$83bn projects to be completed this year in GCC
Dubai, January 19, 2014
Construction projects worth $69.91 billion, across all building sectors, were completed in the GCC in 2013, according to a study.
The research, conducted by Ventures ME and commissioned by dmg events, estimates projects worth $83.41 billion (+17.43 per cent) to be completed this year and $82.2 billion to be awarded during the year.
It said the GCC Interior Contracting and Fit-out Market registered an 8 per cent increase to $7.81 billion in 2013 compared to 2012. It is expected to increase by another 18 per cent this year, the study said.
This is the third year that dmg events, the company behind Index - the leading Mena design exhibition, has invested in the study.
With residential (43.3 per cent), commercial (18.2pc) and educational (10pc) segments leading the way, 2013 has been a positive year for the construction market. Projects worth $71bn awarded during the year. Hospitality, medical and retail buildings worth $4.6 billion, $2.4 billion and $1.8 billion, respectively, were completed.
Saudi Arabia and the UAE rank in the top two positions for all sectors with the exception of education and healthcare for which Qatar ranks top with completed projects worth $4.6 billion in the educational segment (Saudi Arabia: $1.01 billion) and worth $1.12 billion in the healthcare segment (Saudi Arabia $482 million and UAE $570 million).
Saudi Arabia was the largest interior contracting and fit-out market with a 47.4 per cent share ($3.7 billion) followed by the UAE and Qatar valued at $2.39 billion and $953 million respectively.
According to the Ventures ME study, figures for 2014 are expected to increase further for both the building construction and interiors markets. $83.41 billion worth of completed projects and $82.8 billion worth of awarded projects are forecasted over the next 12 months; the interiors market is also likely to grow by 18 per cent and reach an estimated value of US$9.2bn by the end of the year.
Commenting on the figures released by Ventures ME, Frederique Maurell, group event director for Index and workspace at INDEX, said: “Most segments of the GCC building construction market have recovered significantly from the downturn and 2013 has been positive with residential, education and hospitality segments in particular showing signs of growth and a strong recovery.
“The GCC Interior Contracting and fit outs sector constitutes approximately 10 to 20 per cent of the average construction project value, performing much better than its European and Asian counterparts. Worldwide market slowdowns have prompted investors to seek markets that offer growth prospects in the near term and the GCC offers ample growth prospects for the interiors and fit outs market across 2014,” he said.
The 24th edition of Index International Design Exhibition and the 13th edition of workspace at Index will take place at the Dubai World Trade Centre from May 19-22. – TradeArabia News Service