The value of construction projects cancelled in MENA has risen by eight percent since the start of the year, according to a report published by Citigroup.
However, the value of cancelled and delayed construction projects in the region remained largely unchanged at approximately US$719bn since January 2012, the lender’s latest construction project tracker showed.
According to the study, more than half (57 percent) of these cancelled or delayed projects were in the UAE, with the value of such projects rising two percent since Citigroup’s last report, published in January.
The story was significantly different in Saudi Arabia, where the value of cancelled and delayed developments pared by eight percent to US$316bn.
In Qatar, which has seen a huge number of new developments in recent years, the value of delayed projects plummeted by 41 percent, but in terms of those being cancelled the value soared by almost a third, at 32 percent.
Looking at the construction industry as a whole, on a year-on-year basis, the value of GCC projects planned and underway crept up 2.5 percent to US$1,906bn.
Citigroup’s report showed that Saudi Arabia leads the way, with US$750bn of new projects in the pipeline, making up 31 percent of the entire MENA market.
Iraq, which is now looking to rebuild its balance sheet, remains the third largest market in the region with just under US$315bn of new projects. It is also showing signs of spending across segments, which could mean more opportunities for contractors.
In Kuwait, though the value of projects has grown 10 percent to almost US$200bn since the start of the year, the market generally is expected to be hampered in the coming months by domestic political tensions.
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