Saudi and UAE lead Middle East construction market

Pair make up 60% of current project pipeline spending of $2.5tn

NEWS, Business, Projects, Bahrain, Citi, Infrastructure, Kuwait, MENA, Oman, Qatar, Real estate, Saudi Arabia, Uae

Some 60% of the $2.5tn worth of projects in the Middle East and North Africa region are taking place in the twin gulf powerhouses of Saudi Arabia and the United Arab Emirates, according to a new report.

The MENA Projects Tracker published by Citi states that GCC countries are responsible for almost 90% of the projects being built by value, with 60% of those in KSA and the UAE.

It added that major construction and infrastructure projects made up a relatively smaller share of work in other countries, except in Jordan where a spate of building is underway that cost 130% of its current gross domestic product (GDP).

The report classes $1.4tn of this $2.5tn as currently being built, while a further $600bn is at a "relatively advanced" stage of development and the remaining $500bn being early-stage projects.

The bulk of projects under development (just over $1tn) is being spent on real estate projects - be they office, residential or leisure. Infrastructure ($812bn), oil & gas ($376bn) and Power & Water ($298bn) make up the other major spending areas, although priorities vary from country to country, according to the report's author, Farek Soussa.

"For example, there is a heavy bias in the UAE towards real estate projects, while infrastructure projects dominate in Qatar. The oil & gas sector is of greatest significance in Algeria, while Jordan is spending most on power & water," he said.

In terms of country spend, Saudi Arabia leads the way with $784bn worth of projects, followed by the UAE with $669mn.

Qatar is third with $273bn, Kuwait fourth with $249bn and Egypt fifth with $143bn of projects under development. It is also the only non-GCC country with more than $100bn of active projects.


Most popular


CW Oman Awards 2020: Meet the winners
A round of the thirteen winning names at the Construction Week Oman Awards 2020 that


Leaders UAE 2020: Building a sustainable, 'resilient' infra
AESG’s Phillipa Grant, Burohappold’s Farah Naz, and Samana's Imran Farooq on a sustainable built environment
CW In Focus | Inside the Leaders in KSA Awards 2019 in Riyadh
Meet the winners in all 10 categories and learn more about Vision 2030 in this

Latest Issue

Construction Week - Issue 767
Sep 01, 2020