With member nations planning heavy infrastructure investments, the Gulf region’s construction sector is expected to grow strongly over five years from now.
As per the news reports by
Sindh Today, many countries in the Gulf region are planning to make substantial investments in the region’s infrastructure sector, as a result of which the sector is expected to grow remarkably in coming five years.
Saudi Arabia is planning to invest $400 Billion in the next five years in the construction industry while the UAE and Qatar are planning to invest $275 Billion and $10 Billion respectively in their infrastructure projects. For the UAE and Saudi Arabia, the value of infrastructure projects planned or underway as of July 20, 2009 was $916 Billion and $578 Billion respectively.
Apart from this, the real estate industry is also well poised to grow substantially in Saudi Arabia, Qatar and Abu Dhabi on the back of strong demand and available funding. Large population base, efforts to diversify economy beyond oil and pent-up real estate demand – all promise high for Saudi Arabia’s construction sector.
Moreover, bright prospects for the Saudi housing sector have been supported by a recent industry research report from a leading market research firm
RNCOS. In its report “
Saudi Arabia Housing Sector Outlook”, the firm has stated that Saudi Arabia, one of the key members of GCC, has evolved as a lucrative destination for real estate players to tap unrevealed opportunities in the kingdom’s housing sector. Presently, the kingdom is witnessing heavy shortfall of housing units due to big demand-supply gap.
The after-effects of global economic turmoil will certainly be seen on the GCC, but the region is still expected to post a growth of 3.5% in 2009 against the global growth of 0.5%, which would be the lowest since World War II. Though the commercial changes that have followed the financial turmoil and the risk burden on the contractors indicate that risk management is not at all going to be an easy task; still, opportunities to make profit definitely exist in the GCC.
According to a Research Analyst at
RNCOS, “Some positive indications creeping into the housing sector post-recession are stimulating optimism for the GCC’s construction sector. Moreover, housing shortfall and some major projects in the key economies of the region, alongwith the improving economic scenario, will drive the future growth of the sector.”
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