São Paulo – There are 801 urban construction projects currently being tendered in the Gulf Cooperation Council (GCC), amounting to a combined USD 32 billion, the Dubai-based market research firm BNC Network reported this Wednesday (16). The GCC comprises Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, Kuwait and Oman.<\/p>\n
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According to a press release from BNC, by the end of this year, construction contracts in the GCC will have reached USD 50.9 billion. In Q2 alone, 292 such contracts worth USD 9.5 billion between them were signed off. <\/p>\n
BNC claims that although total project value has been higher in the past – in the last four years, for example (see graph) –, the current amount is still “tremendous.” BNC expects total contract value to increase by 29% to USD 65.6 billion in 2018, and by 1% to USD 66 billion in 2019. <\/p>\n
“Events like Dubai Expo 2020 along with stabilization of the oil price and the drive of the various GCC countries to achieve economic diversification and increase in the living standards will play a vital role in the construction industry contract awards,” the press release quoted BNC’s CEO Avin Gidwani as saying. <\/p>\n
Dubai will host the World Expo in 2020, and several projects are underway or being planned as a result. “As the economic growth is expected to pick up pace next year, we expect an increased construction activity across the board in 2018. New project announcements by major developers that have taken place from 2016 till now – will go into tender next year and trigger increased construction activities across the GCC,” he added.<\/p>\n
According to the company, Dubai remains a key regionwide construction industry hub. Contracts signed in Q2 this year include the Deira Island Mall, in Dubai; City Center – Al Zahia, in Sharjah; and residential complexes Yas Acres, in Abu Dhabi, and Danat Al Lawzi, in Bahrain.<\/p>\n
*Translated by Gabriel Pomerancblum<\/strong><\/p>\n