Qatar, KSA and Abu Dhabi lead construction powers

Construction industry continues to grow in Qatar.

Qatar, Saudi Arabia and Abu Dhabi are demonstrating the strongest potential regionally, according to the latest report from Deloitte Middle East, entitled 'The GCC Powers of Construction 2009'.

Qatar’s gas-rich revenues have been ploughed into a construction sector that is set to grow by 17% in 2009, while Abu Dhabi’s 2030 plan continues to drive a strong construction performance.

Saudi Arabia, however, is the runaway leader with around 50% of all building developments within the Gulf taking place within the Kingdom.

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"The publication's release comes at a time when many countries in the Gulf found that their high ambitions for real estate and construction were challenged due to the impact of the global financial crisis," commented Deloitte UAE audit partner and construction industry leader Cynthia Corby.

"We have brought together expertise from Deloitte as well as key regional players such as Arabtec and Construction Products Holding Company (CPC) to give valuable insight into the impact of the crisis on the construction sector in the region, as well as prospects for future growth and demand. The overriding message is one of many opportunities still to be found," Corby added.

The publication also states that developers will face increased challenges due to market conditions, such as more careful managing of cash flows, greater risk assessment before entering new markets and addressing rising finance and insurance costs.

"In the future, governments are most likely to be the dominant force in breathing life into their respective countries' construction sectors," said Deloitte Corporate Finance construction and capital projects advisory leader Rizwan Shah.

"Through leveraging their reserves, they will be able to stimulate their economies to create opportunities for construction and development - emphasising again that, education and health care as well as infrastructure are likely to be the sectors where most demand for building will lie in the future. Another emerging trend linked to this scenario is the increasing occurrence of public-private partnerships."