February 4, 2013
The total value of building projects in Gulf Cooperation Council states will exceed $80 billion this year according to a new report from dmg::events* in conjunction with consultancy Ventures Middle East. The survey concludes that this year will see a near one fifth increase in the overall value of projects up from nearly $69 billion in 2012 to $81.6 billion in 2013. Meanwhile the interlinked market for interior contracting and fit-out in 2012 was valued by the report at $7.86bn – a 56 per centincrease on 2011. The UAE continues as the the region with the largest interiors spend ($2.83bn), followed by Saudi Arabia ($2.6bn) and Qatar ($1.49bn).
The 2012 increase in construction activity follows on from even higher rates of growth in 2011 when GCC countries saw an overall increase of 48 per cent. Much of the growth is accounted for by projects in the hospitality, education and medical sectors, not least as part of the region’s ongoing commitment to invest in public infrastructure projects as a way of energising the economy as we reported recently. The report concludes that the corporate real estate sector remains somewhat sluggish in comparison.
* Yes, that is how they spell it – with two colons.