Chinese giant targets mega-projects in GCC

  • Share via facebook
  • Tweet this
  • Bookmark and Share

One of China's biggest contractors is looking to use its experience of delivering mega-housing projects in its home markets to meet demand in the GCC - particularly in Saudi Arabia and the UAE.

China State Construction Engineering Co (CSCEC) is planning to target the need for governments in Saudi Arabia and the UAE to deliver large numbers of housing units for nationals by offering to develop and manage huge schemes over a 20-30 year period.

Middle East CEO Yu Tao told Construction Week that in China it has delivered schemes of up to 100,000 new homes on 10 sq km plots of land where it masterplans, designs, funds, builds and maintains projects through long-term joint ventures with government partners.

"That’s where we have built our reputation in the China market. We have 10 percent of the China market. Out of the 1.3bn population, 130m is living in a property that we constructed or developed.

"We like this kind of arrangement because it is a very high threshold," said Tao. "That really rates your ability – not just for so-called construction but for township planning, financial arrangement and a very good ability to sell.

"You have to generate income in order to finish the infrastructure and make the whole package viable."

He argues that the company, which had a turnover in 2012 of $93bn and a workforce of around two million people worldwide, has the resources to deliver such schemes as well as access to capital from Chinese banks.

"Chinese banks have become stronger in the world," he said. "They’re bigger in size and their involvement in the overseas market as well. So, to make use of the funds of the Chinese banks and to facilitate their development in the GCC is a major (potential) business to us."

Tao argued that the model developed in China is appropriate for the GCC, pointing out that CSCEC has already worked on mass housing schemes in Algeria and Libya.

"It depends on the government. This kind of approach was brought by the Chinese government and the municipalities in less than 10 years. It is becoming more popular.

"We’re very keen, if any of the governments in the GCC would like to assign us to be a master developer.

"If a developer or government cuts this (housing process) into pieces, the whole process will become longer."

CSCEC set up operations in the Middle East nine years ago. Since then, it has carried out around $4bn worth of projects and currently has a regional workforce of around 5,000.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
Mall talk

Mall talk

Plans for Dubai’s Mall of the World have made headlines all over...

1
Qatar's labour requirements

Qatar's labour requirements

Qatar’s Supreme committee has published worker welfare standards...

2
$40bn housing deal may signal Gulf investment push into Egypt

$40bn housing deal may signal Gulf investment push into Egypt

Egypt's economy is recovering only slowly from the turmoil that...

Most Discussed
  • 23
    World's most pierced man refused entry to the UAE

    Tolerance has its limits everywhere including Dubai and those who considered Dubai a lawless circus were held accountable...so thank you Dubai authorities... more

    Thursday, 21 August 2014 10:51 PM - Khalil
  • 17
    UK looks to close tax loophole on expat landlords

    UK taxes too much and too complicated and time taking and confusing and continuous. Returns, lawyers, HMRC, taxes too much for too little. Not worth the... more

    Sunday, 17 August 2014 12:40 PM - AbdolRahman
  • 16
    Baby NOT on board?

    The people commenting here were all 20 years old when they were born, never cried, never screamed and never ran etc etc.
    more

    Thursday, 21 August 2014 8:30 AM - Amer