Strong Dubai market and slowdown in Saudi Arabia and Qatar are dominant themes for first quarter
The UAE accounted for nearly 60 per cent of the $15bn of construction and transport contract awards made in the GCC during the first quarter of 2016.
The high percentage was achieved as awards slowed in previously active markets such as Qatar and Saudi Arabia, while the UAE, notably Dubai, continued to drive forward with new projects.
GCC construction and transport awards in first quarter
- UAE - $9bn (59 per cent)
- Saudi Arabia - $3.1bn (20 per cent)
- Bahrain - $1bn (7 per cent)
- Kuwait - $633m (6 per cent)
- Qatar - $748m (5 per cent)
- Oman - $491m (3 per cent)
Overall, the UAE let just over $9bn of construction and transport deals during the first quarter of 2016, according to regional projects tracker MEED Projects. Dubai accounted for $6.6bn, or 73 per cent, of these awards.
The second-most active market was Saudi Arabia, which awarded $3.1bn of contracts, or about 20 per cent of the GCC total. Before the drop in oil prices that started in 2014, Saudi Arabia was the regions largest construction market.
Surprisingly, Bahrain was the third-most active market, with more than $1bn of awards, or 7 per cent of the GCC total. This was achieved thanks to the award of construction deals for the expansion of Bahrain International airport.
Dubai projects market returns to positive growth
The new Atlantis hotel planned in Dubai
The new Atlantis hotel planned in Dubai
Dubais projects market is back with positive growth after recording its second-best performing quarter since 2008 in the first quarter of this year. The emirate saw $6.6bn of new contract awards made in the period.
The best total since 2008 was in the first quarter of 2014, shortly after Dubai won the rights to host the 2020 World Expo, when there were $8.7bn of new deals let. The all-time record was achieved in the fourth quarter of 2006, when there was $9.3bn of new contract awards. Read More
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