Construction companies cashflow concerns diminished in August
MEEDs Construction Market Index recorded a positive result for August with an overall score of 57.9 for the month, which was improvement on the 53.8 recorded for the previous month.
The score suggests that the construction market is showing cautious signs of recovery after two difficult years where government clients have scaled back spending due to lower oil prices, and private sector clients have slowed down on projects in response to a cooling real estate prices.
A score above 50 indicates that the overall market conditions for the construction sector are improving, whereas a score of below 50 shows that the market conditions are worsening. The index is generated by collecting data from construction companies on five key metrics: turnover, backlog/order book, headcount, cash flow, and outlook for the next six months.
The stand out performance of the month came from cash flow, which recorded a neutral score of 50 mean that the issue has not worsened or improved when compared to last month. This was a significant improvement on July, when the score was 38 and the most negative of the five metrics surveyed.
The other two metrics that registered strong improvements were turnover which recorded a score of 71 - up from 62 last month, and outlook which reached 68 up from 62.
These improvements were offset by declines in backlog and head count. The score for backlog was 46, which is down from 50 last month, and for headcount the score remained positive at 53 but did not improve as strongly as the score of 57 it recorded last month.
MEED Construction Market Index August 2016
Podcast
Video:
MEED Construction Podcast - August 2016
August construction news
Doha Metro station
Qatar Rail receives bids for Doha Metro construction works
Qatar Rail has received bids for the contract to complete the major stations works on theDoha Metro project.
Dubai tenders Expo Village construction deal
Dubai World Trade Centre has invited selected contractors to submit bids by 12 October for the contract to build two sections of the Expo Village Development at the Dubai Expo site.
Contractors attend Dubai tall tower briefing
Local developer Emaar Properties has held a briefing with selected contractors to discuss tendering for the 928-metre-plus tall tower it plans to build at its Dubai Creek Harbour development.
Project clients fear contractor meltdown
It is a bad year to be a contractor. Late payments have left the construction industry grappling with a cash flow crisis and some of the regions biggest and most high profile firms are no longer able to pay their bills.
New bid deadline for Dubai towers
Emaar Properties has extended the deadline for contractors seeking work on two towers in the Downtown Dubai area
Local contractor submits low bid for Dubai library
Dubai Municipality has received bids for the contract to build the Sheikh Mohammed bin Rashid Library.
Nakheel transfers funds for $1.2bn sukuk payment
Nakheel, Dubai government-controlled developer of manmade islands off the coast of Dubai, has said it will make the full payment of its AED4.4bn ($1.2bn) trade creditor sukuk upon its maturity, which will make a debt-free entity.
Dubai sets new road construction deadlines
The Roads & Transport Authority (RTA) has set new tender closing dates for six major road construction contracts in Dubai.
Dubai construction is not isolated from global economy
The decision by port operator DP World to slow down, but not stop, the pace of construction work on Terminal 4 and delay an expansion to Terminal 3 is a timely reminder that Dubais projects market may be performing robustly, but it is not completely isolated from the global economy.
Contractors invited to bid for Abu Dhabi tower
Abu Dhabi-based Gulf Related has invited selected companies to submit bids by the end of August for the contract to build a residential tower at its Maryah Central development in Abu Dhabi.
Contractors submit bids for Dubais Museum of the Future
Local developer Meraas has received bids for the contract to build its AED500m ($136m) Museum of the Future.
Dubai Police tenders new academy complex
Dubai Police has invited contractors to submit bids by 19 September for work on a training complex in Dubai.
Contractors are being asked to submit bids for work on the $272m project which involves the construction of a main teaching building and all associated structures near Dubais Emirates road, which is set to replace the existing police academy on Sheikh Zayed Road near Mall of the Emirates.
Saudi contractors must save themselves
The slowdown of the Saudi construction market has not yet bottomed out, say analysts in the kingdom that fear that the worst is yet to come.
Local developer appoints Chinese contractor
Local developer The First Group has appointed a contractor for its hotel project in Dubais Jumeirah Village Circle area.
Egypt awards infrastructure contract for $400m scheme
Egypts Ministry of Housing Utilities and Urban Communities (MHUUD) has appointed local contractor Samcrete for infrastructure and landscaping work on its Zayed Central Park project in Egypt.
Cairo announces $1.8bn housing scheme
Egypts New Urban Communities Authority (NUCA) is planning to develop 116,000 low-income housing units in the Sixth of October City, Minister of Housing Mostafa Madbouly told reporters at a press conference in Cairo.
Habtoor Leighton Group CEO held in Dubai
The CEO of the local/Australian contractor Habtoor Leighton Group (HLG) has been arrested in Dubai, according to a bourse listing by Australian co-owner Cimic, which owns 45 per cent of HLG.
Drake & Scull International records losses
Dubai-listed Drake & Scull International (DSI) has reported revenues of AED1.8bn ($498m) for the first six months of this year, marking a 23 per cent decline compared with the same period in 2015.
Dubai developer appoints contractor for three towers
Local developer Al-Fattan Properties has awarded the $150m main construction contract for three towers in Dubai.
