GCC construction to be worth $83.5bn in 2014
A strong sense of optimism is returning to the construction sector in the GCC, as $83.5bn worth of projects are set to be delivered in 2014 - up from $70bn last year.
The figures, by Ventures Middle East, feature in a new report on the market by accountancy firm Deloitte, which stated that the industry is now valued at $1.3tn, with $938bn of projects in the pipeline and the remainder either already tendered, in design phases or under study.
Cynthia Corby, head of Deloitte's construction industry team for the Middle East, said government-led spending is likely to continue shaping the market due to a greater focus on infrastrcture projects.
"With all this extra infrastructure spend, jobs will be generated, with some estimates claiming 30% of the potential 300,000 jobs created by Expo 2020 in the UAE alone is expected to be in the construction sector," she said.
"The Dubai government has also announced that all new and existing construction projects are going to be fast-tracked to be ready for 2020.
“The demand for skills and resources will, of course, increase and we would hope that a well-planned and phased development strategy will prevent the price for these resources and for talent from becoming disproportionately expensive,” she added.
The report highlighted Saudi Arabia, the UAE and Qatar as the three key growth markets, but added: "Work is picking up in Kuwait and Bahrain, both of which have had their own problems over the last few years, but it is Oman that is the one to watch looking forward.
"Oman has budgeted for continued strong spending on its infrastructure and tourism sectors. The country announced $15.5bn of spending on rail at the end of 2013, as well as the construction of a new town in Duqm."
Source: Construction Week