Monday, 21 August 2017 17:10

Just over 800 urban construction projects with a combined value of around $32bn (AED 117.44bn) are currently in the tendering phase in the GCC, according to BNC Network.The total value of urban construction contracts could top $50bn by the end of the year, the research and intelligence provider said today.

 

And BNC is forecasting an increase of 29% in the total value of urban contract awards to $65.6bn in 2018 and $66bn in 2019. It says 292 contracts with a combined value of around $9.5bn were awarded in the second quarter of 2017. Major contracts awarded during the period include Deira Islands Mall in Dubai, City Centre - Al Zahia in Sharjah, Yas Acres (Phase 1) in Abu Dhabi and Danat Al Lawzi in Bahrain.

The GCC's urban construction sector includes commercial and residential buildings, hospitality, healthcare, retail, education, religious buildings, leisure and recreation and mega urban developments. It does not include major energy projects, infrastructure of transportation projects. Urban construction contracts constitute 80% of the number of construction contracts awarded in the GCC, but only 49% of the total value of contracts awarded in dollar terms.

“Events like Dubai Expo 2020 along with stabilisation 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,” Avin Gidwani, CEO of BNC Network, says.

“As 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.”

 

Source : https://goo.gl/m4cL8i

 

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