Jumeirah Golf Estates appoints contractor
Local developer Jumeirah Golf Estates has appointed a contractor for the $100m first phase of its Al-Andalus project in Dubai.
Riyadh invites bidders to attend programme management interviews
Saudi Arabias National Project Management Office has invited selected bidders to attend interviews to discuss their offers for the contract to provide consultancy services for the body that will oversee future capital expenditure projects in the kingdom.
Local/Chinese team bids low for Kuwait airport runway
A joint venture of Chinas Avic International Holding Corporation and local Al-Dar (HOT) Engineering & Construction has offered a low bid of KD 149.8m ($497.2m) for the package threeof the expansion of Kuwait International Airport.
Qatar signs major expressway contract
Qatar has awarded a QR7.6bn ($2.09bn) contract to Turkeys Tekfen Construction for the construction of a 34km highway as part of the Al-Khor Expressway project.
Kuwait selects local firm for airport package
Kuwaits Directorate General for Civil Aviation (DGCA) has selected local Al-Dar (HOT) Engineering & Construction Company (HOTECC) for the contract to build aircraft parking and corridors at the Kuwait International Airport (KIA).
Saudi Railways seeks real-estate developers
Saudi Railways Organisation (SRO) has begun prequalifying real-estate firms to prequalify for the project to develop 750,000 square-metres of land in Dhahran.
Ashghal seeks firms for road contract
Qatars Public Works Authority (Ashghal) has invited firms to bid for a contract to upgrade the Al-Furousiya Street in Rayyan Municipality, located to the west of the capital Doha.
The Fujairah Municipality Road Department has invited bids for a contract to widen and redesign sections of the existing E99 coastal road. The project starts from the Yabsa and Sakamkam Road roundabout and goes up to the border of Oman just after the Qidfa area.
Dubai to launch design competition for air traffic control tower
Engineering, design and consultancy firms have been invited to express interest in a design competition for the new air traffic control tower at Al-Maktoum International airport (AMIA).
DP World to slow down Jebel Ali port expansion
Dubai-headquartered port operator DP World has said it will slow down, but not stop, the pace of construction work on Terminal 4, whose original completion date was set for 2018. It will also delay the 1.5 million twenty-foot-equivalent-unit (TEU) capacity expansion for Terminal 3 until 2017.
DP World plans Hyperloop study
Dubai-headquartered DP World plans to launch a feasibility study looking into the value of using Hyperloop systems for moving containers from ships docked at the Jebel Ali port to a new inland container depot.
Iraq is planning to engage the private sector in redeveloping Basra International airport, the countrys second-largest, to cope with an increase in passenger traffic.
Kuwait selects team for temporary airport facility
Kuwait has selected a team comprising Turkeys Cengiz Insaat Sanayi Ve Ticaret and its local agent First Kuwaiti General Contracting for the deal to build and maintain the temporary passenger support building at Kuwait International airport.
Dubai approves transport masterplan
Sheikh Mohammed bin Rashid al-Maktoum, UAE vice-president and prime minister and ruler of Dubai, has approved the Dubai Roads & Transport Authority (RTA)s Traffic and Transportation Plan 2030.
Doha Metro extends project management contract
Qatar Rail has extended the project management services contract for the Doha MetroGreen Line with the joint venture (JV) comprising the US Hill International and local Astad Engineering Consultancy and Project Management Company.
Kuwait seeks consultants for expressway project
Kuwaits Public Works Ministry (MPW) is seeking consultants to undertake a feasibility study and concept design for the improvement of Route 30 Fahaheel Expressway.
Local contractor appointed for Al-Furjan work
Local real estate company Azizi Developments has appointed Al-Kaitoob Building Contracting for several residential and hospitality projects in Dubai.
Nakheel appoints consultant for Deira Islands work
Local developer Nakheel and Spanish hospitality company Riu Hotels and Resorts have appointed Lebanons Dar al-Handasah to oversee the design, engineering and construction supervision of a AED900m ($245m) project in Dubai.
Arabtec reports further losses
Dubai-listed contractor Arabtec Holding has reported further losses in the second quarter of 2016, according to a statement posted on the Dubai Financial Market (DFM).
Bloom Holding awards main contract for Abu Dhabi project
Abu Dhabi-based Bloom Holding has awarded a construction contract to a joint venture of the local Tharwaa and Al-Mansouri 3B.
Emaar appoints contractor for Jeddah Gate work
Dubai-listed Emaar Properties recently awarded Lebanons Arabian Construction Company(ACC) the main construction contract to build three residential towers in Saudi Arabia.
Dubai-based developer Nakheel has awarded a AED1.5bn ($400m) construction contract to the local Dhabi Contracting to build its Al-Khail Avenue mall in Dubai.
Qatar plans mall scheme in Al-Wakrah
Qatars Quality Group International has signed a contract with the local Global Real Estate Company to launch a new shopping mall.
You might also like...
McDermott completes financial restructuring exercise
28 March 2024
Region heads for hotel boom
28 March 2024
Lowest bidders emerge for Kuwait housing project
28 March 2024
Redcon wins Red Sea Triple Bay infrastructure deal
28 March 2024
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.