GCC’s buzzing construction industry
As GCC governments set the way to build better, more efficient, smart and sustainable cities, the construction industry is poised for stronger growth with value of all the current active projects in the GCC estimated at US$ 2.6 trillion.
Out this an overwhelming 70% of the GCC’s active construction projects are in the UAE and Saudi Arabia.
With 4,627 active projects in Dubai, and over 11,700 projects worth USD 818.2 billion across the UAE, the construction sector is strengthening its position as a key pillar of the national economy.
The Super Sectors are projects in strategic areas such as Energy, Transportation, Power and Water, with an estimated value of projects exceeding US$1 trillion.
GCC Construction Market – Fast Facts
-US$130 billion is the value of completed projects in the GCC in the year-to-date
-There are 2000 hospitality and leisure projects underway across the GCC with combined worth estimated at US$ 200 billion
-The combined value of the GCC’s 361 active projects in the Oil and Gas sector is worth US$331.4 billion
-There are 30 hospitality and leisure projects in the GCC with a ticket price of $1 billion or more
Economic Diversification by Investing in Hospitality and Leisure Sectors
Hospitality and leisure markets in the UAE and Saudi Arabia currently make up 74% of all related projects in the GCC region. According to the “GCC Hospitality and Leisure & Recreation” report by BNC Network, the expanding tourism sector is a key driver for increasing hospitality and leisure projects in the region.
By adding hospitality and leisure projects to their portfolio, and developing the tourism sector in their countries, GCC governments are actively moving toward economic diversification and sustainable growth. Investments in the hospitality and leisure projects as a result, are adding significant growth the construction sector as a whole.
Mega developments in the top ranking countries include the Hospitality District in Dubai’s Mall of the World (UAE) and Phase 1 of the Red Sea Touristic Development in Tabouk (Saudi Arabia). Behind the UAE and Saudi Arabia, Oman has the third highest value of hospitality and leisure investment with the Tourism Resort project in Duqm being valued at USD 20 million.
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Dubai and Abu Dhabi account for approximately 81% of all hospitality and leisure projects in UAE, with the country as a whole being listed by BNC Project Intelligence as having the most competitive tourism sector in the GCC.
Infographic – GCC Construction Market
Here’s a neat Infographic by Big 5 detailing the highlights of the GCC’s construction industry in 2017.