Roads ahead

The GCC has $142bn worth of road projects underway or planned, representing a major sector of construction that is attracting foreign contractors

The importance of road infrastructure in the construction industry is underlined by the fact the GCC has $142bn in road projects underway or in the planning stages, according to figures released by market analyst Ventures Middle East.

While the UAE may have suffered in other areas of construction such as retail and commercial following the global economic downturn, it is forging ahead with more than $58bn worth of road and bridge projects, including Abu Dhabi’s $25bn Surface Transport Master Plan (STMP).

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Saudi Arabia has $48bn worth of projects either planned or underway, while Qatar continues with its infrastructure developments for the 2022 FIFA World Cup, with road projects valued at US$17bn in progress.

Kuwait has $9.4bn worth of projects in the pipeline, including the Jaber Al Ahmed Al Sabah Causeway, while Oman has road projects worth US$8bn, representing 5.5% of the regional total, with another $2bn worth of schemes at various stages in Bahrain.

As an example of the ongoing activity in this important sector, Saudi Transport Minister Jabara Al-Seraisry recently signed 16 contracts worth more than $597m to construct 969 km of roads in various parts of Saudi Arabia, the Saudi Press Agency has reported.

The projects include completion of the Hair-Houta Road, linking it with Hareek, and construction of the 46km Niam link road at a cost of $118.9m. The project was won by Omeir Trade & Contracting Company.

A number of new road projects will also be implemented in Makkah province, including the Hada-Jamoom ring road at a cost of almost $26.6m. It will be implemented by Masharie Al-Watan company.

Al-Seraisry has also met with nearly 350 investors and economists in Makkah. He said his Ministry was currently implementing projects worth $1.4bn in the province. Al-Seraisry added that the Haramain Railway, linking Makkah and Madinah, which will be completed in six years will cost $10.66bn.

Saudi Arabia’s Ministry of Transport has also approved eight new road projects in the Eastern Region at a combined cost of $217.3m. Mohamed Al Suwaiket, assistant for technical affairs and general supervisor of the roads and transport general directorate in the Eastern Region for the Ministry of Transport, told the Saudi-based Al Riyadh daily newspaper that there were currently 40 projects underway in the region, worth a combined total of more than $1.59bn.

In addition, a further eight stalled road projects in the region are expected to resume work shortly, and will be completed by the end of the year.

Earlier this year, Saudi Arabia issued contracts for the building of 1,865km of roads as part of its nationwide programme of road building. Al Seraisry signed off on a collection of contracts valued at $634m in May.

The contracts were awarded as part of a wider programme of road building, with the Kingdom budgeting $3bn for up to 389 new road projects that will stretch for a total length of 6,600km.

The UAE is forging ahead with its own major road projects. An $89m contract for the third phase of the upgrade of Emirates Road was awarded recently, although the recipient of the contract was not been named.