Path to Recovery
Positive momentum builds across Bahrain’s private sector
After a quieter stretch shaped by wider geopolitical uncertainty, Bahrain’s business landscape is beginning to recover. Across Manama, activity is gradually picking up across retail, services, and real estate, with customers and investors slowly returning to the market.
In an attempt to understand the road to recovery, The Daily Tribune spoke to several business owners, experts and entrepreneurs. Real Estate Eman Mohammed Al Mannai, a Certified International Property Specialist reflected on Bahrain’s real estate journey from the onset of the conflict.
“The real estate market has shown notable stability in recent weeks, operating on a “twospeed” recovery of high-end scarcity versus mid-market oversupply.” During recent regional tensions, activity saw a tactical pause rather than a sell-off, with buyers delaying decisions and sellers in areas like Juffair and Seef offering more flexible terms to secure deals.
By mid-April 2026, confidence is gradually returning, making it a more buyer-friendly market. Prime areas such as Bahrain Harbour, Reef Island, and Marassi Al Bahrain are recording price growth of 4%–7% due to limited supply, while Bahrain continues to offer strong rental yields of 8%–11% in select developments. The progression of the Bahrain Metro and expansion projects in Manama seafront also acts as a floor for prices, preventing any significant “war-time” dip.
SMEs
Beyond real estate, small retail and community-driven businesses are reporting a gradual pickup in activity, supported by stronger neighbourhood-level engagement.
Dona Maria Gemayel from Dona’s Wonders—winner of the 20th StartUp Bahrain Pitch, known for gluten-free, clean-eating desserts and meals - said that small businesses are finding strength in going local and working closely with nearby suppliers to stay operational despite ongoing challenges. Supported by Export Bahrain and strong customer loyalty, she said the business is not just surviving but growing with its community. “In difficult times, success belongs to those who stay rooted in their community,” she added.
And also Ashraf from Bake Home Bakery, known for custom cakes, brownies, and fast-turnaround DM-based orders said, “While sales have dipped in recent weeks, we hope things will pick up in the coming weeks.” Meanwhile, Sushma Gupta, an event management entrepreneur and owner of Shining Rays Co. BPC, said the past week has been better. “We are hopeful conditions will improve, but it may take time to fully return to normal.”
Meanwhile MP Ahmed Al Salloom, chairman of the Bahrain SMEs Development Society, said recovery starts when workshops, shops, restaurants, service offices and small factories return to full output. He said keeping the sector productive calls for an immediate and focused support package, including delaying or rescheduling finance and bank dues without extra interest, speeding up payment of money owed to companies by state bodies, giving SMEs priority in government tenders and purchases, and easing running fees for a temporary period.
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