The GCC's construction market has nearly 22,000 active projects worth $2.4 trillion, according to new research by analysts BNC Network.
Its report showed that there were a total of 21,893 active construction projects in the Gulf at the beginning of September.
Of these, the total value of urban construction projects reached $1.18 trillion, reflecting the fact that the governments of the six Gulf countries are determined to carry out the important infrastructure projects.
The urban construction contracts constitute 80 percent of the contracts awarded for all sectors in the GCC and in dollar terms this translates to 49 percent of the total contracts awarded, said BNC Network.
“The governments and the private sector developers of the GCC region appears to be unmoved by the slowdown in the global economy and the lower oil price environment. Our latest GCC Construction Intelligence report shows that the projects are going ahead despite the challenging global economic situation," said Avin Gidwani, CEO of BNC Network.
“This is very good news for the businesses considering the overall global economy where countries are trying to push the economic growth rate to a slightly higher level.
“The continuation of these projects will keep many businesses, especially the sub-contractors, suppliers remain in business and help save millions of jobs across the region. If these projects continues as planned, the region will not only be saved from a possible recession and job losses, but also these will ensure stronger economic growth across the region,” he added.
The report said the GCC constitutes 85 percent of all active projects in the MENA and in dollar terms, these projects account for 68 percent of the total estimated value.
The report added that the value of the oil and gas projects in the oil-rich Gulf region reached $331 billion while the total value of utility projects reached $302 billion in September.
Industrial projects reach $181 billion, the report also showed.
BNC Network said that in August, the number of active projects in the GCC increased by 2 percent compared to July, adding that a total of 142 active projects with a combined estimated value of $14 billion moved to construction from other stages during the month.
A total of 596 active projects with a combined estimated value of $13 billion were completed during the month while 90 active projects with a combined estimated value of $15.6 billion were put on hold in the GCC.
BNC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding $7.2 trillion.
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