GCC Contractor Awards to Hit USD 85.6 Billion In 2017
Fair winds are blowing in the regional construction market. According to the GCC Building Construction Market Report created by Ventures Onsite for The Big 5 Heavy, Middle East’s largest event dedicated to the heavy construction industry, the value of new building contracts will hit US$ 85.6 billion in 2017, up 7% from US$ 79.5 billion in 2016.
The UAE tops the regional ranking, with estimated US$ 40.5 billion building contractor awards coming up this year, followed by Qatar (US$ 16.7 billion) and Saudi Arabia (US$ 16 billion). The 2017 figures confirm the UAE construction market’s positive trend, after US$32.6 billion worth of projects were awarded in 2016, the highest value registered since 2008.
Thanks to investments in housing, schools, health facilities and public buildings, Dubai’s construction industry is gaining momentum, The Big 5 Heavy report states. This is further enhanced by the build-up towards Expo 2020, which is expected to award 47 construction contracts worth US$ 3 billion this year.
Construction development in the UAE is not confined within the borders of the Emirate of Dubai: notable projects are sprouting throughout the country. In an effort to broaden its leisure-driven offer, Abu Dhabi is continuing the development of Saadiyat Island, where 1,300 new hotel rooms - mostly in the luxury segment - are in the pipeline. Further 3,500 keys in urban hotels are also expected to be available as part of current plan to increase the contribution of the tourism sector to the diversification of Abu Dhabi’s economy.
“Building materials’ suppliers serving the GCC can expect a robust growth in the coming years. With a number of mega projects underway, rebound of the regional construction sector will roll out its positive results starting from Q3 2017,” Richard Pavitt, Event Director of The Big 5 Heavy, commented.
Indeed, 45% of the building projects in pre-construction phase in the region are in the design stage and 32% in the tender for construction phase, promising a robust pipeline of business opportunities for construction players in the GCC. According to the report, which is available for download at http://thebig5heavy.com/gcc-report.html, the current rise in building materials’ prices indicates that the building industry is expanding with new projects and properties.
Moreover, the introduction of VAT across the GCC starting next January 2018 is expected to further boost the construction sector in the region, as revenues could be used by governments to improve services for citizens, including housing, healthcare and education programs.
Valued US$ 6.8 billion and US$6 billion respectively, Dubai South’s “The Villages” and “The Pulse” are just some of the mega projects in the design phase across the GCC attracting construction industry players from around the world. To effectively respond to the growing demand of building materials and machinery, the organisers of The Big 5 are launching a new dedicated platform for the region’s heavy construction industry to network, collaborate and find new business opportunities.
Formerly known as Middle East Concrete (MEC) and PMV Live, the new standalone event, The Big 5 Heavy, will host five different sections: Concrete, PMV, Roadworks, Mining and Building Materials Manufacturing. Running from 26 – 28 March 2018 at the Dubai World Trade Center, the event will offer CPD certified workshops with free training on the latest trends, innovations and business opportunities, as well as The Big 5 Heavy Recruitment seminars, where visitors will hear from HR specialists and career coaches about job opportunities in the market.
Showcasing latest products and innovative solutions for the infrastructure industry, The Big 5 Heavy will also feature the Inspiring Infrastructure Award for the region’s top engineering consultancies, and The Big 5 Heavy Product Award, which will be awarded to the top products, services and technologies in the industry.
More information about The Big 5 Heavy is available at www.thebig5heavy.com.