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."

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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.

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.

 

Ashghal to award $329.5 million contracts for healthcare projects

Qatar’s Public Works Authority (Ashghal) announced on Wednesday that it would award work contracts worth $329.5 million for seven major projects, including new health centres and additional operation theatres at the Hamad General Hospital.

 

The projects are part of Ashghal’s ambitious $3.90 billion plans for 2013/2014 to develop 124 building projects across Qatar, a report in Gulf Times, a local Doha based newspaper, said.

 

Emaar apartment sales revenue more than triples

Dubai Developer sees decline in sales revenue from villas, commercial units and land

 

By Deena Kamel Yousef, Staff Reporter

 

Published: 17:30 November 18, 2012

 

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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