NEW YORK, Oct. 27, 2016 /PRNewswire/ -- Report Highlights:
GCC Construction Contract Awards from 2005-2015- By Country, GCC
Future construction contract awards from 2016-2020- By Country, GCC
Construction Contract Awards by Sub Sectors, GCC Projects On Hold,
GCC Cancelled Projects, GCC List of Projects to be awarded in 2016,
GCC Energy, Utilities and Industrial Project Spend – 2010-2020, GCC
Real Estate Contract awards – 2010-2020, GCC Transport Contract
Awards- 2010-2020, GCC Social Infrastructure Project Awards –
2010-2020, GCC Power Sector Project Spend Analysis-2010-2020, GCC
Oil and Gas Project Spend Analysis 2010-2020, GCC Industrial
Projects Spend 2010-2020, GCC Waste and Water Project Spend
Analysis 2010-2020, GCC Mixed Use Projects Spend Analysis
2010-2020, GCC Airport Projects Spend Analysis 2010-2020, GCC
Railway Projects Spend Analysis 2010-2020, GCC Road Construction
Projects Spend Analysis 2010-2020
GCC infrastructure market is witnessing many changes, particularly
in the Government investment plans after the oil prices slashed
half from 2010 numbers (down from ~USD
110 a barrel in 2010 to ~USD
50 in 2015). Pressure has increased on these oil based
economies creating huge fiscal pressure. In Saudi Arabia – the biggest construction market
on basis of contract awards, the fiscal deficit soared to
USD 98 billion in 2015 from
~USD 15 billion in 2014. The country
has already initiated to consolidate its investment in the need
based sectors from any luxurious project investments.
GCC Construction Opportunities till 2020
1) UAE: Post the announcement of Dubai 2020 expo event, the Emirate is a wave
of opportunity with Government setting aside DH 17 billion in 2016
budget for infrastructure development till 2020. The investment
will a spread over different asset classes broadly covering
housing, roads, railways, schools, health facilities and public
buildings. Abu Dhabi is the next
destination for investors eyeing long term growth. The emirate has
earmarked USD 100 billion to be
invested till 2030 and majority of it will be ploughed in real
estate and transportation sector. However, the country is also
speculated to be under financial constraints which could impact the
execution of the big plans
2) Saudi Arabia has huge pipeline
of megaprojects (i.e. projects worth USD 1
billion and above) with more than 80% of the investment
flowing through these multi-billion dollar projects. Of the
megaprojects pool, the top 3 ones includes the most talked about
projects: KA CARE Renew*able Energy Program worth USD 150 billion alone, Saudi Arabia Rail
expansion program worth USD 97
billion and KACARE Nuclear Power Reactor worth USD 70 billion. However, Saudi Arabia has many projects undergoing
overruns especially time overruns. Most of these megaprojects are
facing overruns during the construction period
3) As the host country of FIFA 2022, Qatar has invested a huge sum over the last
few years in the development of the required infrastructure. The
country has devised plans to draw USD 222
billion of amount by 2022 for the infrastructure projects
including stadiums, hotels and other transport related facilities.
In the year 2013 when Qatar won
the FIFA 2022 bid, it had awarded projects worth more than
USD 50 billion. The country still has
many infrastructure opportunities with a huge pipeline of projects
planned to be awarded between 2016 and 2020
4) In the future, Kuwait and
Oman have a huge pipeline of
multi-billion dollar projects planned and are the next hot spots in
the GCC infrastructure market
GCC Construction Market Risks and Challenges
Though GCC infrastructure has a robust project pipeline of
USD 2 trillion to be awarded from
2016-2020, there are many market and project level risks prevailing
and obstructing an effective project delivery or growth of
companies:
1) The average contract sizes of projects in GCC has multiplied
over years and currently, a large share of these projects are
contracts worth USD 20 billion and
above. This signifies the increasing complexity of projects
2) Declining project performance: A large share of the total GCC
projects have faced either time overrun or cost overrun and the
impact has been substantially huge. Average project cost overrun in
GCC has been more than 60% and the average time overrun is approx.
4 years of delay
3) Other factors include extreme consolidation of the owners
landscape with a huge preference for the local contractors,
tightening financial market resulting in delays in sourcing the
required funds, conservative approach towards PPP projects, huge
dependency on equity and so on
The report titled 'GCC Construction Outlook to 2020 – Track
USD 2 Trillion of Infrastructure
Opportunities with Sector Deep Dives', provides a detailed sector
and country level analysis of the infrastructure and construction
industry with a thorough sub-sector level spend forecast. The
report is useful in understanding the growing markets as well as
list of top projects across the 6 memeber countries. The report
includes market sizing of upcoming or un-awarded project contracts
at a more granular level and provides forward-looking analysis on
top clients or owners with their respective working or partnership
model.
How BrikStats Report Helps?
- Find the growth pockets in the GCC market by mapping future
opportunities against risks and returns across the six countries
including UAE, Saudi Arabia,
Qatar, Kuwait, Bahrain and Oman and sectors
- Formulating internalization or expansion strategies, i.e.
companies entering or plans to enter the GCC or Middle East infrastructure / construction
market
- Enable existing companies to increase their market share or enter
new sub-sectors by tracking recent trends and changing market
dynamics
- Find business leads and plan business development goals through
in-depth industry analysis along with 5 year forecast
Read the full report:
http://www.reportlinker.com/p04029853-summary/view-report.html
About Reportlinker
Reportlinker is an award-winning market research solution.
Reportlinker finds and organizes the latest industry data so you
get all the market research you need - instantly, in one place.
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