GCC construction projects to further increase in 2015

The results of a commissioned study conducted Ventures ME revealed that construction projects across all building sectors worth US$67.6 billion were completed in the GCC in 2014. The research also looked into 2015 and estimates projects for US$72 billion (+6.5%) to be completed and US$103 billion (+21.2%) to be awarded across the year. This is the fourth consecutive year that dmg events, the company behind INDEX - the leading MENA Design exhibition - and workspace at INDEX, has invested in the study, contributing to the global industry with useful regional market insights.

 

Building construction projects

Year 2014 was another strong one for the construction market with residential (41.5%), commercial (16.97%) and educational (10.6%) segments representing the highest market shares. With US$67.56 billion worth of projects were completed with a further US$85 billion worth of projects awarded. Hospitality, medical and retail buildings were also completed - with total values of US$4.4 billion, US$3.72 billion and US$854 million, respectively. The top markets across all sectors bar retail were KSA and the UAE, with Qatar ranking top with completed retail projects worth US$362 million.

 

Interior contracting and fit-out market

The value of the GCC Interior Contracting and Fit-out Market in 2014 was US$7.35 billion - with KSA and the UAE howing the highest market share within the industry. KSA was the highest ranking market with a 43 percent share (US$3.4 billion) followed by the UAE valued at US$2.3 billion and representing a 31% market share. For the second year running the residential sector accounted for almost half of the overall 2014 market with a market share of 41.95 percent (US$3.09 billion).

 

The commercial sector followed with a 17.15 percent share corresponding to a value of US$1.26 billion and the hospitality sector with 13.51 percent share and a value of US$993 million - largely unchanged when compared to 2013. 2015 Forecast Looking ahead to 2015 projects, the Ventures ME report highlighted that figures across both the building construction and interiors markets are both set to increase further. About US$72 billion worth of completed projects and US$103 billion worth of awarded projects are forecasted over the next 12 months; the interiors market is also likely to grow by 9 percent. 

 

Building construction market 

The Healthcare Sector is expected to grow by 91.12 percent from a value of US$3.72 billion registered in 2014, to an estimated value of US$7.11 billion for 2015. Qatar in particular will be the country with the majority of healthcare buildings completed worth a total value of US$2.43 billion -followed by KSA with US$2.15 billion and the UAE US$1.82 billion. Despite the huge increase in the Healthcare Sector, the building construction market will still be led by the residential and commercial sectors that together will account for over half of the market share concentrated particularly in KSA, the UAE, and Qatar.

 

Interior Fit-out Market 

Out of an overall estimated market value ofUS$7.35bn, the Residential Sector will account for 41.95 per cent and US$3.09 billion in value, followed by the Commercial Sector at 17.15 percent and US$1.26 billion of value and the Hospitality Sector with 13.51 percent and US$99 million in value. When compared to 2014 figures, the Healthcare Sector will see the biggest growth with a huge 91.6 percent increase and reaching a value of US$569 million. The Education Sector is expected to see the biggest drop in value by -13.72 percent from US$571 million to US$492 million. 

 

Commenting on the figures released by Ventures ME , Frederique Maurell, Group Event Director for INDEX and workspace at INDEX, said, "2013 was a strong year for the GCC Building Construction market with almost all sectors showing significant growth. For 2014 we've seen continued growth with KSA, the UAE, and Qatar doing particularly well. Looking ahead to 2015 the forecast for both awarded and completed projects shows further increases again with particularly exciting times ahead for the Residential and Commercial Sectors."