Construction spend in Gulf up 13% to $65.5bn

The value of construction projects being awarded across the Gulf is expected to increase by 13% to $65.5bn in 2012, according to new research.

Around 48% of the new project work is being generated in the UAE, while a third has originated in Saudi Arabia.

The research – carried out by Ventures ME on behalf of the Interiors and Design Exhibition (INDEX) – also revealed a 71% hike in the number of contracts expected to complete in 2012 to $79.8bn (2011: $46.5bn).

The industry has been boosted by strong growth in the demand for commercial real estate, where project values virtually doubled to $15.3bn ($7.7bn). This has been attributed to a strong demand for retail property from luxury retailers. Hotel and hospitality-related projects have also increased in value by over 170% to $7.3bn ($2.7bn).

NDEX director Naomi Barton said: “One of the findings from the report is that GCC countries spend more money on average on interior contracting and fit-outs elements of a construction project than their counterparts in the US, Europe and Japan.

“The hotel and hospitality sector is the biggest segment spender, with over 22.5% of total project cost allocated to interior contracting and fit-out projects – more than any other sector within the GCC’s building construction industry.”

INDEX runs from Sept 24th-27th at Dubai World Trade Centre.

constructionweekonline, Jul 30, 2012