Bahrain

The construction sector will be operating in a new environment starting next year when building regulations mandating the use of eco-friendly best practices are due to be implemented. However, the shift toward greater sustainability may prove challenging for some.

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.

The Kingdom’s economy is making steady progress towards regaining lost momentum following the global financial crisis and civil unrest in 2011. However, the recovery will need to be managed carefully if past losses are to be fully recouped.

The creation of a new multi-billion-dollar industrial city in Bahrain could soon be given the green light as the government steps up its efforts to build on its manufacturing base.

The Kingdom is encouraging some of its sharia-compliant banks to join forces to be better capitalised and equipped to deal with an increasingly turbulent and competitive global market.

The Kingdom’s real estate sector continues to experience difficulties, with the residential, office and commercial segments all seeing little activity in the first half 2012. However, as private developers reconsider several projects currently on hold and government infrastructure projects get underway, there is a general sense that the sector may be close to a turning point.