RIYADH: Saudi Arabia continues to lead Gulf Cooperation Council countries in the construction sector, accounting for 63% of the region’s planned future projects, Meed’s GCC Construction Outlook report revealed.
The UAE stood second in this ranking of future projects with a share of 21.5%
With some $1.4 trillion worth of construction and transport projects planned in the GCC yet to see their main contracts awarded, the report noted that the pipeline of future project opportunities is vast.
It reiterates Saudi Arabia’s pivotal status in the region as the country has started focussing on the growth of non-oil sectors.
“For future growth, much depends on Saudi Arabia, which plans to deliver some $1 trillion of projects,” the report noted.
It added that the construction industry in the GCC is showing signs of a rebound due to the sustained recovery in oil prices that started in the second half of 2020 and continued through 2021 and into 2022.
The report further stated that the return of international travel and rising property prices are enabling renewed private investment in the real estate sector in GCC.
However, the report warned that the ongoing war in Ukraine is a reminder that recovery could be fragile. It also added that supply chain bottlenecks and rising costs may affect projects that are dependent on foreign materials.
Source: Arab News