Middle East construction investment
By KHL Group29 March 2011
There seems to be a mood of renewed optimism at this week's Intermat Middle East event in Abu Dhabi concerning construction investment throughout the region.
According to Deloitte Middle East's latest GCC Powers of Construction report, the UAE has 36% (or US$958 billion worth) of total construction projects in the region, and is expected to see its construction industry grow by a compounded annual growth rate (CAGR) of 9.6% between 2010 and 2014.
The Kingdom of Saudi Arabia, on the other hand, currently has a 38% share of the total construction projects in the region, and is expected to launch contracts worth US$86 billion in 2011. Currently the Kingdom has US$624 billion worth of projects planned or underway. Qatar has a 15% share and the country has the biggest growth potential as its CAGR from 2010 to 2014 is estimated to reach 12%.
In addition, Qatar will also host the 2022 World Cup, where investments of up to US$75 billion for infrastructure, public facilities, security services and products, sports facilities, tourism, communications and transportation to manage the event are expected.
Further afield, Algeria recently unveiled a US$286 billion five-year infrastructure spending plan.
The bold economic and social development plan, consists of $156 billion worth of investments in new projects and $130 billion spending on existing programmes, including the completion of rail, road and water projects. The new projects include infrastructure for public works, transport, health and education services and two million new housing units.