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Middle East Regional Analysis 2016

k n o w l e d g e c e n t e r

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Contents

Contributors to the Middle East section of Knowledge Centre 2016: John Chavez, Stephen Connolly, Damien Gallogly, Damien Keane, Fergal Murphy, Helen Pender, Elaine Sheehan, Nancy Silvestre

©Linesight 2016

2 | Middle East

Middle East Market Review 3–4

GCC Contract Awards 5

Exchange Rates 5

Kingdom of Saudi Arabia

Kingdom of Saudi Arabia Market Review 6

Kingdom of Saudi Arabia Average Construction Costs 8

Kingdom of Saudi Arabia Main Contractors 9

Kingdom of Saudi Arabia Design Firms 9

UAE

UAE Market Review 10–12

UAE Average Construction Costs 13

UAE Main Contractors 14

UAE Design Firms 14

Qatar

Qatar Market Review 15–16

Qatar Average Construction Costs 17

Qatar Main Contractors 18

Qatar Design Firms 18

Bahrain

Bahrain Market Review 19

Bahrain Average Construction Costs 20

Bahrain Main Contractors 21

Bahrain Design Firms 21

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3 | Middle East

From a geopolitical standpoint, the Middle East fundamentally changed in 2015, with the implementation of the international agreement, Joint Comprehensive Plan of Action (JCPOA), between the five permanent members of the UN Security Council, Germany and the Islamic Republic of Iran.

From a regional business standpoint many were keenly watching the opportunities in opening trade with Iran. However the recent complete severing of diplomatic ties between the Kingdom of Saudi Arabia and Iran may slow, if not completely defer, the implementation of these trading plans. Key strategic questions particularly relating to the existing regional relationships may now need to be reconsidered.

This coupled with the ongoing challenges from 2015, of oil prices hitting an all-time low in December at USD $35 per barrel and commodities price reductions, for example steel down over 40%, will inevitably have an impact on the regional construction market. The ongoing civil war in Yemen also continues to affect each of the six-member Gulf Cooperation Council (GCC) countries.

Nevertheless, the GCC economy remains relatively stable, with the IMF projecting it to have a slow growth of 2.7% in 2016, compared to 3.2% in 2015.This year, the GCC has predicted that contracts will be awarded in excess of USD $140 billion – an approximately 15% drop in comparison to 2015. Saudi Arabia, UAE, Qatar and Kuwait are anticipated to award a total of USD $123.7 billion worth of projects, whilst Oman and Bahrain are expected to maintain their 2015 spending with a combined forecast of USD $16.3 billion. It should be noted that in 2015 projects awarded in the GCC were a little short of the USD $165 billion prediction.

Many developers have continued to invest and award projects accelerating their respective preparations for major regional events such as the Dubai Expo 2020 and 2022 FIFA World Cup in Qatar. A number of large developments in the UAE have already been awarded in 2016, including the USD $870 million Royal Atlantis Resort and Residences, the USD $380 million Palm Gateway, and the USD $180m One at Palm Jumeirah indicating that developers are taking advantage of the competitiveness in the construction market and are likely to continue to do so.

Middle East Market Review

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4 | Middle East

Progress on the GCC’s effort to build 34,000km of railway, including related infrastructure, which has been forecasted to cost USD$61 billion across the Middle East has been slow. Although metro projects in major cities are underway, the ability to recoup such a significant investment is affecting the implementation and resulting in delays. Utilities and infrastructure remain equally important and alternative methods as to how these projects can be financed, such as the public-private partnerships (PPP) model have been explored, indicating that major projects may continue to happen. However, considering the substantial investment involved and with only a few private financial institutions available, this is yet another challenge.

Governments remain likely to continue spending on social projects particularly in education, healthcare and the housing sectors to mitigate potential instability within the region.

