GCC – The combined value of the 22,680 active construction projects in the GCC has exceeded $2.43trn in November 2017, according to latest GCC Construction Analytics report issued by BNC Network, the largest and most comprehensive project research and intelligence provider in the Middle East and North Africa (MENA) region.
Of these, the urban construction sector has the highest number of projects, touching 17,912, worth $1.21trn, followed by utilities sector with 1,701, transport sector 1,423, industrial 1,289 and oil and gas projects 355.
However, combined value of 1,423 transport projects reached $387.6bn, followed by oil and gas projects valued at $337bn, utilities worth $313bn and industrial project value reaching $178.6bn.
The GCC region, which includes the six hydrocarbon-rich six countries, Saudi Arabia, UAE, Oman, Kuwait, Bahrain and Qatar with a combined gross domestic product (GDP) of S$1.4trn – have undertaken massive development and construction activities to diversify their economies.
“Clearly, the governments of these countries are investing their current oil wealth and resources to build a better future that will serve the future generations well even when oil runs out or use of oil reduces to the minimum,” Avin Gidwani, Chief Executive Officer of BNC Network, says.
In 2016, the GCC countries pumped an average of 18.3 million barrel per day. According to GCC Secretariat, the Gulf countries’ non-oil exports reached $113.1bn while oil exports fetched $357.8bn in 2015.
“Much of these are being invested in large infrastructure, housing and commercial projects that will have a far-reaching impact on the region’s economies,” said Gidwani. “According to the GCC Secretariat, the total budget deficit of $152bn reflects the simple fact that the governments are spending fast and higher to build the economies.
“In terms of number of projects, these represent 85% of all active projects in the MENA region and 68% in terms of estimated value in US dollar terms.
“This also shows that most of the Middle East’s construction and development activities are concentrated in the Gulf region as the governments of the six oil-rich countries are spending their resources in time to diversify the economy by developing the infrastructure, housing and commercial real estate to build strong national economies and preparing the economies for the post-oil era.”
In the third quarter of 2017, as many as 269 projects with a combined estimated value of $82.85bn were announced in the GCC.
In October, the number of active projects in the GCC increased by 2% as compared to September 2017 and the total estimated value of these projects increased by 1%. A total of 142 active projects with a combined estimated value of $10.4bn moved to construction from other stages during the month. A total of 670 active projects with a combined estimated value of S$15.2bn were completed during the month.