Following the domestic unrest in 2011 and more recently with the fall in oil prices, GCC funds are likely to spur Bahraini growth as its economy faces an uncertain period.

A number of major road projects as well as the airport expansion, which are all financed by GCC development funds have emerged as the small island nation looks to come out of the financial crash of 2008 -2009 as well as civil unrest in 2011.

An average of about BD50m ($135m) a year will be invested in key GCC-funded road and highway projects in Bahrain.

The Ministry of Works, which is overlooking the procurement process for all major road projects in Bahrain, has also confirmed that GCC-financed projects must be awarded to joint ventures incorporating at least one local partner from the respective GCC country providing the funding.

Major road projects being financed by GCC funds in Bahrain include:

• The Busaiteen link (Saudi Arabia)
• Sheikh Jaber highway (Kuwait)
• Sheikh Zayed highway (Abu Dhabi)
• Al-Fateh highway upgrade (Kuwait)
• North Manama causeway (Saudi Arabia)

Further to this is the $1.1bn expansion of Bahrain’s International airport, which is being funded by Abu Dhabi.

There are also plans to expand the capacity of the King Fahd Causeway between Bahrain and Saudi Arabia, and with the King Fahd Causeway Authority taking charge of the project it is likely to be another Riyadh-funded project.

In addition to this, during MEED’s Bahrain Infrastructure and Finance conference, it was revealed that Manama is considering a light rail network for the country, which could be another opportunity for GCC funds to continue to support transport and infrastructure in Bahrain.

Tentative plans include 22 kilometres of elevated double track, with 19 stations and an initial capacity to handle 8,000 passengers. There will be built-in flexibility to allow for expansion. If the project for the light rail system moves ahead, the plans call for it to be completed in 2022.

GCC support is being led by Saudi Arabia, the UAE and Kuwait in what seems to be a political move to ensure the stabilisation of Bahrain.

Following Saudi Arabia’s recent military campaign in Yemen, it seems Riyadh is looking to focus on Bahrain’s development in order to avoid a repeat of street protests led by the Shia population in 2011.