Construction projects worth $103 billion are likely to be awarded this year in the GCC, an increase of 21.2 per cent over last year, according to a study.
Projects across all building sectors valued at $67.6 billion were completed and contracts worth $85 billion were awarded during 2014 in the region, according to the study conducted by Ventures ME.
The research, done for dmg events, estimates projects worth $72 billion (6.5 per cent increase) will be completed in 2015. This is the fourth consecutive year that dmg events – the company behind Index, the leading design exhibition in the Middle East and North Africa (Mena), and workspace at Index – has invested in the study.
The year 2014 was another strong one for the construction market with residential (41.5 per cent), commercial (16.97 per cent) and educational (10.6 per cent) segments representing the highest market shares.
Hospitality, medical and retail buildings were also completed – with total values of $4.4 billion, $3.72 billion and $854 million respectively. The top markets across all sectors, bar retail, were Saudi Arabia and the UAE, with Qatar ranking top with completed retail projects worth $362 million.
The value of the GCC interior contracting and fit-out market in 2014 was $7.35 billion – with Saudi Arabia and the UAE showing the highest market share within the industry. Saudi Arabia was the highest ranking valued at $3.4 billion followed by the UAE valued at $2.3 billion.
For the second year running, the residential sector accounted for almost half of the overall 2014 market with a share of 41.95 per cent ($3.09 billion). The commercial sector followed with a 17.15 per cent share corresponding to a value of $1.26 billion and the hospitality sector with 13.51 per cent share and a value of $993 million.