Dubai- Massader News
Bahrain’s construction industry can expect to grow by 2.1% in 2021, driven by investments in infrastructure, oil and gas and in renewables, according to a report released by the analytics firm, GlobalData, according to Al Arabiya English.
‘Construction in Bahrain – Key trends and opportunities to 2025’, reveals that the country’s construction industry is expected to grow at an average rate of 4.3% between 2022 and 2025. This will be supported by investments on the development of the country’s overall infrastructure in line with its economic vision 2030.
The company said construction output contracted by an estimated 0.2% in real terms in 2020 as the industry faced disruptions due to the COVID-19 pandemic and movement restrictions to prevent its spread.
Bahrain’s Oil price drop further compounded this problem as Bahrain is highly dependent on oil revenue.
“Despite economic diversification efforts, hydrocarbons still account for more than 70 percent of fiscal revenue and, as a result, the public finances are vulnerable to oil price volatility,” Dhananjay Sharma, Analyst at GlobalData said.
“The IMF’s forecast of a rise in oil prices by 21 percent in 2021 offers respite to Bahrain’s Government as it would facilitate further investments in the industries, energy and utilities and infrastructure sector, which would help in the government’s diversification efforts,” he concluded.
Tencent Cloud, the cloud computing arm of Chinese technology giant Tencent Holdings, on Monday announced it will launch an internet data center in Bahrain by the end of 2021, as reported by Al Arabiya English.