GCC construction boom to hit $330bn
Dubai, August 12, 2008
The civil construction boom across the Arabian Gulf will reach in excess of $330 billion by the end of 2008, more than ten times the annual investment being made in the region’s cash-rich oil and gas industries, according to a new research.
’The hydrocarbon economies of the Gulf are now an international force with world-class companies creating windfall profits to help governments diversify away from oil,’ 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, The Big 5, will take place from November 23 to 27 at Dubai International Exhibition Centre.
’There are huge profits in the oil and gas industry but in 30 years from now – perhaps less – it may be a very different story, so diversification now is key to sustainable long-term growth,’ Walsh said, citing the research.
’Unlike the previous oil booms of the 1970s and 1980s, the region is investing heavily in infrastructure and its own future, which is clearly reflected in the current civil construction boom.’
The GCC countries are currently at the centre of the world’s most concentrated construction boom – focused particularly on the UAE and Saudi Arabia.
The Big 5 research partner Proleads is currently monitoring more than 3,800 active construction projects across the region worth around $3.5 trillion in total.
The civil projects involved include all commercial, education, health, residential, retail, hotel, leisure, entertainment, theatre, cinema and mixed use buildings along with civil infrastructure such as canals, reclamation, airports, bridges, ports, roads and railways.
The $330 billion value of civil construction projects comes at the end of a steep three-year climb from less than $30 billion in 2006.
It is also in stark contrast to investment in the oil and gas industries, both upstream and downstream, where project values are estimated at $30 billion or less per annum in each of the two sectors.
’The GCC countries recognise that they have been dependent completely on oil and gas and are trying to diversify their economies,’ said Walsh.
’Gulf countries have historically underinvested in their own infrastructure but have clearly realised the requirement to do so now. That paradigm shift is becoming hugely apparent in this latest research.’
’We are seeing it not only in infrastructure such as roads, airports, railways but also in utilities such as power generation and water which are also seeing massive investment. The value of GCC power generation projects, for example, is projected to peak by the end of 2009 at $27 billion with water projects contributing $15 billion.’
The Big 5 is the most important five days for the construction industry in the Middle East. Not only is it the largest show for the industry in the Arabian Gulf, it is now one of the world’s largest trade shows for the construction industry and associated suppliers.
Featuring more than 2,800 companies from 52 countries, The Big 5 is also the most comprehensive event of the year for contractors, specifiers, architects, engineers and buyers throughout the GCC and neighbouring countries.-TradeArabia News Service