MEEDs 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
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
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 contractors 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.
MEED Construction Podcast – September 2016
September construction news
Fast-track project due for completion ahead of Expo 2020
At least 11 firms are competing for the contract
Two firms are competing to build the landmark scheme
Majid al-Futtaim retail centre will be built on the outskirts of Muscat
Twin tower development will be built next to Jumeirah Beach Residences
Tower will be more than 300 metres tall and completed ahead of 2020 Expo
Prices were first submitted in August
Estimated $1bn retail centre is one of Dubais largest building projects
Project is latest retail centre to be tendered in the emirate
Smart city project is scheduled for completion in 2018
A contracting joint venture had been selected for the construction deal earlier this year
At least five firms competing for construction deal
Contractors submitted bids in August
New infrastructure will be built accross the emirate
New entity will target upcoming government infrastructure schemes in the kingdom
Majid al-Futtaims Zahia Mall will have 400 shops
Kingdom wants to reduce spending by about a quarter
Homes will be built in Dubais Nad al-Sheba area
Two towers will be built in Downtown district