Construction & Real Estate
From The Report: Bahrain 2023
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Bahrain’s construction and real estate sectors contributed a combined 12.5% to GDP in 2022, with the two recording growth of 1.4% and 5.5% for the year, respectively. They are engines for job creation, as the country’s economic diversification agenda includes major infrastructure projects. The development of high-value sectors has resulted in significant construction activity, with new and existing businesses establishing and expanding factories and facilities. Bahrain’s economy makes it an attractive investment destination in the GCC, and its growing population means that there is a need for a greater volume and more diverse range of residential properties. A number of new affordable homes have hit the market in recent years, and the government continues to work with the banking sector to launch new mortgage products to help Bahrainis in the low- to middle-income brackets buy homes.

This chapter contains interviews with Ahmed Alammadi, CEO, Diyar Al Muharraq and Mohamed Abdulghaffar Al Kooheji, CEO, Kooheji Contractors.

Articles from this Chapter

Overview

Laying foundations: New developments and regulatory changes are expected to boost infrastructure and real estate projects
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Bahrain’s construction and real estate sectors contributed a combined 12.5% to GDP in 2022, with the two recording growth of 1.4% and 5.5% for the year, respectively. They are engines for job creation, as the country’s economic diversification agenda includes major infrastructure projects. The development of high-value sectors has resulted in significant construction activity, with new and existing businesses establishing and expanding factories and facilities. Bahrain’s economy makes it an…

Interview

Building the market: Ahmed Alammadi, CEO, Diyar Al Muharraq, on creating the conditions to attract investment in real estate
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Interview: Ahmed Alammadi, CEO, Diyar Al Muharraq Which factors are driving the recent growth in Bahrain’s residential property market? AHMED ALAMMADI: Bahrain’s real estate sector benefits from its competitive advantages and supply, leading to substantial demand. The sector has demonstrated consistent growth, with a steady increase in the number of real estate transactions observed each year. Notably, in the fourth quarter of 2022 there was year-on-year growth of 0.7%. Given its size and limited…

Analysis

Self regulation: Efforts are being made to provide greater oversight in the real estate sector and amend laws to strengthen ownership rights
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Having entered the Covid-19 pandemic with a relatively high level of economic diversification, the resulting drops in business and tourism activity pushed Bahrain’s vacancy rates up, which in turn put pressure on building owners. Despite the oversupply seen in the kingdom’s residential and commercial spaces, a government-led response and legislative reforms successfully accelerated the economic rebound that followed the pandemic-related downturn in 2020. New Authority Since the Real Estate Regulatory…

Interview

Building for the future: Mohamed Abdulghaffar Al Kooheji, CEO, Kooheji Contractors, on boosting development and implementing sustainable practices
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Interview: Mohamed Abdulghaffar Al Kooheji Which sectors are likely to drive demand for large-scale infrastructure and construction projects in the coming years? MOHAMED ABDULGHAFFAR AL KOOHEJI: The government’s push for privatisation in sectors such as health care and real estate can lead to growth opportunities. In this sense, the Ministry of Housing’s focus on real estate development will be a crucial driver of growth. Greater private sector participation in tourism can play a significant…