Gulf construction market growth hopes grow with US$11.6bn worth of projects
The Gulf Cooperation Council (GCC) construction market is showing early signs of recovery with projects worth US$30.7 billion achieving construction completion in July and another US$11.6 billion worth of new projects being announced, according to a report by BNC Projects.
The GCC construction market is estimated at $2.4 trillion, with over 22,000 active projects at the end of July, thus indicating early signs of the sector’s recovery even as the Gulf nations start easing Covid-19 restrictions, stated BNC in its latest edition of the Journal titled, “The Great Awakening.”
A number of mega projects were announced in Saudi Arabia and Oman including:
- $5-billion green hydrogen-based ammonia production facility in the Neom Economic Zone;
- $2-billion mixed-use development announced for Durrat Al Nakheel in Al Khobar;
- $1.5-billion Low Sulphur Fuel Oil (LSFO) Refinery in Oman.
Saudi Arabia drove new announcements in July with $8.4 billion worth of new scheme announcements, followed by Oman with $2.2 billion worth of new announcements. The industrial sector contributed 44% of the total value of new project announcements followed by the urban construction sector with 35% contribution.
The UAE achieved construction completion and handover of the iconic Barakah Nuclear Power Plant Phase 1 project which is currently under operation along with the Dubai Metro Red Line Extension Route 2020 while the Offsites & Utilities (Package 3) for Al Zour New Refinery was completed in Kuwait. The total value of project completions in July was significantly higher and recorded a 84% hike as compared to the total value of project completions in the entire Q2 2020 owing to the completion of a number of mega projects.