GCC has construction pipeline of more than USD1trn
Zawya: Stark facts are often more potent than previews or prognostications. A pipeline of USD 1.085 trillion of projects are in the design, bid or construction stage up to 2037 in the Arabian Gulf, according to data available on the Zawya Projects Monitor. UAE still leads the pack with USD 513.84 billion worth of ongoing projects, followed by Saudi Arabia with USD 335.47 billion.
However, Qatar will see double-digit growth this year while Saudi Arabia and UAE will continue to register single-digit growth, according to leading GCC construction heads. Delays in getting visas for Saudi Arabia continue to the single biggest barrier to doing business in the country, they added.
“The GDP of the GCC has almost quadrupled since 2001 and is likely to reach USD 1.5 trillion in 2013 as the hydrocarbons sector drives growth, assuming average Brent oil prices of USD 108 per barrel in 2012-13. Strong government spending has encouraged diversification, leading to expansion in non-oil sectors. This will be key to boosting real GDP growth to 4.6% in 2012-13,” said a recent Qatar National Bank GCC economic report. Around 86% of the GCC’s USD 1.2 trillion in total revenue for 2012-13 will come from the oil sector, supporting forecast expenditure of USD 1 trillion on social investments, administration and infrastructure development projects. Non-oil industrial growth of 9% will be driven by manufacturing, particularly heavy investments into petrochemicals, fertilizers and metals production in Qatar and Saudi Arabia, and construction, it added.
“Saudi Arabia is very active at the moment, while the rest of the GCC markets have been fairly quiet. Qatar has been slow to start its expected infrastructure projects. But we have seen an acceleration in the last few months on tender releases,” Phillipe Dessoy, general manager of Six Construct, told Zawya.