KSA, Qatar stay strongest - infrastructure is king

Graham Wood, group director of CityBuild Abu Dhabi.

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Saudi Arabia and Qatar remain the Middle East countries least affected by the downturn, according to information from Proleads.

Research conducted by the company calculated that there are roughly half a trillion dollars in building projects around the region, though only 48% of them are actively being executed.

“With a large and young population, Saudi Arabia has domestic demand that will ensure growth in all sectors as young Saudis enter the workforce every year,” said Emil Rademeyer, director of Proleads Global.

“The government has prioritised job creation. This in turn requires heavy investment in infrastructure such as power, water, utilities, transport and healthcare. In addition, with the oil price comfortably above $70 and forecast to remain there, many infrastructure projects are certain to come to fruition. Therefore, the medium term outlook for Saudi Arabia in particular is positive.”

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The opportunity represented by infrastructure work is one organizers of CityBuild Abu Dhabi, a trade show, are keen to emphasise.

“Government or government-related investment in shipyard, seaport and airport expansions; new hospitals, colleges and universities; as well as major road upgrades now make up a significant and growing proportion of the region’s construction activity,” said Graham Wood, group director of CityBuild Abu Dhabi.

“The Q4 2009 report published by Proleads features a table of projects varying in value from $50 million to $5 billion. It shows that in most of the six GCC countries it is infrastructure-related projects that are leading the way, funded by government ministries, authorities or government-related entities. Although the entire GCC has been affected by the global downturn there are still tremendous opportunities throughout the region,” added Wood.