S05 TRME Construction 2021 Annual Construction_Layout 1 24/08/2021 14:41 Page 16
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Annual Construction Review
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The construction industry embeds key trends such as sustainability and digitalisation across the value chain.
Building back better After all the economic uncertainties brought about by last year’s lockdowns, the outlook is improving for the Gulf’s construction industry. Martin Clark tells us more. HE OUTLOOK FOR construction in the GCC region is looking a little more bullish after the dismal year that was 2020. That confidence is perhaps most visible with the imminent start of Expo 2020, a showcase for some of the industry’s cutting edge technologies, trends and innovations. The Dubai event is now scheduled to run from 1 October 2021 to 31 March 2022 after being pushed back a year by the Covid19 outbreak. Therei is no doubt many firms are still reeling from the events of last year, however. Business volumes slumped in the wake of all the uncertainties surrounding the pandemic and associated lockdowns, which crippled whole economies, meaning one of
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the worst years on record for the big construction groups and their suppliers. Around US$42.5bn of construction and transport project contracts were awarded last year, according to MEED figures, down 26% on the US57.5bn in 2019, already one of the weakest years of the past decade. By way of contrast, the value of contracts awarded in 2013 reached US$87.6bn. Oman seemed to be the worst affected market, with construction output down 10.3%, while Saudi Arabia fared better, recording a 1.9% contraction. Now, with Expo 2020 just around the corner, the hope is that the only way is up.
Market outlook Saudi Arabia, the GCC’s largest economy,
Technical Review Middle East - Annual Construction Review 2021
stands out as a beacon of hope for the region because of its swathe of multibillion dollar mega projects, such as NEOM, the Red Sea Project and Qiddiya, all set to provide a rich pool of work for contractors. Saudi Arabia’s Public Investment Fund is by far the GCC’s biggest construction client, while oil prices have also recovered to 2019 levels, providing a further stimulus to general economic activity. Saudi Arabia alone has almost US$1trn of construction and transport projects planned, representing over half of all yet to be awarded work in the GCC, followed by the UAE. Another barometer is the real estate market, which appears to be accelerating. A Betterhomes report showed that the www.technicalreview.me
