Page 49 - September 2020

Report

GCC construction sector begins

recovery as economies open up

The GCC construction market has begun to RizwanSajan, founder and chairman of Danube
recover in July after a poor performance in the Group, recently said the worst is over and outlook
previous months of pandemic, the latest data from for the sector is good.
BNC intelligence showed. “With the opening of the economies, we can see
The regional construction market, which is a lot of activities, despite the summer season.
estimated at $2.4 trillion with more than 22,000 The economic activities and construction works
active projects, made a smart recovery, recording will grow hand-in-hand from now on. So, we are
$11.6 billion worth of new projects announced in excited about the prospects. The second half of
July as compared to $11.9 billion for the whole of the year will obviously be much better as business
second-quarter. confi dence and business activities are up,” said
The increase in activity is attributed to regional Sajan.
countries started to ease restrictions imposed to BNC said mega projects were announced in Saudi
counter the spread of Covid-19. Projects worth Arabia and Oman including the $5-billion Green
$30.7 billion achieved construction completion Hydrogen-Based Ammonia Production Facility in
while new projects worth $11.6 billion were the Neom Economic Zone, the $2 billion mixed-
announced in July. use development announced for Durrat Al Nakheel
While contracts worth $4.1 billion were awarded in in Al Khobar and the $1.5 billion Low Sulphur Fuel
the GCC with the UAE and Qatar contributing 52 Oil (LSFO) Refi nery in Oman.
per cent and 28 per cent, respectively Saudi Arabia drove new announcements in
“July marked the beginning of the post-Covid July with $8.4 billion worth of new scheme
awakening for construction in the GCC, thankfully announcements, followed by Oman with $2.2
ending the Q2 hibernation,” said AvinGidwani, billion worth of new announcements. The industrial
CEO of Industry Networks. “As your business sector contributed 44 per cent of the total value of
awakens, take nothing for granted and stay away new project announcements followed by the urban
from the temptation of using the past to forecast construction sector with 35 per cent contribution.
the future.”

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