Bahrain sets May deadline for Madinat Salman residences

24 April 2025

Bahrain’s Ministry of Housing & Urban Planning has set 21 May as the deadline for a contract to construct 512 residential apartments on plots 15, 18 and 19 on Madinat Salman Island 12.

The tender notice was issued on 28 January this year.

Madinat Salman is a group of reclaimed islands located off the north coast of Bahrain.

The client also received bids for the project management consultancy contract in March.

The project is part of several schemes being developed by Bahrain’s Ministry of Housing & Urban Planning to address the kingdom’s housing demand.

Earlier this month, MEED reported that the client is seeking consultants to bid for a contract covering contract management and site supervision services for 507 villas in Madinat Al-Hidd – Village A2 and A3.

The tender notice was issued on 10 April, and the bid submission date is 4 June.

According to the official notice, the project is funded through the Kuwaiti grant under the GCC Development Programme to the Kingdom of Bahrain.

The economic output of Bahrain’s construction industry is expected to grow by 3.5% in real terms in 2025, supported by public and private sector investments in industrial, commercial and energy construction projects, coupled with a rise in the value of tenders awarded, according to a recently published report by GlobalData.

The total value of tenders awarded grew by 145.2% year-on-year in 2024, preceded by an annual growth of 114.1% in 2023, according to the Tender Board of Bahrain. However, high wage costs and declining construction loans are expected to pose significant downside risk to the industry’s outlook in 2025.

According to regional projects tracker MEED Projects, there were $2.8bn of contract awards in 2024 across all sectors, which includes construction, transport, oil and gas and power and water.

According to the Central Bank of Bahrain, the average value of outstanding loans and advances to the construction and real estate sector fell by 2.3% in the first 11 months of 2024.

In the remainder of the forecast period, the construction industry is expected to record an annual average growth of 4.9% in 2026-29, supported by investments in transport infrastructure and renewable energy projects aligned with Bahrain’s Economic Vision 2030.

Vision 2030 includes the BD11.3bn ($30bn) Strategic Projects Plan, unveiled in October 2021, which encompasses 22 national infrastructure projects. Developments include the creation of five new cities by 2030: Fasht Al-Jarm, Suhaila Island, Fasht Al-Azem, Bahrain Bay and Hawar Islands.

Growth in the forecast period will also be driven by investments under the National Renewable Energy Action Plan, which targets a 30% reduction in carbon emissions by 2035, compared to 2015 levels, and aims to achieve net-zero emissions by 2060.

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Yasir Iqbal
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