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

$330 million contracts for 7 health projects in Qatar

Qatar’s Public Works Authority ‘Ashghal’ announced that work had started on the construction of seven new healthcare projects with a total value of QR1.2 billion ($330 million).

 

The contracts include the construction of additional operation rooms at Hamad General Hospital, in addition to five healthcare centres at Al Nuaim, Al Muntazah (Rawdat Al Khail), Al Karaana, Al Roda and Al Ghuwairiyah, and the construction of a health and wellness centre in Umm Slal.

 

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.

Food sales to exceed $70 billion in Saudi Arabia

Food sales in Saudi Arabia are expected to be worth almost $70 billion by 2016, with food consumption growing at a CAGR of 2.6 per cent from 2012 to 2017.

Saudi Arabia is the region’s biggest food consumer and, according to Alpen Capital, will account for 60 per cent of total consumption by 2017.


While Saudi Arabia is also the region’s largest food producer, representing 74.1 per cent of total production in the GCC, it imports more than $14.2 billion worth of food and beverage products each year to meet its consumption demands. According to BMI’s recent Q1 2013 report this will rise to $35.2 billion by 2020.

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.

 

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