GCC's construction pipeline worth $1,368bn - study

The UAE still accounts for more than half of all GCC construction projects despite the industry grinding to a halt amid the global economic downturn, a new report said on Tuesday.

The study published by the Dubai Chamber of Commerce and Industry said $714.9bn of construction and infrastructure schemes were still active in the UAE.

The figures, which are based on data from various government agencies, said the total GCC development pipeline totalled $1,368bn.

Saudi Arabia has $283.8bn of projects active, according to the data, while Kuwait is the third biggest market in the GCC with $184.8bn of projects.

Qatar ($92.6bn), Oman ($48.3bn) and Bahrain ($44.1bn) completed the GCC active projects list, the study said.

An analysis of the largest construction and infrastructure projects by value in the GCC shows that five of the region’s 10 biggest schemes planned or underway are in Abu Dhabi.

The report said that the UAE construction industry had suffered a "challenging period" in 2009, adding that this would continue this year.

"Construction developers in the UAE are expecting a more promising 2011 and beyond," the report said. "In recent months, firms are branching into new markets, switching focus from private to public sector schemes and forming new alliances in a bid to win work in an increasingly competitive environment."

The study added that since the end of the UAE construction boom in 2008, many building projects that were cancelled and put on hold while there had been "little in the way of new project awards".

Dubai Chamber also said that the market had shifted from Dubai to Abu Dhabi where short term growth would be driven by the UAE government’s spend on infrastructural projects.

"Whilst it is of no surprise that the UAE is still the largest construction market in the GCC, what has changed is that the market is being driven by development projects in Abu Dhabi while until recently it has been Dubai’s real estate projects that have dominated the industry," the report added.