Order backlog of GCC contractors rises 4.8% from last year
UAE’s Arabtec and Drake & Scull have the largest order backlog in the GCC region at the end of the third quarter of 2014, a new report has found.
Despite a decrease in the value of contracts awarded in Q3 2014, the order backlog of contractors in the GCC has increased, according to Kuwait-based Global Investment House. The total value of projects awarded to GCC contractors in Q3 this year was $800 million, down 37.3% from the same period last year. The order backlog of contractors rose 4.8% year-on-year to $12.7 billion in the last quarter, Global Investment House said.
UAE contractors have the largest order backlog in the GCC, with Arabtec and DSI in the lead, accounting for 51% and 33% of the industry’s backlog respectively.
Although plunging oil prices remain a concern for government spending, minimal short term impact is expected due to the strong fundamentals of most of the GCC states, the report said. However, if oil prices stay subdued, it could put a strain on government finances, possibly lowering the sector’s long-term prospects.