Special report: Gulf construction - Building pressures

18 February 2005

The coming year is likely to be one of the best on record for contractors in the Gulf, but cost considerations will dominate their day-to-day business.

Index of stories in this special report: Gulf construction - Building pressures

Introduction: Squeezing the margins
Overall construction costs have risen by as much as 15 per cent in the last year in some cities, squeezing the margins of many contractors and bringing others closer to the edge of bankruptcy.

Cement industry surges forward
The GCC construction boom has led to supply constraints and rising prices in the cement sector. A new HSBC report suggests mergers, acquisitions and foreign involvement could be the way forward.

Bahrain: Movement in Manama
Both new and old industries are providing plenty of construction work, and the private sector is picking up steam.

Egypt: Ready for take-off
A stronger Egyptian pound will encourage activity this year.

Iran: Smaller firms keep busy
The big-ticket projects have been hamstrung by political wrangling but work still abounds.

Iraq: Conditioned by concerns of security
As Baghdad develops democratic institutions, the risk-to-reward ratio is weighted heavily against contractors.

Jordan: More plans than action
Several urban, tourist and infrastructure projects are on the table, but Amman is lagging behind the pack.

Kuwait: No cap on spending plans
The government is at last able to green light major capital expenditure on infrastructure and other projects.

Libya: A year of opportunity
The growing interest in Libyan real estate from regional investors is only part of the Jamahiriya's story.

Oman: Gathering momentum
Sohar projects will provide multiple opportunities.

Qatar: Calling all major-league contractors
The gas boom is driving increased activity across the entire market.

Saudi Arabia: Time for munificence
Funds continue to flow into the kingdom's core sectors.

Syria: Projects and potential
Some sectors are benefiting more than others as Damascus begins to increase investment in infrastructure.

UAE: Bigger, better, bolder
Funds continue to flow into the kingdom's core sectors.

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