As many as $125 billion worth of new projects have been announced in the GCC countries during the first six months, including $63.5bn worth of developments announced in the second quarter of 2019, according to a new report.
These are part of the estimated 27,000 active projects in the GCC, worth $2.52 trillion at the end of the first half, said regional construction intelligence provider BNC Group in its latest report.
Saudi Arabia was the frontrunner, riding high on the back of $63.5bn in project announcements, comprising 50pc of total project released in the second quarter, it stated.
During the first half of 2019, project owners in the GCC countries have also awarded new construction contracts worth $49bn, a 33 per cent jump compared to the corresponding period in 2018.
Unveiling the report, BNC chief executive Avin Gidwani said: “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.”
“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 geopolitical tension across the region and slow global economic growth forecast,” he added.
The GCC states also witnessed the completion of $88.5bn worth of construction projects in the first half as the region’s construction sector remained robust.
The construction project completions across all sectors in the second quarter surged to $46.5bn with the list dominated by the urban construction sector with a 46pc share of the total value of the completed construction projects. The majority of them were registered in the UAE, the second largest Arab economy, said the report.
The latest BNC Projects Journal states that the overall GCC construction market expanded 12pc year-on-year, with both Saudi Arabia and the UAE growing by 12pc.
“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,” said Mr Gidwani.
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