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 HÍREK

Ybn Taj Arabia to begin construction in June 2013

Construction of the Taj Arabia, the $1 billion replica of the Taj Mahal, is set to begin by June 2013 in Falconcity, the sprawling mega-project on the outskirts of Dubai, the developer behind the project has announced.

 

In a report by Gulf News, Arun Mehra, director of Link Global, said that the 400 room, five star hotel, would be managed by Leela Palaces, Hotels and Resorts, an Indian based hotel operator with 15 palace hotels.

 

 

Doha Metro to have 48 stations

The 131-km Doha Metro Railway will have at least 48 stations and half of the entire facility would be built underground at depths up to 50 meters. In a presentation, Qatar Rail commercial manager Stephen Lines disclosed that the elevated portion of the Metro railway is 48km long. Construction has started this year and it is expected to be completed in 2019.

 

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.

491 ongoing hotel projects in the Middle East

The Middle East and Africa (MEA) hotel development pipeline comprises 491 hotel buildings, which gives a total of 120,795 rooms, according to the June 2013 STR Global Construction Pipeline Report. The total active hotel pipeline data includes projects in the "in construction", "final planning" and "planning" stages, but does not include projects in the 'pre-planning' stage.

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