Saudi Arabia, which currently has a 38 per cent share of the total construction projects in the region, is expected to award contracts worth $86 billion in 2011, according to a report by Deloitte Middle East.

Currently the kingdom has $624 billion worth of projects planned or underway, said the professional services firm in its newly-released 'GCC Powers of Construction 2010'.

Saudi, Abu Dhabi and Qatar continue to be the GCC markets harbouring greatest potential for the construction industry, the Deloitte report stated.

'The UAE has 36 per cent of total construction projects, worth $958 billion, and is expected to see its construction industry grow by a compound annual growth rate (CAGR) of 9.6 per cent from 2010 to 2014.'

Qatar, with a smaller 15 per cent of total construction projects, is estimated to see its construction industry grow by a CAGR of 12 per cent over the same period, the Deloitte report said.

“In this year’s 'GCC Powers of Construction' report we can see a continuation of many of the trends that were born out of the global financial crisis,” said Omar Fahoum, Deloitte Middle East chairman and chief executive.

“Prime among these has been the role of government in injecting funds in a bid to stimulate their economies. These funds are being used to target infrastructure and sustainable development, thereby directly benefiting the construction sector,” he added.

As well as providing an overview of each GCC market, the report explores some of the thornier issues affecting the industry.

“This year has been challenging for the GCC construction sector,” said Cynthia Corby, audit partner and construction industry leader at Deloitte in the UAE.

“Contractors have had to face suspended or canceled projects while coping with increased competition for new tenders. In the key markets of Saudi, Abu Dhabi and Qatar, this competition has been further sharpened by the entrance of international contractors looking for new opportunities,” she added.

GCC Powers of Construction 2010 also includes contributions from Murray & Roberts on partnering successfully in the Middle East and Al-Turki, which provided a construction sector report for the Kingdom of Saudi Arabia.

Deloitte’s publication explores the issues of setting up business in Saudi Arabia, IPO readiness in the construction sector, regional restructuring, and capitalizing on build operate transfer contracts and public private partnerships from a contractor’s perspective.

The major trends taking place within the GCC including the government spending, public infrastructure, going green, urban regeneration, transport infrastructure, and affordable housing will also be examined in this year’s publication, the statement said.-TradeArabia News Service