Meed Projects, a subscriber-only service that provides comprehensive project information across the Gulf, has registered a staggering $2 trillion worth of projects on its database.
“The Meed Projects index, which monitors investment within the construction, oil and gas, petrochemicals, power and water and waste sectors across the region, has risen in value by 40 per cent over the past 12 months, despite fears that rising construction costs would lead to significant slowdown in the number of new projects being launched,” a Meed release said.
The UAE remains the biggest projects market in the Gulf, accounting for 37 per cent of the total project value. It has also registered the highest growth, with total project values in the federation rising by 46 per cent over the past 12 months. Kuwait has the highest proportion of unawarded contracts, representing over 90 per cent of all projects planned.
Only a quarter of all projects tracked by Meed Projects are actually construction implying that there is another 3-5 years of further intensive construction activity to come.
There has been a series of major real estate projects announced in recent months, reinforcing the sector’s dominance of the projects market and pushing the overall value beyond $2 trillion. Major new real estate projects include: Sudair Industrial City in Saudi Arabia at $40 billion; Masdar City, Abu Dhabi - $22 billion; Dilmunia mixed use development in Bahrain worth $4.2 billion and Limitless’ Al-Wasl development in Riyadh at $12 billion.
Meed Projects’ current value of investment in the Gulf by sector: construction - $1,207 billion; industry - $70 billion; oil & gas -$430 billion; petrochemicals - $135 billion; power - $134 billion; water & waste - $40 billion
Simon Howard, general manager of Meed, said that despite fears the bubble might burst at any moment, business in the Gulf was still booming.
“The last 12 months have seen huge investment poured into the region, with such developments as Masdar City and Saadiyat Island allowing Abu Dhabi to emerge as a market packed with the potential to one day rival Dubai as the bustling tourism centre of the UAE. Furthermore, such stand out success in the UAE indicates that there is still room for more copious investment in the surrounding GCC countries,” said Howard.
“The $2 trillion worth of projects now registered on the Meed Projects database signifies a momentous landmark in the region’s development.”
Meed Projects is a subscriber-only service that provides comprehensive, up-to-date and accurate project information online.
Meed is internationally recognised as providing essential business intelligence for anyone doing business in, or with, the Middle East and North Africa.