The magnitude of fiscal challenges facing the governments of the GCC varies from country to country. Fortunately each country has low levels of debt and should be able to introduce economic fiscal reform as needed. The KSA government will fund its large budget deficit by raising 200bn Riyals from the domestic bond market. Riyadh had previously been funding the deficit entirely by running down its foreign reserves, approx. US$70bn of foreign reserves have already been liquidated (it still has approximately 6 years of reserves remaining). The UAE has already removed fuel subsidies and continues to consider both corporate and sales tax reforms.

2016 is set to be a challenging year within the GCC and the degree of fiscal reform required, remains somewhat unclear.

…oil prices hitting an all-time low in December at USD$35 per barrel and commodities price reductions will inevitably have an impact on the regional construction market.

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5 | Middle East

GCC Contract Awards, forecast vs. actual, 2015 ($bn)

200

180

160

140

120

100

80

60

40

20

0

Bahrain Kuwait Oman Qatar SaudiArabia

UAE GCC

2015 Forecast 2015 Actual

GCC Contract Awards, forecast vs. actual, 2015 ($bn)

Exchange Rates

Country Currency Symbol Conversion from $

Note Figures based on January 2016

Bahraini Dinar

Emirati Dirham

Saudi Riyal

Kuwaiti Dinar

Qatari Riyal

Omani Rial

BHD

AED

SAR

KWD

QAR

OMR

1 USD = 0.37

1 USD = 3.67

1 USD = 3.75

1 USD = 0.30

1 USD = 3.64

1 USD = 0.38

Bahrain

United Arab Emirates

Saudi Arabia

Kuwait

Qatar

Oman

Source www.xe.com

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6 | Middle East

Home to an estimated 15.9% of the world’s proven oil reserves Saudi Arabia is the single largest economy in the Middle East and North Africa in terms of area and GDP. The Kingdom has been growing at a rapid pace, sharply bolstered and shielded by strong oil reserves and determined Government plans for economic development through diversification and investment programmes.

Oil proceeds continue to account for 90% of export earnings, approximately 80% percent of government revenues and about 40% of GDP. The Kingdom is facing a huge deficit in its economy in 2016, due to shrinking revenue as the crude oil price fell from $100 a barrel in 2014 to an all-time low of under $30. As a result the Government has set out a 14% reduction in spending to SR840bn that would generate a forecast budget deficit of SR326bn over the year.

It has reduced its infrastructure budget by 60% compared to 2015 and will continue to invest in the development of new road networks and to a lesser extent railways and sea ports. Airport infrastructure works include the expansion of Riyadh’s King Khaled International Airport and Jeddah’s King Abdul-Aziz International Airport as well as the construction of a new airport in Madinah. In another attempt to reduce its deficit, the Government has reduced advanced payments from 20% of the contract value to 5%.

Expenditure in the construction sector continues to reduce, with the total for 2015 at $190.7bn, down from all-time high of USD $228 billion in 2014.

Growth in 2016 is predicted at 2.5%, decreasing to 1.5% by the last quarter. Despite the economy showing signs of slowing as the impact of the Government’s USD $800 billion stimulus package tapers off and falling international oil prices, there will still be a significant but controlled investment from the government in the construction sector. Construction of six new “smart” economic cities, planned at a cost of over USD $110 billion, to support facilities for 4.5m people has been scaled back. This development is part of an effort to help diversify the economy, and reduce the housing shortfall, of circa 2 million houses.

