The building of the causeway between Bahrain and Qatar will link the two wealthiest nations in the Gulf region with Bahrain sandwiched in the middle, and could lead to ‘tremendous’ development opportunities, the report from real estate consultancy CB Richard Ellis says.
‘Regional and multinational firms will in future be able to set up in Bahrain and serve these two major markets from one central location,’ explained Mike Williams, senior director of CBRE Middle East.
The recent oil boom has resulted in increased economic activity in Saudi Arabia’s Eastern Province and is transforming the cities of Khobar and Dammam.
Also Bahrain is the preferred location for expatriates working in the three countries due to its affordability and more relaxed lifestyle, he added.
But analysts point out that problems with traffic and access to Bahrain’s Central Business District need to be resolved and purpose built office accommodation completed in the emerging office districts, before investment opportunities can be gauged accurately.
‘The construction industry in Bahrain is very non-transparent and there are problems with developers struggling with cash flow, which is then passed on to contractors.
Both developers and contractors are therefore under intense pressure but to date, few projects have been terminated as a result,’ the report says.
‘The pace of development may well slow down across the kingdom but it is still happening and as we emerge from this difficult economic period, we may find the industry to be leaner and healthier than it was before,’ it adds.
‘If construction, architecture or engineering companies can establish a foothold in Bahrain they will be well placed to serve development opportunities both here and in neighbouring countries in the future,’ it concludes.
