With an expected slowdown in GCC construction awards over the next 12 months projects may require alternative finance packages, with contractors playing a bigger role.

Speaking at MEED’s Construction Leadership Conference in Dubai, Artur Uluc, director of corporate finance at the local Mashreq Bank said: “There are various ways of trying to push people to come up with more innovative financial structures, [but] what is primarily important is that EPC [Engineering, Procurement and Construction] contractors are not interested in building the finance on their own balance sheets. That element of willingness is missing.”

“You need to be selective. You can also try other sources. We have seen Chinese contractors in terms of bringing that Export Credit Agencies (ECA) to the table. It is not widespread, but it is being tried,” said Ulec.

Despite this, the projects market can be encouraged by the fact banks are beginning to conceptualise finance packages that encompass equity market investment, public-private partnership (PPP) funding and contractor financing, he said.