Kingdom of Saudi Arabia Market Review

It has reduced its infrastructure budget by 60% compared to 2015…

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7 | Middle East

Sectoral Budget Allocation

Key infrastructure projects planned to be awarded in 2016

2016 Sectoral Budget Allocation SRbn

Education & Training 192

Health & Social Development 105

Municipality Services 21

Military & Security Services 213

Infrastructure & Transportation 24

Economic Resources 78

Public Administration 24

Budget Support Provision 183

Total 840

Source Saudi Arabia Finance Ministry

Key infrastructure projects planned to be awarded in 2016

Project Project Owner Sub Sector Estimated Budget ($m) Status

Jeddah Metro: Green Line Jeddah Metro Company Rail 6 Prequalification

Jeddah Metro: Orange & Blue Lines Jeddah Metro Company Rail 30 Prequalification

Jeddah Metro: Red Line Jeddah Metro Company Rail 13 Prequalification

Jeddah Light Rail Transit Jeddah Metro Company Rail 6 Prequalification

Obhur Suspension Bridge Jeddah Metro Company Roads 4 Under bid

Mecca Metro: Phase 1(Lines B and C)–civils, package 1

Development Commissions of Mecca & Mashaaer

Rail 10 Under bid

Mecca Metro: Phase 1 (Lines B and C)–systems

Development Commissions of Mecca & Mashaaer

Rail 13 Under bid

Completion of Qasim-Mecca direct highway: Mecca portion

Transport Ministry Roads 6 Under bid

Completion of Tabuk-Medina highway: Medina portion

Transport Ministry Roads 4 Under bid

Source MEED Projects

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Kingdom of Saudi Arabia Average Construction Costs

All subject to site specifics, design and specificationAll exclude Land Acquisition Costs, External Works Costs & Professional FeesShell & Core only; with public areas finishedExcl. Super High Rise (Low / Medium = up to 15; High Rise +15; Super High Rise +45 storeys) Incl. FF&E; Excl. OS&EExcl. Medical Equipment

Notes

Source Linesight

(i) (ii)* ** *** ****

Commercial / O� ice Sector* / **

Residential Sector

Hotel & Leisure / Retail Sector

Manufacturing Sector

Parking

Health Sector ****

Cost Range US$

Developer Standard / Investment O� ices

Low Rise - Medium Rise

Medium Rise – High Rise

Owner Occupier Standard O� ices

Low Rise – Medium Rise


Medium Quality – Villa Units

Medium Quality – High Rise

High Quality – Low Rise Apartments

High Quality – High Rise

Regional Shopping Centre *

Budget / 3 Star ***

5 Star ***

5 Star Resort ***

Light Industrial

Heavy Industrial

Podium Car Parking

Basement Car Parking

District General Hospital

1,150

1,650

1,600

1,900

1,310

1,450

1,650

1,800

1,650

1,700

3,000

3,600

660

780

690

870

2,950

950

1,350

1,500

1,650

1,000

1,190

1,320

1,480

1,350

1,400

2,450

3,200

550

630

560

760

2,500

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m

per sq.m

per sq.m

Unit ToFrom

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9 | Middle East

Kingdom of Saudi Arabia Main Contractors

Kingdom of Saudi Arabia Design Firms

SAUDI BIN LADIN GROUP

AL RASHID TRADING & CONTRACTING CO. (RTCC)

AL AYUNI INVESTMENT & CONTRACTING CO.

AL HARBI TRADING & CONTRACTING CO.

ARABIAN BEMCO CONTRACTING CO.

AL SHOULA GROUP

ALMABANI GENERAL CONTRACTORS

AL FOUZAN TRADING & GENERAL CONSTRUCTION COMPANY

ABV ROCK GROUP

EL SEIF ENGINEERING & CONTRACTING

BAYTUR CONSTRUCTION & CONTRACTING

INTERNATIONAL CENTRE FOR CONSTRUCTION COMPANY (ICC)

SAUDI OGER

FREYSSINET SAUDI ARABIA

A.S. ALSAYED & PARTNERS CONTRACTING

SAUDI LEBANESE TAROUK CONTRACTING CO.

