With $81bn-worth of projects under construction, Saudi Arabia continues to lead the race as GCC’s largest civil construction market. UAE’s market, valued at $66bn is the region’s second-largest, followed by Qatar with projects worth $32bn under-construction.
As per MEED Insight’s GCC Construction Report 2014, a total of $59bn was awarded in contracts last year (2013) in the GCC, marking the sector’s growth at levels unprecedented since 2008.
“These markets are investing billions of dollars to create new or upgrade existing infrastructure,” said Ed James, head of Meed Insight.
Key drivers behind the growth have been high oil prices and a strong population growth in the region. “None of these drivers is expected to change dramatically in the medium term,” James added.
As per a report by the Gulf Times, the MEED study has also stated Kuwait, Oman and Bahrain continue to be “small civil construction markets” as against their fellow GCC members – however, Kuwait and Oman have the potential to increase their market value, and enhancing their private sectors will be critical to their growth.
“The margin between Saudi Arabia and the UAE is expected to narrow as contract awards in the Kingdom slow while those in the Federation quicken.
“The overall forecast for the year is for $68bn worth of civil construction contract awards,” added James.