Saudi Arabia the primary driver, with 67% of the total value of announcements
Projects worth $5.5 billion had been announced across the GCC in April 2020, primarily driven by Saudi Arabia, which contributed 67% of the total value of announcements, while the majority of new project announcements were main in the transport and utility sectors, a new report has found.
According to the 18th edition of the BNC Network’s journal (entitled The Post-COVID Expo), the GCC construction market is estimated at $2.4 trillion, with more than 23,000 active projects at the end of April.
However, the GCC countries were cautious in their approach of announcing and awarding new construction projects in April, due to the market uncertainty imposed by the COVID-19 outbreak, coupled with the fall in oil prices, it added.
Project execution has also dropped to half the month average due to the lockdown situation in the region, the report stated. It also mentioned the recent construction happenings across the GCC, coupled with the important socio-economic highlights.
“Difficult as it may be to currently see through the fog caused by the hardships businesses and people are faced within the short-term, the Post-Covid Expo would truly put Dubai at the center of the world and cement its legacy,” remarked Avin Gidwani, CEO of Industry Networks, in response to the postponement of the Expo.
“The 2-year, 3-year, 5-year and 10-year vision plans and rule-books across the region are being ripped up and re-written by ambitious leaders that are bracing for the challenges,” stated Gidwani.
“Expect delays as the plans get rewritten but don’t lose hope as the Post-COVID world will expedite the evolution the region has been seeking.” he added.
According to BNC, projects worth $11 billion were awarded registering a steep month-on-month (MoM) hike with notable projects such as the LNG Shipbuilding Programme in Qatar and an Innovation Hub for the energy sector in Abu Dhabi being awarded last month.
Projects worth $8.3 billion were completed in April across the GCC which was half the monthly average of 2019, it added.