Over 800 urban projects enter tendering phase in GCC
A total of 801 construction projects with a combined estimated value of $32bn (AED117.44bn) are currently in tendering state in the GCC's urban construction sector, according to BNC Network
A total of 801 construction projects with a combined estimated value of $32bn (AED117.44bn) are currently in tendering state in the GCC's urban construction sector, according to BNC Network.
The research firm says these projects will serve as a strong pipeline of projects to be awarded in the near future.
By the end of 2017, the combined total value of urban construction contracts is estimated to reach $50.9bn (AED186.8bn).
BNC Network says that while the value is lower compared to peaks seen in previously, the volume of construction contracts is still large, making Dubai one of the most active construction markets in the region.
BNC forecasting model suggests that there would be an increase of 29% in the total value of contract awards to $65.6bn in the urban construction sector in the GCC in 2018 followed by another 1% growth to reach $66bn in 2019.
The latest BNC Intelligence report shows 292 contracts with a combined estimated value of $9.5bn (AED34.87 billion) were awarded in the second quarter of 2017, within the GCC's urban construction sector that includes commercial and residential buildings, hospitality, healthcare, retail, education, religious buildings, leisure and recreation and mega urban developments.
Some major contract awards in the second quarter of 2017 includes Deira Islands Mall project in Deira Island, Dubai, City Centre - Al Zahia in Sharjah, Yas Acres (Phase 1) in Yas Island, Abu Dhabi and Danat Al Lawzi in Bahrain.
The urban construction contracts constitute 80 per cent of the contracts awarded for all sectors in GCC and in dollar terms this translates to 49% of the total contracts awarded.
BNC Network chief executive Avin Gidwani said: “As the economic growth is expected to pick up pace next year, we expect an increased construction activity across the board in 2018. New project announcements by major developers that have taken place from 2016 till now – will go into tender next year and trigger increased construction activities across the GCC.”