The GCC’s construction industry is upbeat foreseeing growth from 2015 to 2018, said Alpen Capital in a report.
The growth hopes are based on factors such as favourable macroeconomics, positive demographics, and rising tourism activities, according to Sameena Ahmad, managing director of Alpen Capital (ME).
In Saudi Arabia, efforts to boost religious tourism have translated into higher budget allocations towards the hospitality, retail, and infrastructure sectors, said the investment bank in its GCC Construction Industry report. The need to create affordable housing options and the recent law allowing for mortgages are expected to result in a rise in construction activities in the near future, it said.
Optimistic forecasts for the UAE’s construction sector for the next few years is based on an economic recovery, safe-haven status, liberal investment climate, relatively advanced real estate regulatory framework, as well as a buoyant infrastructure project pipeline as part of the country’s strategic vision 2021.
The outlook for Qatar’s residential, hospitality, and infrastructure construction markets appears optimistic due to a healthy population growth, mega events, and the growth of the economy, the report added.
The construction industry in Oman is expected to remain robust, driven by an increase in infrastructure projects planned by the government, tourism projects, an undersupplied residential market, as well as the construction of commercial space.
In Kuwait, the construction industry is set to thrive, driven by the infrastructure sector, new projects from the private sector to address the need of affordable housing, and an increase in demand for commercial space.
Developing its infrastructure and reducing its affordable housing shortage remains the principal focus of the government of Bahrain in the coming years, the report said.