AL ARRAB TRADING & CONTRACTING

AL LATIFA TRADING & CONTRACTING

AZMEEL CONTRACTING ESTABLISHMENT

ABDUL RAHMAN SAAD AL RASHID & SONS (ARTAR)

FARE CONSTRUCTIONS - FAWAZ AL HOKAIR TRADING & CONTRACTING ESTABLISHMENT

AL HABTOOR LEIGHTON

AL RAJHI CONSTRUCTION (ARC)

TAV CONSTRUCTION

ARABTEC CONSTRUCTION

GODWIN AUSTEN JOHNSON

HOK

P&T GROUP

RAMBOLL

WME CONSULTANTS

WOODS BAGOT

SKIDMORE, OWINGS & MERRILL

AEDAS

AECOM

ARCADIS

ATKINS

BURT HILL

CH2M HILL

GENSLER

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10 | Middle East

With oil prices continuing to drop world-wide, and given the region’s historical dependence on an oil rich economy, few dispute the necessity for collective GCC curtailment on spending. Furthermore, the region’s most petrodollar-dependent countries do not anticipate the oil price to recover anytime soon. Even so, it’s not all despondence for Middle Eastern construction companies.

The impact of strong currency performance and the fall in the price of oil in the Middle East are acknowledged as leading contributory factors to the region’s relatively low construction cost. Although Dubai has just been ranked amongst the least expensive cities in the world while one of the most expensive cities in the Middle East in which to build, falling just behind Doha, it remains relatively stable, benefitting from access to inexpensive labour and energy. The falling oil prices which have led to a slow-down in the oil industry have resulted in labour and materials being more readily available within the commercial building sector.

Preliminary economic data suggests 2015 was a healthy year for the UAE, fuelled by an on-going momentum in non-oil activity. The UAE’s economy is one of the most diversified among the GCC countries, making it more resilient to falling oil prices with an emergent focus on “event-driven” construction in recent years. Major regional events, such as Expo 2020 in Dubai have produced a requirement for an influx of infrastructure projects for the Emirates.

Given the strong performance of the UAE’s non-oil economy and positive news coming from the industry, the outlook for 2016 could be described as cautiously optimistic. Although certainly not ‘boom-times’ the Emirates, in particular Dubai, have committed to investing in infrastructure to sustain economic growth. This is notably evident with the recent budget announced by the Government for approved spending of USD $12.bn in 2016, a 12% increase on the USD $11.2bn allocated in 2015. USD $4.6bn, or 37%, will go towards health, education, housing and community development, compared with USD $3.9bn for the same sectors in 2015. The increase in this year’s budget shows the diversified nature of the Dubai economy, with oil only providing 6% of its revenue.

The Emirates of Abu Dhabi and Dubai continue to remain the backbone of the UAE’s construction industry with both acting as the country’s dominant drivers of growth. Winning the bid to host the World Expo 2020 has proved lucrative for the construction industry and has provided several positive outcomes for the country’s growth as a whole. There are signs that large government-backed projects are being driven ahead.

UAE Market Review

The UAE’s economy is one of the most diversified among the GCC countries, making it more resilient to falling oil prices.

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11 | Middle East

Work on the 14.5 km extension to the metro linking Dubai to the Expo 2020 site is expected to begin in the first quarter of 2016, with tenders recently returned. Other projects such as the USD $870 Royal Atlantis Resort and Residences, Burj 2020 and the Palm Gateway tower scheme are all set to be awarded this year.

The renewed confidence in Dubai’s construction sector following the global credit crisis has seen the revival of stalled projects and the inception of new, ambitious mega projects such as the 139,354 m2 USD $1bn ICD Brookfield Place in the DIFC, with a scheduled completion of 2018 and the USD $545m Dubai Canal project including a 16-lane flyover bridge. In Abu Dhabi, detailed planning has been approved for the USD $1bn Reem Mall, also scheduled for completion in 2018.

In comparison the UAE property market in particular in the northern Emirates, is experiencing a decline. This is in contrast to 2014 and 2015 which saw a substantial increase in growth and prices, the first time since the property crash of 2008. The current decline in the rental market, in the face of rising supply in Dubai and Sharjah has undermined the overall rental market, which recorded a 2.3% drop in average rents during Q2 2015.

