UAE and KSA account for bulk of total project announcements in October 2019, BNC Intelligence report finds
GCC project announcements have increased and raised optimism in the construction market with oil and gas and the urban construction sectors contributing 80% of the total announcements made in October 2019, a report has found.
According to a report by BNC Intelligence, the GCC construction market is estimated to be worth $2.5 trillion, with more than 26,000 active projects at the end of October. Projects worth $20 billion were announced in October alone, half of which were announced in Saudi Arabia, it added.
It added that of the total project announcements in October, the UAE accounted for 48% of them, while Saudi Arabia contributed 50%. Entitled the Riyadh Roller Coaster, the 12th edition of BNC Intelligence’s Projects Journal said that project completions registered a 27% hike as compare to the monthly average in 2019.
It said that new projects announcements were primarily led by the urban construction sector, with 44% share, followed by the oil and gas sector with 36%.
Last month, two multi-billion-dollar entertainment and leisure construction projects were announced, including a mixed-use entertainment and shopping centre development in Saudi Arabia, and a megacity entertainment city in Kuwait.
“If the entire Middle East was an Arabian theme park, the ride named Riyadh is one you won’t want to miss,” remarked Avin Gidwani, CEO of Industry Networks.
“The Riyadh Roller Coaster promises to be a wild ride, exceeding the superlatives the Middle East Theme Park is famous for. It has all the elements of a fantastic roller-coaster – scary but enticing for the adrenalin it promises to provide,” said Gidwani.
“You can expect a slow start as projects are designed and you inch higher up the track, but tenders are on the horizon and you’ll reach a peak before you know it, speeding down from there into a valley but only momentarily before you find yourself at the next peak.” he added.
Project announcements in 2019 is already following an upward trail, as it reaches by October around 93% of the total announcements in 2018. Meanwhile, the total value of project awards till October reaches 78% of the total value of project awards in 2018, said the report by BNC.
Construction was completed for projects worth $19 billion in October, with Saudi Arabia and Kuwait each contributing 27% of the total value of completions followed by the UAE with a 23% share, it added.