01 September 2020

THE GCC’s construction market is showing early signs of recovery with projects worth $30.7 billion achieving construction completion in July and $11.6 billion worth of new projects being announced, according to a report by BNC Projects.

The GCC construction market is estimated at $2.4 trillion, with over 22,000 active projects at the end of July, thus indicating early signs of the sector’s recovery even as the Gulf nations start easing Covid-19 restrictions, stated the BNC report.

A number of mega projects were announced in Saudi Arabia and Oman including the $5-billion green hydrogen-based ammonia production facility in the Neom Economic Zone,a $2-billion mixed-use development announced for Durrat Al Nakheel in Al Khobar and the $1.5-billion Low Sulphur Fuel Oil (LSFO) Refinery in Oman.

Saudi Arabia drove new announcements in July with $8.4-billion worth of new scheme announcements, followed by Oman with $2.2-billion worth of  new announcements.

The industrial sector contributed 44 per cent of the total value of new project announcements followed by the urban construction sector with 35 per cent contribution.

July thankfully ended the Q2 hibernation, remarked Avin Gidwani, CEO of Industry Networks.

Acccording to him, project awards in July were driven by the UAE with a 52 per cent share. Transport, utility and the urban construction sectors were the frontrunners in terms of contract awards with 38 per cent, 31 per cent and 26 per cent share, respectively.

 The UAE achieved construction completion and handover of the Barakah Nuclear Power Plant Phase One project which is currently operational and the Dubai Metro Red Line Extension Route 2020; while the Offsites & Utilities (Package 3) for Al Zour New Refinery was completed in Kuwait.

The total value of project completions in July was significantly higher and recorded a 84 per cent hike when compared to the total value of project completions in the entire Q2 2020 owing to the completion of a number of mega projects, stated Gidwani.  

• Mid-2021 launch date for Oman’s mega solar plant
• Fluor JV completes Kuwait clean fuels project
• Low oil prices, Covid ‘hit Mideast capital projects’
• Bahrain Water Garden Phase Two work on track
• Madayn to establish Oman Nano City
• Sector sees recovery; $11.6bn new projects

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