The GCC construction market is estimated at $2.4 trillion, with over 23,000 active projects by the end of the first quarter, according to a new report by BNC Network.
GCC construction market shifted focus towards driving ongoing projects to completion in Q1 2020 and was cautious in new announcements as well as contract awards, it stated.
The latest BNC Projects Journal said $48.4 billion worth of projects had been completed in Q1, mainly driven by the UAE and Saudi Arabia with 38% and 27% contribution respectively.
The energy sector registered $12.9 billion worth of project awards in Q1 driven by the UAE and Saudi Arabia with 42% and 40% contribution respectively, it stated.
The GCC construction sector registered a 4% YoY growth in March which was primarily driven by the energy sectors with oil & gas and the utility sector expanding by 16% and 7% YoY respectively. The industrial sector grew marginally by 4% YoY while the GCC transport sector contracted by 5% YoY, the report added.
“As Covid infects the global economy, no industry or business is truly immune. The obvious fallout in terms of delays due to the disruption to work on sites, material supply disruptions due to closed factories, and shipping delays are symptoms of an economic disease that can and must be addressed,” remarked Avin Gidwani, CEO of Industry Networks.
“The economic malady affecting construction is clearly contagious but unlike the coronavirus, it spreads only when businesses break connections in the flow of commerce by breaking their commitments to pay,” said Gidwani.
“We must remember that this disease isn’t just testing our business acumen – it’s testing our humanity,” he stated.
According to him, new projects worth $21 billion were announced in Q1 with the largest contribution being made by the UAE with a 59% market share followed by Qatar and Oman.
The total value of contracts awarded during the first three months stood at $23.5 billion, while $3.1 billion worth of contracts were awarded in March, he added.