Bahrain Transport

Plans for increased spending on infrastructure developments are set to support further growth in Bahrain’s industrial sector via improved transport links and the construction of new large-scale facilities. However, falling oil revenue may impact funding availability for some capital works, potentially cooling long-term prospects in the sector.

As part of plans to tackle delays on the King Fahd causeway, Bahrain is taking steps to reduce waiting times and ease congestion on its road link with Saudi Arabia while larger measures are under consideration.

With a flurry of new infrastructure projects, the government is selling Bahrain’s regional connectivity as a key attraction for foreign investors. While the island Kingdom may not compete for east-west traffic with global transit centres like Dubai, Doha and Istanbul, Bahrain is carving out a role as a gateway to the GCC markets.

The Kingdom strengthened its role as a hub for trans-shipment services in the Northern Gulf markets last year, buoyed by Saudi Arabia’s growing market. However, while the expansion of these services spells good news, rising demand has also produced challenges.

A possible merger between the Kingdom’s two airlines, combined with increasing hotel occupancy rates and a rise in traffic at the Bahrain International Airport, are proving promising for the aviation industry’s expansion.

Enhancing surface transport connectivity to neighbouring countries, the region and the rest of the world is a central priority for Bahrain. In addition to the development of internal transportation, the government has identified the importance of new road and rail links to Saudi Arabia and Qatar to strengthen the country’s trade position and support its economic diversification.