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Economic priorities changing in the GCC
Construction projects worth &128.46 billion to completed by 2014, reveals Ventures ME report
May 18, 2014 7:18 by kippreport
Priorities of GCC economies are shifting towards medical, residential and hospitality sectors, as most of the construction projects that are set to complete by the end of 2014 are from among the above-mentioned segments.
A latest study by Ventures ME, released by dmg events, reveals that construction projects across all building sectors worth $128.46 billion are expected to be completed by the end of 2014, thereby hitting a 92.06 per cent increase, when compared with 2013 ($66.89bn). The expected expenditure on interiors and fit-outs is $9.57bn, 29.63 per cent more than what was spent in 2013.
The research analyses both the building construction and the fit-out and interiors markets focusing on six main sectors – residential, commercial, hospitality, retail, educational, and medical – in each of the GCC countries.
Out of a total market worth $128.46bn, the medical, residential and hospitality sectors will count for more than half of the market, with shares of 24.43 per cent, 23.34 per cent and 22.64 per cent, respectively. The other three sectors leading the way will be commercial (12.51 per cent), educational (5.86 per cent) and retail (1.09 per cent) sectors.
When compared with previous year, the hospitality and medical sectors will register the biggest growth; the value of completed hospitality building projects is forecasted to jump from $3.68bn to $29.08bn (+690.03 per cent), whereas the value of completed buildings for medical use will go up by 725.19 per cent to a value of $31.38bn ($3.80bn in 2013).
Saudi Arabia will be the country where most of the completed buildings will be located, particularly in the residential ($34.39bn), hospitality ($3.85bn), commercial ($7.97bn) and educational ($4.38bn) sectors. Qatar will register retail projects to be completed for a total value of $522m, moving up in the country’s ranking from fifth position in 2013 to number one.
The UAE will be at the high end of the rank when looking at the healthcare sector; out of a total market forecasted to value $31.38bn, the UAE will account for $3.13bn – a remarkable difference, when compared with the value of completed projects in 2013 ($ 227m).