Contract award growth of 8% predicted for 2011

Contract awards may grow by 8% in 2011, but are heading for a relative decline in 2010.

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A new report from Ventures Middle East, a research company, is predicting a growth of 8% in the value of contract awards to the GCC’s main contractors in 2011.

This figure has been released as part of GCC Construction Industry – Facts & Figures July 2010. For 2010 Venture’s research is predicting a decline of 4% in the value of awards made across the GCC, compared to 2009 figures, however, there is an outside chance of growth.

“Positive growth for 2010 is still achievable if there are no further delays [to] projects under final design stage and tender stage and [they] progress to contractor finalisation before the end of the year, however chances are slim,” said the report.

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A comparison of projects on hold show that some 39% of the UAE’s total project value is currently on hold. The same figure for Saudi Arabia is just 3%, demonstrating the construction industry’s resilience in the Kingdom.

The smaller Gulf States of Qatar, Kuwait and Bahrain are all expected to manage growth in awards for 2010, with Qatar leading the way.

“Qatar [is] likely to hit a record growth of 48% over 2009, in terms of contracts awarded, albeit on a smaller base compared to that of the UAE,” said the report.

For more information, or to order the full report, contact: mail@ventures-me.com.