GCC sees $67.6bn construction projects completed in 2014

[al-Hasani]

GCC sees $67.6bn construction projects completed in 2014​

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By Andy Sambidge

Monday, 16 February 2015 1:30 PM

Construction projects valued at $67.6 billion were completed in the Gulf region during 2014, according to new research published on Monday.

The study conducted by Ventures ME also forecast that the pipeline of projects will continue to grow this year, with development schemes worth $72 billion (up 6.5 percent) to be completed and $103 billion to be awarded across the year.

The figures have been released ahead of INDEX, the MENA Design exhibition which is being held in Dubai in May.

The study said 2014 was another strong year for the construction market with residential (41.5 percent), commercial (16.97 percent) and educational (10.6 percent) sectors representing the highest market shares.

It added that the top markets across all sectors bar retail were Saudi Arabia and the UAE, with Qatar ranking top with completed retail projects worth $362 million.

The value of the GCC interior contracting and fit-out market in 2014 was $7.35 billion, the research showed, with Saudi Arabia and the UAE showing the highest market share.

Saudi Arabia was the highest ranking market with a 43 percent share ($3.4 billion) followed by the UAE valued at $2.3 billion and representing a 31 percent market share.

Looking ahead to 2015 projects, the Ventures ME report highlighted that figures across both the building construction and interiors markets are both set to increase further.

With $72 billion worth of completed projects and $103 billion worth of awarded projects forecast over the next 12 months, the interiors market is also likely to grow by nine percent to $7.35 billion.

The healthcare sector is expected to grow by 91.12 percent this year from a value of $3.72 billion registered in 2014, with Qatar driving the growth.

But despite the large increase in the healthcare sector, the GCC construction market will still be led by the residential and commercial sectors, the study said.

Frederique Maurell, group event director for INDEX and workspace at INDEX, said: “2013 was a strong year for the GCC Building Construction market with almost all sectors showing significant growth. For 2014 we’ve seen continued growth with Saudi Arabia, the UAE and Qatar doing particularly well.

"Looking ahead to 2015 the forecast for both awarded and completed projects shows further increases again with particularly exciting times ahead for the residential and commercial sectors.”

The 25th edition of INDEX International Design Exhibition and the 14th edition of workspace at INDEX will take place at the Dubai World Trade Centre on May 18-21.

GCC sees $67.6bn construction projects completed in 2014 - ArabianBusiness.com