The office sector in the GCC still experiencing strong growth
New office projects are set to double between 2009 and 2010 within the GCC according to new research commissioned by dmg world media, organisers of The Office Exhibition. The research estimates that the total value of construction projects for the commercial sector in the GCC between 2009 and 2010 is US$34 billion, with the spend on interior design at over US$4 billion. The UAE is leading the way in terms of new commercial projects, accounting for 66 percent of the total value.
The research was carried out by leading independent research company Ventures Middle East on behalf of dmg world media, and places the UAE office sector ahead of the rest of the region in terms of new office space, accounting for a third of all new commercial construction projects, followed some way behind by Saudi at 14 percent and Qatar at 9 percent.
In the UAE, total office stock in Abu Dhabi is estimated at 1.3 million, with Dubai at 3.1 million. Combined, the new office space in 2009 and 2010 in the UAE is worth US$22 billion, with estimated fit-out and interior design contracting (IDC) spend at US$2.7bn. In KSA, office space of around 8 million sqm is expected to grow between 20-30% by 2012. The total value of new projects is estimated at US$4.8 billion, with fit- out and IDC at US$577 million. In Qatar, Doha’s office market has experienced significant growth, with the value of total commercial office projects expected to be completed between 2009 and 2010 at US$3.1 billion, and IDC and fit-out estimated at US$374 million.
The office stock in Bahrain is estimated at 500,000 sqm, and research suggests there is demand for an additional 80,000 sqm. Additional office space projects worth US$1.4 billion are set to supply the market between 2009 and 2010, with IDC and fit-out at US$172 million. Finally, in Oman, the majority of the office supply and demand is concentrated around the Muscat Governate, with new office projects between 2009 and 2010 estimated to be worth US$710 million, with IDC and fit-out at US$85 million.
Speaking about the research, Sinead Bridgett, The Office Exhibition event director said, “Despite the economic recession, the Middle East remains an attractive location for companies to locate to, and this is borne out by the fact that office space continues to grow within the region. In addition to the significant value of the commercial projects to the construction sector, there is massive potential for interior designers and office suppliers. The Office exhibition brings the office sector from across the globe into Dubai, and provides the ideal opportunity for companies to showcase their products and ensure they are part of this still growing sector.”
Now in its 9th year, The Office Exhibition is the Middle East’s ONLY office solutions event. Set to take place at the Dubai World Trade Centre from 9-11 February 2010, the show will feature over 250 companies, covering an area of approximately 19,000 m2.
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