Gulf real estate development breaks through $1 trillion
The Arabian Gulf real estate construction boom has broken through the $1 TRILLION mark, according to the most up-to-date industry intelligence on current active projects in the region.
The sheer scale of new development in the GCC countries of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates is impressive by any standard. According to data from Dubai-based research company Proleads, there are now a total of 885 active civil buildings projects in the region, each with values of more than $10 million.
The total value of these projects alone is in excess of $1 TRILLION - covering all forms of buildings in the commercial and residential sectors and including educational establishments, healthcare facilities, cinemas, theatres, sports facilities, hotels and theme parks as well as mixed use and retail developments.
Active projects in this case refer to those that are in some form of planning, study, design, bidding or construction - not simply concepts - and do not include those already completed.
This latest assessment of the building boom in the Arabian Gulf came as Cityscape, the world’s biggest business-to-business real estate show, took place in Dubai, United Arab Emirates.
The top five active civil projects in the GCC with a total combined value of $358 billion are:
1. The $120 billion King Abdullah Economic City in Saudi Arabia
2. Kuwait’s $86 billion Silk City project
3. Dubai Investment’s $60 billion Dubailand
4. The $53 billion Prince Abdulaziz Bin Mousaed Economic City in Hail, Saudi Arabia
5. Abu Dhabi’s $39 billion Yas Island development
The Proleads data is even more impressive if all other forms of related civil construction are added, including roads and bridges, reclamation schemes, airports, ports, railways, canals and utility networks. The total number of regional projects then rises to a huge 1,654 and a staggering total combined value of more than $1.25 TRILLION.
Not unexpectedly, the United Arab Emirates and Saudi Arabia account for the lion’s share of civil building development. In the UAE alone there are a total of 390 projects with a combined total value of more than $430 BILLION, according to the Proleads data. Saudi Arabia is not far behind with 330 such projects with a total value of more than $409 BILLION.
Total residential projects across the GCC number more than 340 with a combined value of over $81 BILLION. The UAE is well out in front in terms of residential projects with more than 230 currently active and a combined value of over $59 BILLION.
Total commercial projects across the region number 144 with a combined value of over $17 BILLION. Again the UAE leads the way with 81 of the commercial projects and a combined value exceeding $10 BILLION.
Further analysis of the Proleads database shows that the total number of hotel projects in the Arabian Gulf with an individual value of more than $10 million standing at 96 with a combined total value of $190 BILLION.