New construction contracts in GCC could be worth $138 billion in 2019

New construction contractor awards in the Gulf Cooperation Council (GCC) are estimated to be worth around $138 billion this year, as interest builds ahead of Hardware and Tools Middle East 2019.

According to a report by projects intelligence platform Ventures ONSITE, 64% of GCC construction contractor awards in 2019 will be based in the UAE and Saudi, who are leading the way with a full list of projects coming online. The two countries are contributing $48.3 billion and $40.1 billion respectively to the total sum of new projects for the year.

The May 2019 report said the Gulf’s construction industry has had a good year so far, with more growth anticipated on the back of continued economic diversification and government policy reforms to encourage foreign direct investment.

Major UAE projects to be awarded this year include the $5.2 billion Stage 2 of Etihad Rail, Gasoline and Aromatics Project ($3.2 billion), the Dubai Creek Harbour – The Tower ($1.5 billion), and Seven City JLT ($354 million).

Buildings comprise the highest value of new construction projects in Saudi this year according to Ventures ONSITE, valuing $18.6 billion, compared to $11.3 billion in 2018, a 64% increase.

Ventures ONSITE’s report was prepared exclusively ahead of the Hardware and Tools Middle East 2019  trade fair, which takes place next month from 10-12 June at the Dubai International Convention and Exhibition Centre.

New features this year include a two-day Additive Manufacturing conference, where international front-runners in 3D printing for the construction, manufacturing, oil and gas, ship building and automotive industries will share their insights into the future of this fast-growing technology.

Show Director Dishan Isaac, said: “Healthy levels of growth in the construction sector have a direct impact on demand for the latest tools, hardware, materials and machinery across the region, which is immediately felt at Hardware and Tools Middle East.

“Demand created by the region readying for global events, such as Dubai Expo 2020 as well as large-scale infrastructure projects such as Al Qiddiya, Red Sea and Neom Future City in Saudi, will keep the construction sector ticking over at a healthy rate.

“The industry is also being driven by regional governments’ push to achieve diversified economies and create the infrastructure to attract inward investment in other areas of the economy.”

The Ventures ONSITE report on the GCC’s Construction market is available to download on the Hardware + Tools Middle East website at www.hardwaretoolsme.com.