demand for building supplies, in particular steel, placing Bahrain in competition with other countries in the region for materials.
?
To that end, a US$1.2bn project to build a steel plant was launched earlier this year by United Steel. It is hoped that the facility will become a vital link in the supply chain for Bahrain's building industry in the future.