In January, the UAE Government launched Dubai Plan 2021, a scheme which will outline development in the Emirate over the next five years. The purpose of Dubai Plan 2021 is to bolster Dubai’s position as a global centre and destination following the success of the World Expo 2020 bid. This will mark the beginning of a new chapter of sustainable and systematic developments in vital sectors.

…the Emirates, in particular Dubai, have committed to investing in infrastructure to sustain economic growth.

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12 | Middle East

GCC Contract Awards, 2015 ($bn)

80

70

60

50

40

30

20

10

0

Bahrain Kuwait

2009 2010 2011 2012 2013 2014 2015

Oman Qatar SaudiArabia

UAE

GCC Contract Awards, 2015 ($bn)

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13 | Middle East

UAE Average Construction Costs

Commercial / O� ice Sector* / **

Residential Sector



Parking

Health Sector ****

Cost Range US$












Budget / 3 Star ***

5 Star ***

5 Star Resort ***

Light Industrial

Heavy Industrial

Podium Car Parking



1,200

1,700

1,575

1,875

1,300

1,500

1,600

1,790

1,620

1,670

2,970

3,550

650

770

680

850

2,900

900

1,300

1,475

1,625

975

1,200

1,300

1,450

1,320

1,370

2,420

3,150

530

620

550

750

2,450

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m

per sq.m

per sq.m.

Unit ToFrom


Notes

Source Linesight

(i) (ii)* ** *** ****

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14 | Middle East

UAE Main Contractors

ALEC

ARABIAN CONSTRUCTION COMPANY

AL JABER ENGINEERING AND CONSTRUCTION

AL FUTTAIM CARRILLION

AL NABOODAH

AL NASR CONTRACTING COMPANY

AL SHAFAR GENERAL CONTRACTING

ARABTEC CONSTRUCTION COMPANY

BAM INTERNATIONAL

BELHASA SIX CONSTRUCTION

BROOKFIELD MULTIPLEX

CHINA STATE CONSTRUCTION

CONSOLIDATED CONTRACTORS INTERNATIONAL COMPANY

EL SEIF ENGINEERING AND CONTRACTING

HABTOOR LEIGHTON GROUP

KHANSAHEB CIVIL ENGINEERING

LAING O’ROURKE

MURRAY AND ROBERTS

SALEH BIN LAHEJ CONSTRUCTION

SAMSUNG C & T

SSANGYONG ENGINEERING AND CONSTRUCTION

TAV CONSTRUCTION

ZSML

UAE Design Firms

AEDAS

AECOM

ARCADIS

ATKINS

ARCHGROUP

ARUP

BDP

BENOY

BROADWAY MALYAN

BSBG

BURT HILL

CH2M HILL

CONIN

DEWAN

GENSLER

GODWIN AUSTEN JOHNSON

HOK

KEO

KHATIB & ALAMI

NAGA ARCHITECTS

NORR GROUP

PRP/AI ARCHITECTS

P&T GROUP

RAMBOL

RED ENGINEERING

RMJM

SOM

WME CONSULTANT

WOODS BAGOT

WSP

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15 | Middle East

Qatar, despite being one of the smallest countries in the world, continues to dominate the list of countries with the highest income per capita (PPP), which based on the IMF’s estimate was more than US$146,000 in 2015. Petroleum and liquefied natural gas account for more than 50% of GDP, more than 70% of the state’s total government revenue and around 85% of its export earnings.

Its construction industry is reported to be the fastest growing in the region with numerous infrastructure projects coming online in preparation for the 2022 FIFA World Cup. However the race to build new roads, apartments, stadiums and hotels in time for the 2022 World Cup has driven up construction costs and has created bottlenecks at the Doha Port. The opening of the $7.4 billion (QR27 billion) Hamad Port marked a major economic milestone in 2015. This new development is expected to ease the bottlenecks at Doha Port which have restricted the volume of imports to the state’s capital.

