Airports captured the bulk of transportation contracts awarded in the first five months of 2012 with $2 billion worth of projects throughout the GCC. Road construction came in second with $1.6 billion worth of contracts; followed by port projects valued at $1.2 billion while rail contracts awarded reached $424 million.
The data was released by MEED, a leading provider of business intelligence, ahead of the Arabian World Construction Summit 2012, which will present a comprehensive overview of construction and infrastructure projects across key sectors and markets in the Arab world.
Saudi Arabia awarded the second largest contract with the $ 765 m deal secured by a consortium of Turkey’s TAV, the UAE/Australian Al-Habtoor Leighton Group, and the local Al-Rajhi Group for the construction of maintenance hangars at Jeddah airport.
”Governments across the GCC will continue to invest in the infrastructure sector to support economic growth, and one of the busiest will be the transportation sector. Airports are currently leading the boost, as tourism continues to be a major growth driver in the region,” said Edmund O’Sullivan, chairman, MEED Events.
”The GCC will continue to be a beehive of activity from ongoing projects and future investments. However, we will also hold special sessions on Iraq and Egypt and the massive opportunities at stake for contractors, financers and project owners,” added Sullivan.
With almost $300 billion worth of projects to be awarded until 2016, construction costs will play a key role in both project conceptualization and execution. Construction Products Holding Company (CPC), a Saudi-based conglomerate and one of the biggest suppliers of construction and building materials in the region, expects construction costs to level off this year. “This provides a great incentive to investors and developers to embark on new projects, which will further boost economic activity in the region,” said Faysal Alaquil, director of business development and CSR at CPC.