The GCC construction sector will continue to record robust activity, with projects worth $72 billion on track to be completed in 2015 following another hectic year that witnessed the completion of projects worth $67.6 billion across all building sectors, according to research released on Monday.
The research conducted by Ventures ME for dmg events estimates that 2015 will see the awarding of new projects valued at $103 billion, up 21.2 per cent compared to 2014, regardless of the predicted economic slowdown in the region in the wake of a plunge in oil price.
The study observed that 2014 was another strong year for the construction market with residential (41.5 per cent), commercial (16.97 per cent) and educational (10.6 per cent) segments representing the highest market shares.
Projects in the hospitality, medical and retail sectors with total values of $4.4 billion, $3.72 billion and $854 million respectively were also completed.
In 2014, $85 billion worth of projects were awarded. The top regional construction markets across all sectors except the retail segment were Saudi Arabia and the UAE.
This is the fourth consecutive year that dmg events, the company behind Index — the leading Mena design exhibition — and workspace at Index, has invested in the study.
Frederique Maurell, group event director for Index and workspace at Index, said 2013 was a strong year for the GCC building construction market with almost all sectors showing significant growth.
“For 2014, we have seen continued growth, with Saudi Arabia, the UAE and Qatar doing particularly well. Looking ahead to 2015, the forecast for both awarded and completed projects shows further increases again, with particularly exciting times ahead for the residential and commercial sectors.”
According to the study, the value of the GCC interior contracting and fit-out market in 2014 was $7.35 billion, with Saudi Arabia and the UAE showing the highest market share within the industry. Saudi Arabia was the highest ranking market with a 43 per cent share ($3.4 billion) followed by the UAE valued at $2.3 billion and representing a 31 per cent market share, the report said.
“For the second year running, the residential sector accounted for almost half of the overall 2014 market with a market share of 41.95 per cent ($3.09 billion). The commercial sector followed with a 17.15 per cent share corresponding to a value of $1.26 billion and the hospitality sector with 13.51 per cent share and a value of $993 million — largely unchanged when compared to 2013,” said the study.
Looking ahead to 2015 projects, the report said that figures across both the building construction and interiors markets are set to increase further. The interiors market is likely to grow by nine per cent.
According to the study, projects in the healthcare sector are expected to grow by 91.12 per cent from $3.72 billion registered in 2014, to an estimated $7.11 billion in 2015. Qatar in particular will be the country with the majority of healthcare buildings completed worth a total value of $2.43 billion, followed by Saudi Arabia with $2.15 billion and the UAE at $1.82 billion.
