Construction projects in the Gulf region due to be completed by the end of this year are forecast to reach nearly $128.5 billion, according to new research released on Sunday.
The total value of completed projects in 2014 will represent a 92 percent increase compared to 2013 ($66.89 billion while the expected expenditure on interiors and fit-outs is expected to total $9.57 billion, up nearly 30 percent on last year.
The findings are part of a bi-annual study conducted by Ventures ME and revealed by dmg events on the eve of the inauguration of INDEX exhibition, the MENA interior design trade show.
The research analyses both the building construction and the fit-out and interiors markets focusing on six main sectors - residential, commercial, hospitality, retail, educational, and medical - in each of the GCC countries.
Out of a total market worth $128.46bn, the medical, residential and hospitality sectors will count for over half of the market with shares of 24.43 percent, 23.34 percent and 22.64 percent respectively, the research showed.
Compared to the previous year, the hospitality and medical sectors will register the biggest growth. The value of completed hospitality building projects is forecast to jump from $3.68 billion to $29.08 billion, a staggering rise on nearly 700 percent while the value of completed buildings for medical use will go up by 725.19 percent to $31.38 billion.
The research showed that Saudi Arabia will be the country where most of the completed buildings will be located particularly in the residential ($34.39 billion), hospitality ($3.85 billion), commercial ($7.97 billion) and educational ($4.38 billion) sectors.
Qatar topped the list for retail projects ($522 million) moving up from fifth position in 2013 while the UAE will significantly increase its completed healthcare projects ($3.13 billion) compared to just $227 million last year.
Out of an overall estimated market value of $9.57 billion in the GCC interiors the fit-out markets, the residential sector will be the largest spender with $3.30 billion, followed by the hospitality sector and the commercial sector, the research showed.
Saudi Arabia will rank in the top position when looking at the hospitality, commercial and educational sectors while the UAE will top the healthcare and residential sectors.
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