After a weak performance in the previous months due to the pandemic, the GCC construction market began recovering in July.
The latest data from BNC Intelligence showed that the region’s construction sector, valued at $2.4 trillion with over 22,000 active projects, has made a smart turnaround, reporting $11.6 billion worth of new projects launched in July compared to $11.9 billion during the entire second quarter.
BNC Intelligence has the largest and most frequently updated database regarding the construction sector of the Middle East and Africa.
The increase in activity is attributed to the easing of restrictions which were put in place to counter the COVID-19 spread. Structural completion was accomplished for projects worth $30.7 billion while new projects worth $11.6 billion were announced in July.
Also, contracts worth $4.1 billion were awarded to the GCC region. Out of this, the UAE contributed 52% while Qatar contributed 28%.
Experts are of the opinion that the worst is over and outlook for the sector is good.
“With the opening of the economies, we can see a lot of activities, despite the summer season. The economic activities and construction works will grow hand-in-hand from now on. So, we are excited about the prospects. The second half of the year will obviously be much better as business confidence and business activities are up.”
BNC pointed out some of the mega projects that were announced in Saudi Arabia and Oman including the $5 billion Green Hydrogen-based Ammonia Production Facility in the Neom Economic Zone, the $2 billion mixed-use development announced for Durrat Al Nakheel in Al Khobar and the $1.5 billion Low sSulphur Fuel Oil (LSFO) refinery in Oman.
Saudi Arabia led new announcements in July with new scheme announcements worth $8.4 billion, followed by Oman with new announcements worth $2.2 billion. The industrial sector contributed 44 percent of the overall amount of new project announcements followed by a 35 percent contribution from the urban construction sector.