Arab Today, arab today gcc construction opportunities valued at 500bn
Last Updated : GMT 22:23:36
Arab Today, arab today
Arab Today, arab today

GCC construction opportunities valued at $500bn

Arab Today, arab today

Arab Today, arab today GCC construction opportunities valued at $500bn

Reyadh - Arabstoday

Despite grappling with challenges and delivery issues related to current projects, major opportunities in the construction sector remain prevalent in Saudi Arabia, Qatar, Abu Dhabi and Iraq in 2012, according to the newly released Deloitte Middle East\'s annual report on the sector: \'GCC Powers of Construction: Five Lessons to Learn From\'. Key findings in the Deloitte report indicate that large infrastructure projects, particularly around social and transport infrastructure, will offer tremendous opportunities for contractors, as will continuing upstream and downstream oil and gas related developments in the coming years. Of the biggest investments currently underway is Qatar\'s plan to spend $100 billion in preparation for hosting the 2022 World Cup and achieving its 2030 vision, and Saudi Arabia\'s capital spend programme approaching $400 billion over the next 10 years alone. The Deloitte report indicates that although there are massive opportunities associated with huge construction spend, many project sponsors still have to deal with illiquid projects and debt. \"What primarily differentiates participants in the GCC\'s construction industry from their Western counterparts is that grand opportunities continue to be capitalized upon across the region, despite being forced to deal with continuing negative financial circumstances - simultaneously - in specific locales,\" said Rizwan Shah, Managing Director, Corporate Finance, and Leader of Deloitte\'s Capital Projects Advisory services practice for the Middle East. Backed by vast oil-based reserves and government stimulus packages, the economic prospects of the GCC region have remained positive despite ongoing political unrest in the wider Middle East region. As such, efforts to maintain a balanced and diversified economic base have remained the primary focus of the regional governments as evidenced by a steady stream of investments into construction and infrastructure developments. The Deloitte report indicates that there is at least an estimated $500 billion investment opportunity regionally, in energy, transportation, education, healthcare and other critical sectors of economic development. The oil and gas exporting countries, such as Saudi Arabia, Qatar and Abu Dhabi, have an additional objective which is the need to diversify their economies away from the traditional petrochemical and hydrocarbon industries. This is also driving infrastructure spending in these countries. These countries are now looking at how to take advantage of existing strengths to develop upstream industries - and the focus has shifted to construction, according to the Deloitte report \"The region certainly is expected to continue to offer a lot of opportunity for contractors,\" said Cynthia Corby, audit partner Deloitte Middle East and leader of the Construction industry for the UAE. \"Construction contracts alone, worth $40 billion were awarded to contractors in the first quarter of 2011, 47 per cent of which were in the energy sector. It is interesting to note that despite such grand investments, governments are still trying to recuperate from the impact of the financial crisis,\" she added. The Deloitte construction industry report indicates that there are vast opportunities across the Middle East, with longer term infrastructure investment plans for the region estimated to be in excess of $1 trillion. This figure, as research shows, may continue to rise as governments assess the impact of the Arab Spring on priority investments. In addition, the uprisings have been credited with positively influencing infrastructure investment, forcing governments to accelerate spending programs in order to meet citizens\' higher expectations. In terms of projects in the pipeline across the Middle East, the majority are social (36 per cent); 29 per cent power-related; 13 per cent in transport and 13 per cent in oil and gas. Saudi Arabia The Deloitte report shows that there is imminent growth in the Saudi Arabian construction industry, being the biggest market in the GCC in terms of population and GDP. Budget value of contacts to be awarded in Saudi Arabia in 2011 onwards is set to increase to $35 billion, as compared to $25 billion in 2006. The Government is undertaking grand investments, with plans nearing $400 billion in five years, demonstrating an increasing trend of projects that will need to be awarded in the coming years ahead. These will include building schools, hospitals, universities, houses, airport expansions, and new railway infrastructure and road improvements. This construction market is therefore expected to be one of the most buoyant in the world. The immediate challenge that the Kingdom faces is how to implement the various capital investment programs and to ensure efficient delivery whilst containing inflationary pressures that are challenging the region as a whole. However, the lower global demand in some locales for construction products together with foreign companies shifting focus to countries such as KSA should provide some buffer against inflationary pressures, as per Deloitte\'s report on the GCC construction industry. Qatar The Deloitte report classified Qatar as the fastest growing economy in the GCC region and holding an 8 per cent share of the total value of the regional projects. In terms of its construction industry, its value was forecasted at approximately $8 billion in FY11. Projects planned to be underway in Qatar in the future are valued at approximately $230 billion; with the hosting of the 2022 FIFA World Cup positioned to be a truly major enabling event for the future development of the country and achieving its vision for 2030. Therefore sport will be a key element of the construction industry boom, in the non-oil and gas sector, with investments allocated to hotel, leisure, tourism, sports, recreational and infrastructure projects estimated at $60-70 billion. Abu Dhabi The UAE is ranked as the second largest market with investments worth $9 billion allocated to buildings, infrastructure and energy sectors in the first quarter of 2011 as the Deloitte report indicated. Despite the regional unrest and the public slowdown of projects in Abu Dhabi in 2011, the UAE has overall demonstrated some key elements of stability. Abu Dhabi, in particular accounted for 70 per cent of the total $20 billion of contracts awarded between Q1 and Q3 of 2011. Driving this growth, with over $12 billion in awarded contracts, the Emirate is placing particular attention on transport, utilities and social infrastructure. In addition, according to the Deloitte report, the Abu Dhabi government has a long term investment program to upgrade its airports, seaports and public transport system to cater to the growing population. In addition, approximately $2 billion has been allocated towards an integrated housing project on the outskirts of the capital to improve the imbalances within the residential market.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today gcc construction opportunities valued at 500bn Arab Today, arab today gcc construction opportunities valued at 500bn

 



Arab Today, arab today
Arab Today, arab today Ideen Belmahdy happy to be part of “ Fashion Star”

GMT 17:00 2017 Sunday ,26 February

Ideen Belmahdy happy to be part of “ Fashion Star”
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars
View News in Arabic - Business: عقارات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Ola Ghanem hopes to work with M.Ramadan

GMT 07:23 2017 Friday ,24 February

Ola Ghanem hopes to work with M.Ramadan
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 13:47 2017 Friday ,24 February

Rabia Fatima reveals role of "Facebook" in her career

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday