GCC 2015 construction contracts to be worth $194bn
Lower oil prices will result in reduced costs of building materials and transport costs, thus affecting contract values this year, a study states
The total value of construction contracts in 2015 within the Gulf region is likely to be worth at least $194bn, a study has found.
According to GCC Construction Industry - Trends and Challenges for 2015, lower oil prices will result in reduced costs of building materials and transport costs, which is expected to trickle down to contract values.
The figure is $2bn lower than that for last year, Times of Oman reported.
Nevertheless, construction in the GCC will increase in value, despite "a slight dip in the overall contract awards this year", the study stated.
Andy White, vice president of DMG Events Middle East, said: "A lot has been said about how oil prices might affect construction markets. But each of the GCC nations has continued to invest heavily in infrastructure, housing, and healthcare.
"Kuwait has more than tripled its contract awards this year, the Saudi government has made it clear that it will continue to invest, and the UAE has revealed more spectacular projects.
"The GCC Secretariat General has also announced that the Gulf Rail network is meeting construction deadlines and is on track to meet its 2018 deadline," White added.