Don't tar all the Gulf with the same brush. It is true that in Bahran, the situation isn't great.  Residential sales have dried up, and the next two years will see "significant challenges" for the sector, according to a recent Richard Ellis report.  A pipeline of upper-end projects, and very high morgage costs are adding to the stresses.

All the same the situation is a picture of stability compared to Dubai. Since Q4 2008, residential lease rates for quality apartments in prime areas such as Seef District and Juffair have dropped by only around 10%, compared to more than 50% falls in parts of Dubai.

Few residential projects have been formally cancelled, though many have been put on hold or delayed.  So be happy that you're in Bahrain rather than somewhere nearby.  

Read about it in ArabianBusiness.com