$1.68 TRILLION: Gulf construction sector grows
Dubai, September 9, 2012
The total value of construction projects in the Gulf region has reached $1.68 trillion and despite the economic downturn the region remains one of the largest construction markets in the world, according to a new report.
However, nearly 43 per cent or $723.61 billion worth of projects – the largest category of projects – are still on hold, said the report by BNC Network, an online project tracker.
Of the total projects, $489.39 billion worth of projects are currently under construction, $81.45 billion worth of projects are in the tendering phase, $125.12 billion worth of projects are in design phase, the report said.
Projects worth $265.25 billion are in the initial planning and concept phase.
“Despite the economic slowdown caused by the global financial crisis in 2008-09, the Gulf region still remains one of the largest construction markets in the world after China where several large-scale projects are still on track,” said Ben D’Souza, chief operating officer of BNC Network.
“This reflects the governments’ determination to continue to invest in expanding their infrastructure that will help spur economic growth at a time when Europe and the US economies are struggling amid crisis after crisis.”
BNC Network is the region’s largest online project intelligence provider tracking about 55,786 projects worth $2.65 trillion, a statement said.
The UAE is still the largest construction project market – with the value of projects totalling $690.2 billion that includes $429.23 billion worth of projects on hold.
Saudi Arabia is the second largest construction market where the total value of projects have exceeded $451.09 billion, including $100.96 billion worth of projects that are on hold, the report said.
This is followed by Kuwait where total value of projects reached $195.99 billion including $61.47 billion worth of projects that are currently on hold or cancelled. Qatar, which has won the bids to host World Cup Football 2022, ranks fourth among the six countries with total value of projects exceeding $171 billion of which $69.14 billion worth of projects are on hold.
Among some of the large projects, the Dh40 billion UAE National Railway, a Dh35 billion Jeddah Metro project will dominate the infrastructure sector while massive investment in power and desalination projects are also going to play a key role in the region’s overall development, the report said.
Airport development projects to the tune of Dh100 billion are at various stages of development, including the Dh28 billion Concourse 4 project and expansion of Terminal 2 in Dubai are crucial for Dubai’s growth while Abu Dhabi Airports Company has recently awarded a Dh10.8 billion tender to a Turkish-UAE joint venture, Arabtec-TAV to build the Midfield Terminal Complex – part of the Dh25 billion Abu Dhabi International Airport redevelopment plan.
Qatar is planning to open the first phase of its Dh18.3 billion New Doha International Airport terminal later this year, while works are progressing well to build a new airport terminal in Jeddah.
“The Gulf countries are investing the oil windfall in expanding their infrastructure wisely that will help them meet the future growth requirements for a long period,” D’Souza said.
“With continued investment in infrastructure, that has helped the construction sector busy, the governments here are creating the right environment for further foreign direct investment and growth,” he added. – TradeArabia News Service