Al-Khateeb: Rate of Foreign tourists coming for recreational purposes soars 600% in 5 years    Saudi Arabia participates in OIC anti-corruption agencies' meeting in Qatar    Saudi Arabia implements over 800 reforms to drive rapid transformation    Al-Jadaan: Painful decisions were part of the reforms, but economy overcame them    Al-Swaha: Saudi Arabia is heading towards exporting technology in the next phase    Israel-Hezbollah ceasefire appears to hold as Lebanese begin streaming back to their homes    Al Rajhi: Saudi Arabia sets revised unemployment target of 5% by 2030 "300,000 citizens employed in qualitative professions"    Imran Khan supporters call off protest after crackdown    Five survivors found day after Red Sea tourist boat sinking    Russia launched a record number of almost 200 drones toward Ukraine    Al Hilal advances to AFC Champions League knockout stage despite 1-1 draw with Al Sadd    Saudi Arabia unveils updates on Expo 2030 Riyadh master plan at 175th BIE General Assembly Riyadh Expo Development Company established to oversee strategic planning, operations, and legacy development    Saudi FM attends Quadripartite meeting on Sudan in Italy    Best-selling novelist Barbara Taylor Bradford dies    Cristiano Ronaldo's double powers Al Nassr to 3-1 win over Al Gharafa in AFC Champions League    Al Ahli edges Al Ain 2-1, bolsters perfect start in AFC Champions League Elite    Most decorated Australian Olympian McKeon retires    Adele doesn't know when she'll perform again after tearful Vegas goodbye    'Pregnant' for 15 months: Inside the 'miracle' pregnancy scam    Do cigarettes belong in a museum?    Order vs. Morality: Lessons from New York's 1977 Blackout    India puts blockbuster Pakistani film on hold    The Vikings and the Islamic world    Filipino pilgrim's incredible evolution from an enemy of Islam to its staunch advocate    Exotic Taif Roses Simulation Performed at Taif Rose Festival    Asian shares mixed Tuesday    Weather Forecast for Tuesday    Saudi Tourism Authority Participates in Arabian Travel Market Exhibition in Dubai    Minister of Industry Announces 50 Investment Opportunities Worth over SAR 96 Billion in Machinery, Equipment Sector    HRH Crown Prince Offers Condolences to Crown Prince of Kuwait on Death of Sheikh Fawaz Salman Abdullah Al-Ali Al-Malek Al-Sabah    HRH Crown Prince Congratulates Santiago Peña on Winning Presidential Election in Paraguay    SDAIA Launches 1st Phase of 'Elevate Program' to Train 1,000 Women on Data, AI    41 Saudi Citizens and 171 Others from Brotherly and Friendly Countries Arrive in Saudi Arabia from Sudan    Saudi Arabia Hosts 1st Meeting of Arab Authorities Controlling Medicines    General Directorate of Narcotics Control Foils Attempt to Smuggle over 5 Million Amphetamine Pills    NAVI Javelins Crowned as Champions of Women's Counter-Strike: Global Offensive (CS:GO) Competitions    Saudi Karate Team Wins Four Medals in World Youth League Championship    Third Edition of FIFA Forward Program Kicks off in Riyadh    Evacuated from Sudan, 187 Nationals from Several Countries Arrive in Jeddah    SPA Documents Thajjud Prayer at Prophet's Mosque in Madinah    SFDA Recommends to Test Blood Sugar at Home Two or Three Hours after Meals    SFDA Offers Various Recommendations for Safe Food Frying    SFDA Provides Five Tips for Using Home Blood Pressure Monitor    SFDA: Instant Soup Contains Large Amounts of Salt    Mawani: New shipping service to connect Jubail Commercial Port to 11 global ports    Custodian of the Two Holy Mosques Delivers Speech to Pilgrims, Citizens, Residents and Muslims around the World    Sheikh Al-Issa in Arafah's Sermon: Allaah Blessed You by Making It Easy for You to Carry out This Obligation. Thus, Ensure Following the Guidance of Your Prophet    Custodian of the Two Holy Mosques addresses citizens and all Muslims on the occasion of the Holy month of Ramadan    







Thank you for reporting!
This image will be automatically disabled when it gets reported by several people.



GCC construction sector to award $150b contracts by '13
Published in The Saudi Gazette on 28 - 05 - 2012

The GCC construction industry will witness a pick-up in project activity toward the second half of the year until 2013 with contract awards to reach a high of $150 billion, experts said at the recently concluded Arabian World Construction Summit 2012.
Attended by construction and projects industry stakeholders from across the Arab world, summit speakers presented a comprehensive overview of projects across key sectors and markets in the region.
Among the key milestones predicted in the next 12 months, based on the research presented by Ed James, Head of MEED Insights, include an acceleration of project spending in the Saudi market. Last year, the Saudi government awarded close to $70 billion in signed contracts, more than all the other GCC states combined, and is expected to increase expenditure as part of its ninth development plan. "Additional spending announcements following the region's unrest, the kingdom's projects market can only grow in the short to medium term," James added.
Qatar should start to see an upsurge in spending as World Cup gains momentum. And it could be a pivotal year for Kuwait with many of PTB's projects due to be awarded as well as the $30 billion downstream refining program. The UAE cannot decrease much further and should start to rise again. "In 2010, 229 projects due to be awarded were cancelled; this number fell to 137 in 2011. It is down to 109 this year and is set to drop to about 30 in 2013 as developers commit to more commercially viable schemes," continued James.
An expected surge in project activity is also expected in Iraq, as the IOC field concessions result in upstream spending and the political and security situation improves to allow for greater infrastructure investment. Mohammed Al Derajy, Iraq's Construction & Housing Minister, told the Arabian World Construction Summit that Iraq plans to build a total of 2.5 million homes by 2016.
A return to normalcy in Egypt could result in greater government spending, while high oil prices should result in stable spending levels in Iran. Libya has a huge potential that could possibly now be tapped with a new government in place. "We should also see an increase in project activity in Algeria as government pushes ahead with capital investment program. As such, we believe total MENA contract awards will climb to about $70-85 billon in 2012," James said.
Experts gathered at the Arabian World Construction Summit see the near and long-term trend for the Middle East projects market being largely positive. "Oil prices will remain high, while other project market drivers such as rising population and economic growth will remain. The Arab Spring unrest could even be an impetus for capital investment, although larger political, security and bureaucratic issues need to be addressed," said Edmund O'Sullivan, Chairman, MEED Events, organizers of the annual Arabian World Construction Summit.
Local contractors should face stiffer competition from Asian contractors now aggressively pursuing and winning projects. Overall, over next five years, GCC projects market is expected to stabilize around the $140 billion – 150 billion range while the greater Middle East market, boosted by Iraq, could hit as much as $100 billion.


Clic here to read the story from its source.