The total value of construction projects in the Gulf region has reached $1.68 trillion, according to a latest report by online project tracker BNC Network.
Of this, $489.39 billion worth of projects are currently under construction, $81.45 billion worth of projects are in the tendering phase, $125.12 billion worth of projects are in design phase while $265.25 billion worth of projects are in the initial planning and concept phase. However, nearly 43 per cent or $723.61 billion worth of projects – the largest category of projects – are still on hold, the report shows.
“Despite the economic slowdown caused by the global financial crisis in 2008-09, the Gulf region still remains one of the largest construction market in the world after China where several large-scale projects are still on track,” said Ben D’Souza, Chief Operating Officer of BNC Network. “This reflects the governments’ determination to continue to invest in expanding their infrastructure that will help spur economic growth at a time when Europe and the US economies are struggling amid crisis after crisis.”
The UAE is still the largest construction project market – with value of projects totalling $690.2 billion that includes $429.23 billion worth of projects on hold. Saudi Arabia is the second largest construction market where the total value of projects have exceeded $451.09 billion, including $100.96 billion worth of projects that are on hold. This is followed by Kuwait where total value of projects reached $195.99 billion including $61.47 billion worth of projects are currently on hold or cancelled. Qatar, which has won the bids to host World Cup Football 2022, ranks fourth among the six countries with total value of projects exceeding $171 billion of which $69.14 billion worth of projects are on hold.
Among some of the large projects, the UAE National Railway, and the Jeddah Metro project will dominate the infrastructure sector while massive investment in power and desalination projects are also going to play a key role in the region’s overall development.