Saudi Arabia, UAE lead Dh12.8T Mena projects pipeline

Dubai - Construction sector represents biggest segment of activity

Projects worth $3.5 trillion (Dh12.84 trillion) are in the pipeline across the Middle East and North Africa region, according to data released by Meed.
Data showed that construction, which covers private real estate and public buildings, represents the biggest segment of the Mena projects market valued at $2.1 trillion, followed by transport at $931.2 billion and oil and gas sector at about $662 billion.
Saudi Arabia remains the biggest market in the GCC with a $1.2 trillion project pipeline, followed by the UAE with $640 billion and Kuwait with $206 billion. Oman has a pipeline of projects valued at $134 billion while Bahrain has $70 billion.
Some of the most significant projects will be driven by a new generation of clients such as the Renewable Energy Project Development Office or Public Investment Fund, both in Saudi Arabia, or the Kuwait Authority for Private Partnerships, which are seeking private sector partners for strategic projects in tourism, housing, renewable energy, and transport. The return of markets Egypt and Iraq will also drive opportunities.
For the last 10 years, an average of $216 billion projects have been awarded annually, with the GCC accounting for about two-thirds of this volume.
Many of these projects have since been completed and have become key pillars of the socio-economic progress of the region.
"Although the region has been experiencing challenging business conditions, much like the rest of the world, the need for infrastructure and economic diversification is greater than ever. The recovery of oil prices and the expected improvement of the economic landscape across the region next year, projects are expected to move forward beyond the planning stage - this is something everyone is looking forward to. Until then, however, we focus our attention on completed projects which have surpassed engineering and economic challenges to see which ones have become new beacons for project quality in the region," said Mohammad Al Shouli, senior vice-president at Mashreq Bank.
- waheedabbas@khaleejtimes.com