The Gulf’s construction sector is tipped to bounce back over the next two years after a pandemic-affected 2020, with regional construction contractor awards in 2021 and 2022 expected to be worth $115.2 billion and $111.8 billion respectively.
A new whitepaper published by intelligence platform Ventures ONSITE said government stimulus spending aimed at economic recovery was the key driver of a market rebound, after a tough year in 2020 when contractor awards dipped to $75.2 billion following Covid-19 lockdowns and oil price fluctuations.
As of June, the total GCC construction project market was estimated to be worth $3.2 trillion, covering buildings, infrastructure, and industrial, along with the power and water and oil and gas sectors.
Buildings, comprising residential, commercial, mixed use, airports, sports facilities, hotels, healthcare, and education facilities, will be the largest contributor to construction sector in 2022, with new contractor awards estimated to value $45.1billion, according to the research, followed by oil and gas projects ($22.6 billion) and infrastructure ($17.5 billion).
The UAE and Saudi Arabia are at the forefront of the sector, with building construction contractor awards in 2022 expected to be worth $11.4 billion and $20.1 billion in these countries respectively.
Qatar, which is set to host the football world cup next year, will list $5.5 billion worth of building contracts.
The whitepaper further stated that despite the oil price slump and the pandemic in 2020, which led to budget adjustments in many GCC countries, the private sector is expected to play a key role in building construction projects.
Housing, healthcare, infrastructure, hospitality, and education projects are likely to keep the building construction sector busy with a robust pipeline of projects in design and tender stage in addition to active master development schemes, it added.
Ventures ONSITE’s whitepaper was published exclusively ahead of the annual three-day Light Middle East exhibition, which takes place from September 28-30 at the Dubai World Trade Centre.
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