GCC countries still investing in construction despite low oil price
Following a study by Ventures ME, in which the GCC was reported to have realised $67.6 billion worth of construction projects in 2014, a new audit report by Deloitte, this time, is predicting 2015 could reach $172 billion.
This last figure would be the highest on record despite the current conjecture of low price of oil and continuing political upheaval all around the Middle East. The GCC countries benefitting from accumulated reserves built up when the barrel of oil was at premium, seemed not affected at least up to now.
Therefore, they are expected to continue with their programmes of major capital projects and all related infrastructure development. Their repeatedly outlined strategy was to diversify their economies away from its fossil energy source base.
The heavy projects todate are :
- In the UAE
- The Dubai’s Al Maktoum International Airport expansion valued at $32 billion
- Abu Dhabi’s Al Gharbia Chemicals Industrial City estimated at $20 billion
- Miscellaneous buildings throughout the Emirates at $24 billion
- In Saudi Arabia
- Al Mozaini Real Estate in Riyadh at $15 billion
- Al Khozam Development in Jeddah at $13.3 billion
- Miscellaneous education, healthcare, power and infrastructure at some $39 billion
- Qatar has a $15 billion expenditure mostly on road and rail infrastructure with all accompanying buildings and related ancillaries.