GCC contracts worth $148bn to be awarded this year
UAE, Saudi Arabia will hand out more than half of all GCC construction contract awards this year
Contract awards for building, infrastructure, and energy construction projects in the Gulf could be worth over half a trillion dirhams this year.
Rising oil prices and government spending will fuel demand for contract awards across the GCC.
Ventures Onsite claim construction contract wins will be worth $148.7bn (AED546.1bn).
According to a white paper published by Dubai research house Ventures Onsite, building project contracts will dominate the market, followed by energy and infrastructure construction deals.
Ventures Onsite predict construction contract awards for building projects will be worth $79bn (AED290bn) this year.
Energy and infrastructure contracts will collectively be worth $44bn (AED161bn) and $24bn (AED88bn) respectively.
Unsurprisingly, the UAE is tipped to lead the GCC for the number of contract awards expected to be issued in 2018. It will account for a third of all construction contract awards in 2018, followed by Saudi Arabia, with a 27% share of contract awards.
Venture Onsite’s report into the value of contract awards was published ahead of the Hardware + Tools Middle East 2018 expo, which kicks off on 2 April.
Speaking ahead of the trade show, Ahmed Pauwels, CEO of Hardware + Tools Middle East’s organiser Messe Frankfurt Middle East, said he believed ongoing investment would ensure contract awards remained steady this year.
“The construction sector is among the chief bellwethers of economic development and progress in the region and the current positive mood is reflected among global hardware, tools and machinery brands looking to gain further traction in one of the world’s most exciting markets today.”
While all expected construction contractor awards across buildings, infrastructure, and energy is worth at more than half a trillion dirhams. Value is stagnant compared to last year’s estimate of $147.8bn (AED542.7bn). This year, contract value will increase by 0.6% increase when comparing 2017 with 2018.