HUGE JUMP: GCC infrastructure deals to soar 80pc
Dubai, August 6, 2014
Infrastructure project awards across the six Gulf Cooperation Council (GCC) states are forecast to exceed $86 billion in 2014, an increase of 77.8 percent over 2013, a new report has said.
New figures released by construction intelligence firm Ventures Onsite show a dramatic increase in contract awards across the region, in every country except Saudi Arabia.
Qatar will award projects worth $26.2 billion compared with just $9.4 billion last year while Kuwait is expected to award $3.45 billion, almost 10 times the previous year.
In the UAE, $15.18 billion will be awarded, almost five times the 2013 contracts, while in Oman infrastructure awards are expected to reach $7.4 billion - up $5.5 billion on 2013. Meanwhile Bahrain, which awarded $382 million last year, is expected to award $3.4 billion this year.
The total value of infrastructure projects (in various stages) by country as of August 2014 is: Qatar - $103.022 billion; Saudi Arabia - $163.022 billion; UAE - $95.121 billion; Bahrain - $14.27 billion; Oman - $32.121 billion; Kuwait - $32.871 billion, the report said.
The figures were released by Ventures Onsite, the intelligence partner for Middle East Concrete and PMV Live exhibitions, which run alongside The Big 5 international building and construction show set to take place in Dubai in November.
Saudi Arabia’s forecast award of $29.34 billion - the highest in the region - represents a decrease year on year. However last year’s total awards of $33.6 billion included the massive $22.5 billion Riyadh Metro project.
Infrastructure projects make up 16 percent of the total construction value of GCC projects, and rail projects like the Riyadh Metro are the main beneficiary.
According to Ventures, it is estimated the rail sector is worth $200 billion in the region as the six countries aim for an integrated GCC-wide network by 2018.
Infrastructure is a key focus for seminar sessions at this year’s Middle East Concrete and PMV Live exhibitions.
During the first day there will be a panel session entitled ‘Market update and future forecast of the Middle East’s infrastructure sector’ which will look at the key issues the region has to overcome.
Panellist Paul Groves, head of tunnelling and ground engineering with Atkins, will also present a case study on a metro project. Atkins, among the leading rail sector consultancies in the Middle East, has recently set up a centre of rail excellence and is involved in major rail and metro projects in the UAE, Saudi Arabia and Qatar.
PMV Live and Middle East Concrete will take place at the Dubai World Trade Centre running from November 17 - 20. - TradeArabia News Service