Price drop could hurt GCC construction in 2017
Aluminium extruder NAPCO's CEO says his company's and the construction industry's 2016 performance "depends on the oil prices"
The ramifications of diminished oil prices could hit the regional construction industry in 2017 if prices do not recover next year.
Robert Holtkamp, CEO of Omani aluminium extruder NAPCO, told Construction Week his company looks steady in terms of projects for next year.
When asked how he expects demand for his products to shape up in 2016, Holtkamp replied: "It all depends on the oil prices.
"Budgets have already been allocated for projects in 2016 so we will be busy, but if the prices do not jump up [then] we will feel it in 2017."
Holtkamp added demand for NAPCO's products this year has been "excellent", and the company's "machines have been running at capacity".
Industry experts agree the drop in oil prices has made the Middle East more hesitant about its investments this year.
It has also previously been suggested that the volatility in oil prices will impact Oman's economy in 2017.
In September 2015, Siraj Bhavnagarwalla, senior executive officer at Alpen Capital, warned that the Sultanate could face financing roadblocks in light of oil price volatility.
"Such a situation may push the Omani government to restrict state spending, hampering the growth of the construction industry, which is materially dependent on government funding," Bhavnagarwalla said.
Holtkamp was in conversation with CW on the heels of Construction Week Awards 2015.
Commenting on his attendance at the event this year, Holtkamp added: "The event gathers high-profile industry related professionals, and we want to continue to maintain our visibility to this elite group."