Bahrain’s Projects Growth
Bahrain’s economic activity has shown signs of growth as the Covid-19 subsides. The projects market in the region has rebounded strongly and is pushing ahead with diversification efforts and new opportunities.
S&P Global Ratings has revised its outlook on Bahrain to stable anticipating government’s measures to reduce the budget deficit and benefit from support from other GCC sovereigns. The kingdom has benefitted from project funding from its neighbors, particularly Saudi Arabia and Kuwait. Fiscal reforms were announced to strengthen non-oil revenue and rationalize expenditure.
The projects market has recovered significantly from the low base of last couple of years. Over $15bn worth of projects are currently active in the region in the energy sector.
Energy demand stands to grow in the developing economy of Bahrain over a long term. Renewable energy is a key component of the country’s economic recovery plan.
The kingdom’s renewable energy target envisages 700 MW of solar, wind, and energy-from-waste generation capacity by 2030. It aims to bring 255 MW of solar generation capacity online by 2025 by using net metering, tenders for large-scale projects, and a renewable energy mandate for new buildings.
Bahrain strives to become a centre of clean energy excellence in line with the leadership’s vision to achieve the renewable energy goals, particularly of reaching zero-carbon neutrality by 2060.
The country is moving ahead with new upstream and downstream projects to maintain production capacity. Tatweer Petroleum, the upstream arm of Bahrain’s state energy enterprise Nogaholding, is committed for furthering development plans for hydrocarbon discoveries in the kingdom.
The company has made considerable expenditure on maintaining its own oil and gas production capacity and advancing exploration plans, awarding over $2bn worth of contracts over the past two years to deliver a number of key projects.
Despite the pandemic and economic burdens, the kingdom’s projects plan involving innovative PPP models will ensure growth for the times ahead.