New contract awards in the GCC will approach $150bn in 2014 compared with about $135bn in the previous 12 months, a new report has shown.
The project boom encompasses all six GCC markets and extends across all sectors, Meed said in a report.
With more than $40bn worth of new contracts awarded in the six-nation GCC alone in the first quarter, the projects markets of the Middle East are set to enjoy a record-breaking this year, it said.
So far, among the high-profile projects that have been awarded include the $12bn Kuwait National Petroleum Company’s Clean Fuels Project; more than $3bn worth of projects awarded by Qatar’s Ashgal for the Expressway and LRDP schemes; Abu Dhabi Musanada’s more than $1bn worth of contracts awarded for the Mafraq-Ghuweifat Road Development project; Qrail’s $700mn worth of contract awarded for the elevated section of the Doha Metro’s Red Line South project; and the main contract with a value of $705mn awarded by the Al Reem Island (UAE).
Confidence is being further lifted by the “irresistible rise” in project spending in Iraq, where oil production last year reached an all-time high of more than 3mn barrels per day (bpd). At least $20bn of new contracts are expected to be placed in Iraq by the end of 2014 in a capital investment programme that will establish the country as one of the most exciting prospects in the world for the local, regional and global construction industry.
Figures compiled by Meed Projects show that a total of almost $2.5tn worth of contracts are planned or under way in the GCC.
A further $500bn worth of projects are at a similar stage in Iraq. For the Mena region as a whole, more than $4tn worth of projects are planned or under way.
This vast, varied and challenging opportunity will be comprehensively reviewed in Meed’s annual Arabian World Construction Summit (AWCS), which will be held at the Sofitel Hotel on Palm Jumeirah on May 12.
More than 60 speakers representing all high-growth Middle East construction markets and the largest region’s project sectors will address the event.
Across the region, there is a greater need for social and housing capacity. In the past six years, according data collated by Meed Projects, residential projects comprised 29% of total construction projects awarded during the period, followed by mixed use projects at 18%.
With real estate opportunities back to pre-bust days, meeting the growing demand for private residential and social housing developments will be of paramount importance. Imad Ghantous, managing director (Property) Hyder Consulting Middle East, said: “Rapid population growth will be a key driver of this continued growth in the construction sector, with a particular focus on residential and social infrastructure projects.”
Experts currently estimate that the region’s population is expected to grow to more than 600mn by 2030, from around 340mn now.
“The AWCS was launched in 2007 and is established as the premier annual event for major clients and senior construction industry executives working in the Middle East megaproject market,” said Meed Events chairman Edmund O’Sullivan.
