MEED’s Construction Market Index (CMI) recorded a positive result for September with an overall score of 56.4 for the month, although the score was down by about one point from the 57.9 recorded for August.

MCI July-September 2016

MCI July-September 2016

A score above 50 indicates that the overall market conditions for the construction sector are improving, whereas a score of below 50 indicates 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.

MCI September 2016

MCI September 2016

The most positive of the five metrics surveyed in September was turnover which registered a score of 63.6. This was down from a score of 71.4 in August. As turnover increased, backlog registered a negative score of 45.5 – the worst performing of the five metrics in September, down from 46.4 in August.

The decrease in backlog suggests that not enough new work was awarded in September to replenish contractor’s order books. This could be explained by the weeklong Eid holidays during the month.

There were still some major awards. MEED reported contract awards during September on projects including the Sheikh Mohammed bin Rashid Library in Dubai, Silicon Park in Dubai, Maryah Plaza in Abu Dhabi, and Diyar al-Muharraq in Bahrain, a Saudi Aramco residential compound, Saudi economic city villas, and the Pearl Qatar.

There also appears to be improving sentiment for cashflow with the score moving above 50 for the first time. In August the score was neutral at 50, and in July the score was the worst performing metric with a score of 38 – the worst performance by a single metric since the index began. In September it was 59. The move into positive territory could be due to payments being released after delays during the summer months. 

Video:

MEED Construction Podcast – September 2016

 

September construction news

Dubai tenders world’s tallest tower

Fast-track project due for completion ahead of Expo 2020

Dubai sets October deadline for tram tender

At least 11 firms are competing for the contract

Contractors submit revised offers for Museum of the Future

Two firms are competing to build the landmark scheme

Contractors submit bids for Mall of Oman

Majid al-Futtaim retail centre will be built on the outskirts of Muscat

Emaar Hospitality to manage Dubai Marina towers

Twin tower development will be built next to Jumeirah Beach Residences

New deadline for Dubai tower construction tender

Tower will be more than 300 metres tall and completed ahead of 2020 Expo

Contractors submit revised offers for Dubai retail district

Prices were first submitted in August

Nakheel sets October deadline for mall construction deal

Estimated $1bn retail centre is one of Dubai’s largest building projects

Emaar tenders Dubai shopping mall

Project is latest retail centre to be tendered in the emirate

Chinese contractor wins Dubai business park construction deal

Smart city project is scheduled for completion in 2018

Nakheel to retender Palm Gateway towers

A contracting joint venture had been selected for the construction deal earlier this year

Qatar receives bids for largest World Cup stadium

At least five firms competing for construction deal

Two shortlisted for Dubai’s Museum of the Future

Contractors submitted bids in August

Dubai receives bids for $800m of road projects

New infrastructure will be built accross the emirate

Saudi Aramco negotiates mammoth project management deal

New entity will target upcoming government infrastructure schemes in the kingdom

Bidders attend Sharjah mall meetings

Majid al-Futtaim’s Zahia Mall will have 400 shops

Riyadh seeks consultant to plan spending cutbacks

Kingdom wants to reduce spending by about a quarter

Nakheel awards villa construction contract

Homes will be built in Dubai’s Nad al-Sheba area

Emaar receives bids for Dubai towers construction

Two towers will be built in Downtown district