GCC construction projects in pipeline valued at $2trn
Construction projects planned for the Gulf region are valued at $2 trillion, with Saudi Arabia having more than 38 percent of those in the pipeline, it has been announced.
Delegates at the Meed Construction Leadership Summit in Dubai were told that Saudi Arabia leads the region in terms of the value of projects in the pre-execution stage, with 38.91 percent of the total value, ahead of the UAE which has 34.84 percent.
At a briefing hosted by Deloitte, it was revealed that Qatar is next with an 8.57 percent share, followed by Kuwait (8.22 percent), Oman (6.48 percent) and Bahrain (2.97 percent).
Ed James, director of content and analysis, Meed Projects was quoted by local media as saying that the future growth of the projects sector will depend on several factors, including the oil price slump, the speed of enacting legislation and the ability to obtain funding.
“But more importantly, governments’ commitment to maintain spending in the face of falling revenues to keep the economy moving will be a key factor in driving the industry forward through the challenging times,” he said.
Earlier this week, it was reported that due to lower oil prices, Saudi Arabia’s construction contract awards have declined 51 percent year-on-year and 39 percent since the previous quarter.
The awards stood at $7.4 billion in the first three months of 2016, according to a report by National Commercial Bank (NCB).
Courtesy Arabian Business