Concrete, steel demand to double
Dubai, May 22, 2008
The demand for ready mixed concrete, reinforcing steel and stone cladding is set to more than double next year as civil building construction projects peak across the Arabian Gulf but tail off in 2010, according to the latest market analysis.
'The phenomenal scale of building right now places the Gulf at the centre of the world's most concentrated construction boom,' said Bernard Walsh, managing director of dmg world media Dubai, organisers of The Big 5, the region's largest trade show for the construction industry and associated suppliers taking place from November 23 to 27 at Dubai International Exhibition Centre.
Active civil building construction projects in the Gulf Co-operation Council countries are currently valued in excess of $1.8 trillion, according to the database of research company Proleads which monitors major construction projects across the region from initial planning to completion.
The five biggest civil building projects in the GCC are in Saudi Arabia, the UAE and Kuwait. Alone, they are budgeted at almost $350 billion, sayd experts.
The projects in this latest analysis are all commercial, education, health, residential, retail, hotel, leisure, entertainment, theatre, cinema and mixed use buildings along with infrastructure such as canals, reclamation, airports, bridges, ports, roads and railways. They do not include industrial, oil and gas, power, water and other projects.
Concrete, reinforcing steel and claddings are fundamental elements in the civil construction industry and represent a massively-important market for both manufacturers and suppliers in the Middle East.
For buildings alone, and based on standard industry ratios related to project values, the analysis forecasts demand for ready mixed concrete across the Gulf to reach $8.6 billion at today's prices this year, more than double to $18.7 billion next year before receding to $15.5 billion in 2010.
Similarly in reinforcing steel, the forecast for this year is $7.5 billion; $16 billion in 2009 and down in 2010 to $13.1 billion.
Stone cladding, which marginally lags the concrete and reinforcing steel market, is expected to reach $1.5 billion this year, sharply rising to $4.3 billion in 2009 and maintaining $4.5 billion in 2010.
'These detailed forecasts for the basic building blocks of the construction industry are reflected in similar levels of increasing demand for all kinds of materials, fixtures and fittings used in the industry,' said Walsh.
The top five civil projects in the GCC by value are:
1) King Abdullah Economic City: $116 billion
Under construction for Emaar Economic City Company, this project involves a city at the Red Sea between Jeddah and Rabigh. It includes a seaport with 300,000 pilgrim capacity; an industrial district; a financial island; a resorts area; a residential zone to include 150,000 apartments; an educational zone with a campus for 18,000 students.
2) Silk City: $86 billion
The centre of the planned city on Kuwait's Subiya peninsula will be a 1,001 metre high Mubarak Tower. The city will be made up of various zones including cultural, film, media, industrial, business, sports, and leisure, environment and health cities. There will also be a wildlife convention centre, exhibition centres, parks and housing for 700,000 people.
3) Dubailand-Bawadi Development: $54 billion
This Tatweer project involves a tourist and leisure resort at the Dubailand development. It will include approximately 31 hotels with about 29,200 rooms of which 12,450 will be in Tatweer's 12 themed hotels. The development will offer 100 theatres, 1500 restaurants, entertainment and retail components. Asia-Asia, to be the world's largest hotel, will be the centrepiece providing 6,500 rooms.
4) Prince Abdulaziz Bin Mousaed Economic City: $53 billion
Work has started on the $53 billion development in<
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