New research says Gulf construction sector has seen 30% pick-up compared to last year
The GCC's construction market has shown a 30 percent pick-up this year, with $130 billion worth of completed projects so far recorded, according to new research.
The new study by MENA Research Partners (MRP) said that completed projects increased from $100 billion in 2016 despite headwinds that extended from oil price slump to budget adjustments in many GCC countries.
The figures remain on par with an annual average of $135 billion during the 2009-2014 period.
With total GCC active projects at around $2.6 trillion – equivalent to 160% of GDP - the regional construction market presents "sufficient depth and opportunities for investors and regional market participants over the years to come", MRP added.
Anthony Hobeika, CEO at MENA Research Partners, said: “This surge is driven by economic diversification away from hydrocarbons in leading GCC countries, with a particular focus on sectors like transportation, power and water, manufacturing and energy projects totalling in excess of $1 trillion of projects in the pipeline, along with a shift from oil into renewables where many GCC countries have set ambitious targets to expand their alternative energy generation.
"Governments remain the key drivers of construction activity, as part of their firm commitment to the long-term sustainable economic development... the role of the private sector has been on a rapid upward trajectory, primarily targeting consumer-driven sectors like retail, logistics and industrials.
"Governments and the private sector are turning into trusted partners within the construction sector."
The research showed that the UAE and Saudi Arabia account jointly for 70 percent of the value of active projects.