Bahrain: High oil prices boost construction sector growth
High oil prices are helping to accelerate the momentum of Bahrain’s construction sector and its rising contribution to GDP is set to continue, says The Nass Group Executive, Sameer Abdulla Nass, whose Bahrain-based operation is involved in numerous major construction projects GCC-wide.
“High oil prices have boosted public and private sector confidence region-wide and one of the results has been increased spending on property development and other construction activity, creating a very buoyant and prosperous economic environment not only in Bahrain but also in several other markets in the GCC,” said Mr Nass.
Current high profile Bahrain projects in which the Group is involved include Alba's Line 5 expansion, the construction of the Bahrain World Trade Centre, the development of the Durrat Al Bahrain project and an extensive programme to lay cable for Bahrain’s Ministry of Electricity.
From a national perspective, the downstream benefits of a growing construction infrastructure at economic, industrial, governmental and social levels include increased business confidence, added attractiveness for inward investment, the creation of new business opportunities and the resulting improved employment opportunities.
“The simple fact is that Bahrain is in the midst of what we believe is a sustainable construction sector boom: in our estimation the value of new projects in the Kingdom - which are either in progress or which have been just announced – currently totals more than BD 4 billion (US$ 10.7 billion). With an order book confirmed up to 2007, and projects currently under tender in the range of around US $250 million, we believe this positive trend will continue for the foreseeable future,” he added.
Regional successes include Kuwait's Polyethylene Plant (EQUATE), Umm Bab Cement Plant in Qatar and Qassim Cement Plant in Saudi Arabia, among others.
“From our base in Bahrain, where we enjoy a significant market share for our construction businesses, we see an opportunity for rapid regional expansion. Our growth and diversification across the region will be supported by branches and affiliate offices in Saudi Arabia, UAE, Qatar and Kuwait. This regional presence already places us in a prime position to capitalise upon business opportunities that are also being created in these – and other - countries in the region,” added Mr Nass.
By expanding, diversifying and broadening its interests and alliances over its more than 40 year history, the Group – which employs almost 6,000 people - is today one of Bahrain’s premier industrial and commercial enterprises with operations throughout the Gulf region. Fully geared to meeting the challenges and opportunities ahead, its 36 specialised businesses and divisions command significant market share in the construction, manufacturing, trading, services and marine sectors.
The Nass Group’s headquarters are located in the Kingdom of Bahrain with affiliate offices in Saudi Arabia, Kuwait and Qatar and operations in the United Arab Emirates. It employs almost 6,000 people.
© 2005 Mena Report (www.menareport.com)
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