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The UAE is planning to carry out projects in construction and other sectors worth around $494 billion, accounting for nearly a third of the total projects planned in the region, according to a Gulf business chief.


Despite tightened bank lending in the region, he construction market in the six-nation Gulf Cooperation Council (GCC), which controls more than a third of the world's proven oil deposits, remains one of the most active sectors in the world, with its value standing at nearly $1.5 trillion, said Abdul Rahim Al-Naqi, Secretary General of the Dammam-based Federation of GCC Chambers of Commerce and Industry (FGCCI).

Naqi said he saw a boom in the GCC contracting sector, with Saudi Arabia and the UAE alone planning to carry out projects worth $629 and $494 billion respectively.

"The GCC residential and commercial construction market is highly competitive and fragmented, marked by the presence of several small and big players across the value chain. The increased competition within the sector is likely to result in competitive bidding by the players and this is expected to drive down the profit margins of construction companies further... Many of them already suffer from high prices," he said.

Naqi said a trend by foreign firms to enter the GCC construction market in partnership with local companies would help reduce risks by both sides.

He said foreign companies, seeking to tap what he described as massive investment opportunities in the region, have the capabilities of handling large and complex projects. "They are entering the GCC construction sector either in partnership or joint venture with established local players. The partnership or the joint venture model mitigates the business risk of both the partners significantly," he said.

"In pursuit of expanding their top line and geographical presence, the established construction and real estate companies are looking to grow both organically as well as inorganically through M&A route."

Emirates 24|7

UAE NEWS

MOHAMMAD BIN RASHED CITY DUBAI

By Shane McGinley

 

 

Published: Wednesday, 28 November 2012 3:01 PM

 

 

Dubai will not have to depend on global financial markets to fund large-scale projects announced within the last few weeks as it has access to sufficient funding from within the UAE.

 

The head of Dubai Economic Council told reporters on Wednesday.

 

10 new malls coming up in Qatar

At least 10 new malls, four-five shopping centers and three-four hyper markets are planned within Doha and the neighboring areas within the next four years, a report by Al Asmakh Real Estate Development Company (Aredc) indicates.

The highest demand for existing and new outlets has been coming from the garment segment and luxury brand stores. Restaurants and coffee shops come next, says the report.

Qatar's food industry to grow fastest in GCC

Qatar's food production industry accounts for only about 7% of the country's domestic consumption, a new report said yesterday highlighting its dependence on food imports for local needs.

 

In 2010, Qatar produced 0.1mn tons of foods across categories, the GCC food industry report said yesterday.

"Qatar is an important business hub in the GCC. Qatar is more affluent compared to other member countries in GCC with the highest per capita income. With an enviable economic outlook and growing private consumption, food consumption in Qatar is forecast to grow at a compound annual growth rate (CAGR) of 5% up to 2017," the report said.

New city to rise within Dubai: Shaikh Mohammad

The new city will feature world class leisure facilities for 35 million visitors

 

WAM

 

Published: 16:07 November 24, 2012

 

Dubai: His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice- President and Prime Minister of the UAE and Ruler of Dubai, has announced the establishment of a new city within Dubai, setting new benchmarks in urban development in the region.

 

Construction in Qatar to grow by 19%

The Middle East's construction sector, including Qatar, has been forecast to grow by 19 percent in 2013, with the combined value of completed projects set to reach $81.6bn. And projects worth $64.5bn are set to be awarded before the end of the second half of the year, according to Aldes Middle East, a leading provider of firefighting and ventilation solutions. Given Qatar's immense growth potential of the construction and real estate sector, the company has stepped up its expansion initiative with the planned opening of a new office in Doha.

ifpinfo

5 September

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