The state’s commitment to a huge backlog of infrastructure projects is forecasted to sustain real GDP growth at an annual average of 3.8% in 2016–2020.

Qatar Market Review

Key Economic Indicators

2010 2011 2012 2013 2014 2015e 2016f 2017f 2018f 2019f 2020f

Nominal GDP ($bn) 125.1 169.8 190.3 201.9 210.1 192.1 192.2 212.1 232.7 251.1 267.5

GDP per capita ($) 76,413 99,431 103,606 98,710 93,990 78,829 73,725 77,857 83,724 89,472 95,310

Real GDP growth (annual change, %)

19.6 13.4 4.9 4.6 4 4.7 4.9 4.2 3.6 3.3 2.8

Government revenue (% of GDP)

35 38.7 45.1 52.2 47.4 40.2 34 30.9 30 29.1 28.1

Government total expenditure (% of GDP)

29 28.5 30.9 31.6 32.7 35.7 35.6 33.4 31.7 30.6 30

General government gross debt (% of GDP)

38.4 34.5 36 32.3 31.7 29.9 27.8 23.6 18.5 15.2 12.8

Current account balance (% of GDP)

19.1 30.7 32.6 30.9 26.1 5 -4.5 -2.7 -0.7 0.5 0.5

Inflation (%) 0.4 2.1 2.6 2.5 2.9 1.6 2.3 2.9 2.8 2.5 2.3

Population (million) 1.6 1.7 1.8 2 2.2 2.4 2.6 2.7 2.8 2.8 2.8

e=Estimate; f=Forecast. Source: IMF

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16 | Middle East

There has been an increase in the 2016 budget for major projects and a significant outlay for infrastructure, health and education sectors, as it projects revenue of QR 156bn and an expenditure of QR 202.5bn.

The Minister of Finance stated that the “main goal” during the preparation of the 2016 budget was to “ensure the completion and implementation” of major projects in key sectors along with projects related to the FIFA World Cup in 2022.

Project Project Owner Industry Contract Value ($m)

Main Contract Award

Expected Completion

Qatar Integrated Railway Project: Doha Metro: Systems, Rolling Stock and Track Work

Qatar Public Works Authority

Transport 4,129 2015 2018

Qatar Integrated Railway Project: Doha Metro: Gold Line: Tunneling Works

Qatar Rail Company

Transport 3,300 2014 2017

Qatar Integrated Railway Project: Light Rail Transit: Lusail Light Rail: Phase 2

Qatar Rail Company

Transport 2,722 2014 2018

Qatar Integrated Railway Project: Doha Metro: Green Line: Tunneling & Main Stations Works

Qatar Rail Company

Transport 2,520 2013 2018

Construction31%

Transport47%

Gas6%

Oil5%Water

5%Power3%Industrial

2%

Chemicals1%

Value of Planned Projects (Percentage of $111bn)

Source MEED Projects

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17 | Middle East


Notes

Source Linesight

(i) (ii)* ** *** ****

Commercial / O� ice Sector * / **

Residential Sector



Parking

Health Sector ****

Cost Range US$












Budget / 3 Star ***

5 Star ***

5 Star Resort ***

Light Industrial

Heavy Industrial

Podium Car Parking



1,200

1,700

1,650

1,950

1,330

1,310

1,700

1,850

1,790

1,980

3,280

3,790

730

1,150

730

900

3,600

1,000

1,400

1,550

1,700

1,150

1,210

1,400

1,500

1,460

1,520

2,680

3,250

580

840

620

780

3,280

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m

per sq.m

per sq.m.

