But trouble could be ahead for construction projects if the low price persists, says Laing ORourke
The falling oil price has had little impact to date on the construction sector, but could result in project delays if it continues to be low, says Mark Andrews, managing director of the Middle East division of the UKs Laing ORourke.
In an exclusive interview with MEED, Andrews says companies have to question whether there will be an impact in the future.
Some Gulf countries have got significant investment funds and could weather the storm of a low oil price for some time to come. But I think what we will see projects being delayed until they get a bit more comfortable. There are rumours already [that some] investment programmes have been put back.
Video:
Mark Andrews, MD, Laing ORourke, part 1
Dubai though is all systems go, he says, because it is less reliant on oil, although external funding could dry up. And those in the planning stage that require external credit could suffer.
Laing ORourke is focusing on the general construction market. Andrews says he expects less high-end hotels and a move towards more affordable. Last year, the company won the deal to build Majid al-Futtaims Hilton Garden Inn hotel in Dubai.
In the first of our two-part video interview, he says the company is interested in airports and hospitals under the right circumstances, but not chasing infrastructure projects.
In part two of MEEDs interview, he explains why he would like to see more contracts issued on a design and build basis, the need for proper training in construction, the number of people the company plans to employ this year and some of the projects Laing ORourke is working on
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