The total value of 21,893 active construction projects in the Gulf Cooperation Council (GCC) reached $2.4 trillion at the beginning of September 2017, according to a report.

Of these, the total value of urban construction projects reached $1.18 trillion, said the BNC Construction Intelligence report.

This reflects the buoyancy of the project market and the fact that the governments of the six Gulf countries are determined to carry out important infrastructure projects, according to BNC Network.

The urban construction contracts constitute 80 per cent of the contracts awarded for all sectors in GCC and in dollar terms this translates to 49 per cent of the total contracts awarded.

“The governments and the private sector developers of the GCC appear to be unmoved by the slowdown in the global economy and the lower oil price environment. Our latest GCC Construction Intelligence report shows that the projects are going ahead despite the challenging global economic situation,” Avin Gidwani, chief executive officer of BNC Network, said.

“The continuation of these projects, worth Dh8.8 trillion ($2.4 trillion), will keep many businesses, especially the sub-contractors, suppliers remain in business and help save millions of jobs across the region. If these projects continue as planned, the region will not only be saved from a possible recession and job losses, but also these will ensure stronger economic growth,” he added.

The GCC accounts for 85 per cent of all active projects in the Mena and in dollar terms, these projects account for 68 per cent of the total estimated value.

The report was released at last month’s Cityscape Global exhibition in Dubai, during which several new projects were revealed, including a Dh24 billion ($6.53 billion) mixed-use master-planned project in Sharjah, a Dh3 billion ($820 million) new neighbourhood near the University City at Juraina in Sharjah as well as a Dh1.5 billion ($410 million) luxury hotel and residential tower called Dubawi, to be managed by Shuaa Capital.

The value of the oil and gas projects in the Gulf reached $331 billion (Dh1.21 trillion), while the total value of utility project in the Gulf was $302 billion in September 2017, the report showed.

The total value of industrial projects reached $181 billion, according to the report. These project are expected to help the region become self-reliant and less dependent on imported products.

“Events like Dubai Expo 2020, along with the stabilisation of the oil price and the drive of the various GCC countries to achieve economic diversification will play a vital role in the construction industry contract awards,” Gidwani said.

“As the economic growth is expected to pick up pace next year, we expect an increased construction activity across the board in 2018. New project announcements by major developers that have taken place from 2016 till now – will go into tender next year and trigger increased construction activities across the GCC,” he added.

In August, the number of active projects in the GCC increased by 2 per cent as compared to July, 2017 and the total estimated value of these projects increased by 1 per cent.

A total of 142 active projects with a combined estimated value of $14 billion moved to construction from other stages during the month. The largest project to be awarded in August was Phase 1 of Duqm Oil Refinery located in Oman worth $2.75 billion.

In August, 90 active projects with a combined estimated value of $15.6 billion were put on hold in the GCC. The largest project to be put on hold was Section 1 of Phase 1 of Makkah Mass Rail Transit (MMRT) System located in Makkah, Saudi Arabia.

BNC tracks 25,324 live construction projects with a value exceeding $7.2 trillion.