17/08/2017 07:32 AST

As many as 801 construction projects with a combined estimated value of Dh117.44 billion ($32 billion) are currently in the tendering stage in the GCC's urban construction sector, according to a report.

These developments will serve as a strong pipeline of projects to be awarded in the near future, according to BNC Network, a comprehensive project research and intelligence provider in the Middle East and North Africa (Mena) region.

By the end of 2017, the combined total value of urban construction contracts is expected to reach $50.9 billion. While this is lower than the peaks seen in prior years, the volume of construction contracts is still tremendous and Dubai remains the most active construction market in the region, the report said.

BNC forecasting model suggests that there would be an increase of 29 per cent in the total value of contract awards to $65.6 billion in the urban construction sector in the GCC in 2018 followed by another one per cent growth to reach $66 billion in 2019.

The latest BNC Intelligence report shows that 292 contracts with a combined estimated value of $9.5 billion were awarded in the second quarter of 2017 within the GCC's urban construction sector that includes commercial and residential buildings, hospitality, healthcare, retail, education, religious buildings, leisure and recreation and mega urban developments.

Some major contract awards in the second quarter include Deira Islands Mall project in Deira Island, Dubai; City Centre - Al Zahia in Sharjah; Yas Acres (Phase One) in Yas Island, Abu Dhabi; and Danat Al Lawzi in Bahrain.

The urban construction contracts constitute 80 per cent of the contracts awarded for all sectors in the GCC and in dollar terms this translates to 49 per cent of the total contracts awarded, it said.

“Events like Dubai Expo 2020 along with stabilisation of the oil price and the drive of the various GCC countries to achieve economic diversification and increase in the living standards will play a vital role in the construction industry contract awards,” Avin Gidwani, chief executive officer of BNC Network, said.

“As the economic growth is expected to pick up pace next year, we expect increased construction activity across the board in 2018. New project announcements by major developers that have taken place from 2016 till now – will go into tender next year and trigger increased construction activities across the GCC,” he added.

Trade Arabia

Ticker Price Volume
QNBK 135.21 176,223
SABIC 110.20 4,338,435
BURUJ 34.50 80,357
PETRORABIGH 24.78 1,456,662
STC 78.50 497,315
EEC 15.20 2,114,364
JULPHAR 2.30 0
Dubai’s Future Blockchain Summit to unlock multibillion dollar opportunities


In line with the Dubai Blockchain Strategy, announced by Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum, crown prince of Dubai and chairman of The Executive Council, which mandates that Dubai becom

Saudi Gazette

Nearly 85% of Dubai's property market components are tax free


Dubai's real estate will feel little impact from the UAE's recent introduction of VAT, with nearly 85 per cent of the industry’s components tax free, officials said on Tuesday.

The UAE has

The National

Qatar Chamber discusses challenges facing private sector


Qatar Chamber board member Ali Abdul Latif Al Misnad has said that the chamber is committed to providing all possible support for the private sector in order to do its expected role in the economic b

The Peninsula

Risk and funding costs weigh on UAE banks


UAE banks continue to perform well, albeit at lower levels of profitability caused by costs growing at a faster pace than operating income, according to the latest UAE Banking Pulse report from Alvar

Gulf News

Sharjah established women-only business portal


The Sharjah Business Women Council (SBWC) and the Sharjah Economic Development Department (SEDD) have launched a platform available to women entrepreneurs, aimed at accelerating processes such as app

Gulf News