$2 trillion GCC construction projects planned

Construction will continue in the GCC

Following on from news that government-led investment in major infrastructure projects has helped to reduce contraction in the construction industry in Gulf Co-operation Council (GCC)countries, comes the announcement that an astonishing US$2 trillion worth of projects are being planned, or are underway.

The news was released at the MEED's 2010 Arabian World Construction Summit(AWCS) on Saturday and will be greeted with a great sense of relief by construction businesses in the region, who feared that the sector had permanently stalled.

Speaking at the event, Edmund O'Sullivan, chairman of MEED Events said that "in 2009, almost US$52 billion worth of contracts were awarded in the GCC region and we expect this level to rise in 2010. The total value of infrastructure contracts increased by 11 percent to US$15 billion in 2009, from US$13 billion in 2008. There are significant opportunities in key areas such as infrastructure, transportation and housing and they will continue to lead the construction industry for years to come.

"Reflecting this trend, AWCS will serve as a forum to discuss the opportunities and challenges in the sector while offering new business prospects. The summit has served as a great information and networking platform for the last two years and we are confident the upcoming edition will offer many business leads to participants."

Infrastructure MENA has previously reported that Abu Dhabi leads the way in GGC infrastructure expenditure due to their extensive 2030 Vision project.

Growth markets

Saudi Arabia has also been touted as an area of extreme growth, with its population of 29 million expected to rise to 33 million within the decade. As such, home construction is a vital necessity and there is already a shortfall of between 160,000-200,000 homes a year.

As such, the Kingdom needs another 1.2 million homes by 2015, but currently forecasts predict it will only be able to manage 190,000. However, Saudi Arabia is also heavily investing in other parts of its infrastructure with US$69 billion being put aside for projects such as "social infrastructure, universities and hospitals, railway lines, airports and ports."

At the summit, Dr. Faysal Alaquil, director, Business Development of Construction Products Holding Company (CPC) said of Saudi Arabia's growth, "As one of the largest and most lucrative construction products companies in the region, CPC has been involved in strategic and important projects throughout Saudi Arabia and its surroundings.

"As infrastructure investment in Saudi Arabia has been steadily growing in tandem with its vastly growing economy and population, CPC has been fortunate enough to be involved in the participation of the construction development of Saudi Arabia. We are delighted to be taking part in the 2010 Arabian World Construction Summit and look forward to meeting our peers to discuss numerous opportunities we have to offer."

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Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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