The overall GCC construction market expanded 12 per cent year-on-year, with both Saudi Arabia and the UAE growing by 12 per cent.
Business Bureau, Gulf Today
The six Gulf Cooperation Council (GCC) countries saw the announcement of $125 billion (Dhs458.75 billion) worth of new projects during the first six months of 2019, including $63.5 billion (Dhs233 billion) announced in the second quarter of 2019, BNC Construction Intelligence – the largest construction intelligence provider in the MENA region – says in its latest report.
These are part of the estimated 27,000 active projects live in the GCC, worth US$2.52 trillion (Dhs9.25 trillion) at the end of H1 2019.
Saudi Arabia was the frontrunner in terms of the $63.5 billion (Dhs233 billion) project announcements, comprising 50 percent of the total project announcement in the second quarter of 2019.
During the first half of 2019, project owners in the GCC countries have also awarded new construction contracts worth $49 billion (Dhs180 billion), a 33 percent jump compared to the corresponding period in 2018.
“GCC project awards during first half of 2019 and the second half of 2018 were consistent, saved by the exponential growth in contract awards seen during the first half of the year and the major spike in utility contract awards during the first quarter of 2019,” says Avin Gidwani, Chief Executive Officer of BNC Network.
“The latest BNC Construction Intelligence provides a robust construction sector – not only in terms of new project announcements, but also new construction contracts and project completion, as the development activities gains momentum despite challenges including geo-political tension across the region and slow global economic growth forecast.”
Countries of the GCC region also witnessed the completion of $88.5 billion (Dh324.8 billion) worth of construction projects in the first half of 2019, as the construction sector in the GCC remains robust, BNC Construction Intelligence says.
Construction project completions across all economic sectors in the second quarter of 2019 reached US$46.5 billion (Dhs170.65 billion), while completions were dominated by the urban construction sector with a 46 percent share of the total value of the completed construction projects. The majority of them were registered in the UAE, the second largest Arab economy.
BNC Network, the largest construction intelligence platform in the Middle East and North Africa (MENA), issued the 8th edition of the BNC Projects Journal titled: Economic Tug-of-War that provides a clear picture of the construction project pipeline in the region.
The latest BNC Projects Journal states that the overall GCC construction market expanded 12 per cent year-on-year, with both Saudi Arabia and the UAE growing by 12 per cent.
“Geopolitics during the quarter added drama and insecurity to construction as regulatory changes in the UAE and Saudi Arabia, to uplift the market and invite stability and prosperity, were revealed.” added Avin Gidwani.
The GCC countries have awarded construction contracts for $29.3 billion (Dh107.53 billion) worth of Oil and Gas projects in the first half of 2019, recording a growth of more than 248.3 percent, compared to US$11.8 billion worth of Oil and Gas construction project awards in the first half of 2018.
The US$29.3 billion (Dhs107.53 billion) worth of Oil and Gas project awards in the first half of 2019, surpassed the total Energy sector project awarded in the year 2018 as a whole, BNC Construction Intelligence says.
Saudi Arabia led GCC Oil and Gas project awards with US$15.8 billion while the UAE led utility project awards with $4 billion.
In Saudi Arabia, new Oil and Gas projects worth US$20.4 billion were announced in the second quarter of 2019 while projects worth US$11.3 billion were awarded for construction, it says.
In the BNC Projects Journal, BNC offers the latest industry news and information along with detailed analysis and the current market outlook of the construction sector – which is very crucial for those involved in construction, sub-contracting, mechanical, electrical and plumbing (MEP) as well as building materials supply businesses.
The BNC Projects Journal has been created to encapsulate the essence of these construction analytics, our daily project stories and socio-economic happenings that influence construction.
BNC Projects Journal provides the real story of GCC construction as it happens in a concise and actionable form that allows users to drill down from a story for greater depth and information.
DALIAN: The UAE Government took part in 12 key sessions of the World Economic Forum (WEF) held in Dalian, China, in the presence of more than 1,900 government officials, entrepreneurs and researchers from more than 100 countries. The Forum, held under the title ‘Leadership 4.0: Succeeding in a New Era
DUBAI: Aramex announced its financial results for the second quarter and the first half ended 30th June 2019. The company’s Q2 2019 revenues grew by four per cent to Dhs1,279 million, compared to Dhs1,232 million in Q2 2018. Revenues would have grown by seven percent excluding the impact from currency
Abu Dhabi: A delegation from the Abu Dhabi Department of Energy (DoE), headed by Chairman Engineer Awaidha Al Marar, is visiting Japan this week to share the Emirate’s experience in developing the energy sector and to exchange expertise with Japanese energy ministries and organisations. During the visit, the DoE delegation will place
Blue Ocean Group, a Dubai-based master distributor of consumer electronics, domestic appliances, electrical goods, telecom equipment as well as fashion accessories, today announces its expansion in to the United Kingdom, ahead of Brexit, which is expected to change the market dynamics in the United Kingdom. This makes Blue Ocean Group
Dubai International Financial Centre (DIFC), the leading international financial hub in the Middle East, Africa and South Asia (MEASA) region, and home to the largest, most developed financial technology ecosystem in the region,
Oil prices hit four-month highs on Monday after attacks on crude facilities in Saudi Arabia fuelled worries over the impact of an oil shock on economic growth, halting a positive run in world stocks and bolstering demand for safe-haven assets.
Marwan Bin Haidar, Executive Vice President of Innovation & The Future at Dubai Electricity and Water Authority (Dewa) highlighted Dewa’s role in supporting energy start-ups during a plenary session at the 24th World Energy Congress