Urban projects, energy sector spur $2.5trln GCC construction market

With more than 27,000 active projects at the end of September, the GCC construction market, which is estimated to be worth $2.5 trillion, is poised for solid growth, said a report by BNC, a leading construction intelligence platform in the Middle East and North Africa (Mena) region.

The GCC construction market was stable in September with new announcements reaching the $8.6-billion mark while contracts worth $10.6 billion were awarded, a clear respite from the low construction activity observed in August, it stated.

The oil and gas and urban construction sector jointly contributed 54 per cent of the total announcements and 73 per cent of the total awards in Q3, said BNC in its 11th edition of the Projects Journal titled: Light at the end of the Summer Tunnel.

Oman and Saudi Arabia jointly shared 69 per cent of the total announcements, while the UAE and Saudi Arabia accounted for 81 per cent of the project awards in the last quarter, it stated.

Commenting on the report, Avin Gidwani, CEO of Industry Networks, said: "The project activity black-out during the summer has thankfully ended with some signs of light at the end of the summer tunnel."

For businesses with the vision and foresight to see new opportunities in a rapidly evolving market, and the agility to adapt - the light is the beckoning glow of new project opportunities in slumbering parts of the GCC market that are awakening with a roar. he added.

Project completions maintained the quarterly average as they reached $44 billion in Q3, with the UAE contributing 44 per cent and Saudi Arabia 28 per cent to the overall value of completions during the quarter, stated Gidwani.

"The buoyant effect of social change sweeping the region is yet to come as changes are rolled out in quick succession and refined before allowing them the undisturbed space to produce the economic momentum that they have been designed to create," he added.-TradeArabia News Service