Unit ToFrom

Qatar Average Construction Costs

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18 | Middle East

Qatar Main Contractors

AL JABER & PARTNERS QATAR


MIDMAC CONTRACTING

SIX CONSTRUCT QATAR

CONSOLIDATED CONTRACTORS COMPANY

CONSTRUCTION DEVELOPMENT COMPANY

GULF CONTRACTING COMPANY

HABTOOR LEIGHTON GROUP

HYUNDAI ENGINEERING & CONSTRUCTION

J&P GROUP

MURRAY & ROBERTS

PORR QATAR

QATARI ARABIAN CONSTRUCTION COMPANY

REDCO CONSTRUCTION AL MANA

QATARI DIAR

Qatar Design Firms

AECOM

ARAB ENGINEERING BUREAU

ARCADIS

ARUPN GROUP

ATKINS

BURO HAPPOLD

DC PRO

HILSON MORAN

KEO

RAMBOLL

RED ENGINEERING

TED JACOB

WME

WSP

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19 | Middle East

Covering just 760 square kilometers and with a population of 1.3 million people, Bahrain has traditionally been the smallest construction market in the GCC, accounting for fewer than 3% of the combined value of projects in the region. This is not surprising given the kingdom’s small population and low oil and gas reserves compared with its neighbours.

Despite low oil prices threatening to hinder Bahrain’s growth, world class luxury developments and multi-billion-dollar transport projects look set to fuel the growth of the construction sector. These investments are partly in the form of government spend and GCC funds to the amount of USD $10 billion over a 10 year period.

One of the major developments underway in Bahrain is the USD $1.1 billion investment for the upgrade to Bahrain International Airport. Financed by the Abu Dhabi Fund for Development, the expansion project is expected to boost capacity to 14m passengers a year when completed in 2020, bringing the Manama airport in line with other airports in the region.

Projects aiding Bahrain’s future expansion include the proposed King Hamad Causeway, the second bridge that will connect Saudi Arabia and Bahrain. This project will form part of the 2,200km long GCC rail network.

As part of the Bahrain 2030 Plan, Bahrain Bay Development, with almost 290,000sqm of residential, commercial and retail space, will become the central heart of the new Manama Region, connecting people directly from the airport. This development will eventually link to the King Fahd Causeway which carries 50,000 passengers to and from Saudi Arabia daily.

Bahrain continues to tackle the pressing housing shortage with at least five major housing schemes under construction as part of the country’s plan to build 40,000 homes. They include Northern Town and a 5,000-unit housing scheme planned in Sitra.

Bahrain Market Review

Despite low oil prices threatening to hinder Bahrain’s growth, world class luxury developments and multi-billion-dollar transport projects look set to fuel the growth of the construction sector.

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20 | Middle East

Bahrain Average Construction Costs

Cost Range US$

890

1,140

1,550

1,800

1,000

1,140

1,330

1,560

1,000

1,490

2,380

3,030

630

700

600

800

2,550

720

920

1,450

1,600

820

920

1,200

1,410

790

1,200

1,930

2,470

520

560

500

720

2,350

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m.

per sq.m

per sq.m

per sq.m.

Unit ToFrom


Notes

Source Linesight

(i) (ii)* ** *** ****

Commercial / O� ice Sector * / **

Residential Sector



Parking

Health Sector ****












Budget / 3 Star ***

5 Star ***

5 Star Resort ***

Light Industrial

Heavy Industrial

Podium Car Parking



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21 | Middle East

Bahrain Main Contractors

ALMOAYED CONTRACTING


CHARILAOS APOSTOLIDES (CHAPO)

CYBROC

GP ZACHARIADES

MOHAMMED JALAL CONTRACTING

NASS CONTRACTING

OLYMPIC CONTRACTING

SEBARCO

SIXT CONSTRUCT

Bahrain Design Firms

AECOM

AEDAS

ARCADIS

ATKINS

DWP

BENOY

DWP

HOK

KEO

SOM

WOODS BAGOT

middle east - linesight 6 | middle east home to an estimated 15.9% of the world’s proven oil...

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