By SOMAN BABY<\/p>\n
BAHRAIN’S construction industry is bracing for a crisis, with sources predicting thousands of job losses.<\/p>\n
Industry leaders predict a major slump in the second half of the year, owing to the global economic crisis.<\/p>\n
They also blame increased costs of materials, labour fees and rocketing salaries for skilled professionals.<\/p>\n
Sources said thousands of expatriate labourers could be sent home, with investment drying up in new projects.<\/p>\n
The new crisis follows a crippling cement shortage which hit the industry last year.<\/p>\n
Bahrain Contractors Society chairman Nedham Kameshki said the society’s 250 members were closely watching the situation.<\/p>\n
“The society board will meet on Saturday and review the status of various construction projects in Bahrain,” he added.<\/p>\n
The industry will be hard hit in the second half of the year, said A A Nass group managing director and Bahrain Chamber of Commerce and Industry (BCCI) construction committee chairman Samir Nass.<\/p>\n
“Some of the ongoing projects will be completed, but people will be hesitant to invest in new projects,” he told the GDN.<\/p>\n
“The global economic crisis and drop in oil prices have affected our economy in general and the construction industry in particular.<\/p>\n
“We are preparing to face the crisis in the construction sector, which we expect to be hit hard by the second half of this year.”<\/p>\n
Though the prices of building materials have come down, many other costs have gone up, said Mr Nass.<\/p>\n
“The steel prices dropped heavily, but they have not yet reached the original level.<\/p>\n
“Cement prices have not come down to the expected level and we are still under the pressure of a quota system in its import.”<\/p>\n
With the introduction of new fees by the Labour Market Regulatory Authority (LMRA), the labour costs have gone up substantially, said Mr Nass.<\/p>\n
“The salary of engineers and project managers has gone up by 200 to 300 per cent,” he revealed.<\/p>\n
“Diesel prices have increased in Bahrain by 43pc, making fleet operations very expensive. All these make the construction market very competitive.<\/p>\n
“Many major construction companies may downsize their activities.”<\/p>\n
Mr Nass said he is not in a position to predict how the new scenario would affect the job market.<\/p>\n","protected":false},"excerpt":{"rendered":"
By SOMAN BABY BAHRAIN’S construction industry is bracing for a crisis, with sources predicting thousands of job losses. Industry leaders predict a major slump in the second half of the year, owing to the global economic crisis.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[96],"yoast_head":"\n