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A major contributor to employment and GDP, the Bahraini construction sector has continued to expand in recent years, despite slower regional growth. This performance continued into the first half of 2018 with an uptick in activity, supported by a series of major infrastructure projects, in part financed by neighbouring GCC states. Furthermore, with demand for transportation and industrial facilities set to rise and a number of new projects in the pipeline, the sector appears set to remain busy over the coming years, despite constraints on the government’s capital expenditure budget. This chapter contains interviews with Sheikh Mohammed bin Khalifa Al Khalifa, CEO, Real Estate Regulatory Authority; and Mohammed Khalil Alsayed, CEO, Ithmaar Development Company.

By utilising technology to maximise value from existing reserves and investing in exploration, Bahrain’s energy sector is working to maintain and even increase levels of oil and gas production. Efforts in this direction have been helped significantly by the recent discovery of a large-scale, unconventional oil and gas reserve, which could substantially boost output over the coming decade. Officials are also moving to upgrade oil refinery and hydrocarbons import infrastructure, as well as expand the use of renewables and energy efficiency initiatives in the utilities sector, in part to free up locally produced gas for industry. This chapter contains interviews with Sheikh Mohammed bin Khalifa bin Ahmed Al Khalifa, Minister of Oil; Pete Bartlett, CEO, Bahrain Petroleum Company; and Sheikh Mohamed bin Khalifa Al Khalifa, CEO, Banagas.

Bahrain is home to a dynamic transport sector, including one of the Gulf’s oldest airlines and a causeway linking the kingdom to Saudi Arabia, the region’s largest economy. A second such link is in development, and soon the kingdom will also be connected by rail to the GCC train network. In addition, it will gain an expansive urban light rail system, a new airport and a revitalised national aircraft fleet. Bolstered by such projects, the sector is expanding. The transport and communications industry grew by 5.4% in 2017 in real terms, which was faster than the overall GDP growth of 3.8% and an increase from 2.5% the previous year. This chapter contains interviews with Mohamed Al Binfalah, CEO, Bahrain Airport Company; and Krešimir Kučko, CEO, Gulf Air.

The growth of new firms and the consolidation of older players are helping the sector advance. With 36 insurance and reinsurance companies in operation as of December 2017, Bahrain’s insurance sector is well developed, particularly when taking into account the size of the economy by both GCC and emerging market standards. The market comprised 14 conventional locally incorporated firms (including two reinsurers), 12 branches of foreign conventional firms (including three reinsurers), and eight takaful (Islamic insurance), firms (including two re-takaful, or Islamic reinsurance, firms). The market also includes 32 insurance brokers and 25 firms licensed to operate outside of Bahrain.

In light of its history as a regional financial hub, and the presence in the country of several major international Islamic financial institutions and support bodies, Bahrain has a well-developed, sharia-compliant financial services sector. The Islamic banking and takaful (Islamic insurance) segments have been posting healthy growth in recent years, though profit margins in each are under greater pressure than in their conventional counterparts. Both segments are also witnessing a trend towards consolidation, which industry players say should help create stronger institutions better able to invest in expansion and technological development. The kingdom is a major global centre for the Islamic finance segment, and is home to four standard-setting institutions and infrastructure providers.

In light of its history as a regional financial hub, and the presence in the country of several major international Islamic financial institutions and support bodies, Bahrain has a well-developed, sharia-compliant financial services sector. The Islamic banking and takaful (Islamic insurance) segments have been posting healthy growth in recent years, though profit margins in each are under greater pressure than in their conventional counterparts. Both segments are also witnessing a trend towards consolidation, which industry players say should help create stronger institutions better able to invest in expansion and technological development. The kingdom is a major global centre for the Islamic finance segment, and is home to four standard-setting institutions and infrastructure providers.