Working in tandem with its parent company, Mumtalakat, gives Edamah a strong backing to develop schemes across Bahrain. Its diversified portfolio of real estate, tourism and retail projects also helps cushion the company against any shocks that might arise in specific sectors.

The company acknowledges that it has been affected by the challenging conditions in the local property market, which has struggled to regain momentum following the social unrest that began in 2011. Rental rates in Bahrain slumped by a quarter in the first half of 2011 as the upheaval deterred foreign investors and companies.

However, analysts say the market is now seeing a rise in foreign investment from the GCC, which perceives the market to have bottomed out. A promising sign for Edamah is that the total value of real estate transactions in Bahrain grew by 46 per cent in 2012, compared with 2011. Residential land prices are also gradually rising and some areas have seen 10 per cent year-on-year growth in house prices.

The country’s tourism sector was also damaged in the wake of the social unrest, which caused the cancellation of the Formula 1 Grand Prix, Bahrain’s best known tourist attraction. But the return of the event has helped spur the kingdom to accelerate its tourism proposition this year.

Bahrain’s proximity to Saudi Arabia, its history as a business hub and its sporting and leisure attractions remain key factors in driving future tourism receipts.

According to the UAE’s Alpen Capital, Bahrain’s hospitality market is expected to grow at a compound annual growth rate of 18.8 per cent between 2011 and 2016. However, further social unrest would dampen any momentum in the country’s tourism sector.