New construction contractor awards in the Gulf Cooperation Council (GCC) are estimated to be worth US$138 billion in 2019, as the UAE and Saudi lead the way with a full list of projects coming online in the building, infrastructure, and energy sectors.
According to a report by projects intelligence platform Ventures ONSITE, 64 percent of GCC construction contractor awards in 2019 will bebased in the UAE and Saudi, with the two countries contributingUS$48.3 billion and US$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.
In the UAE, buildings such as residential, commercial, airports, sports facilities, hotels and recreational facilities, healthcare, and education, hold the lion’s share of new contractor awards in 2019, valued at US$29.9 billion. This is followed by infrastructure (US$5.1 billion), and energy (US$13.2 billion).
Major UAE projects to be awarded this year include the US$5.2 billion Stage 2 of Etihad Rail, Gasoline and Aromatics Project (US$3.2 billion), the Dubai Creek Harbour – The Tower (US$1.5 billion), and Seven City JLT (US$354 million).
Buildings too comprise the highest value of new construction projects in Saudi this year according to Ventures ONSITE, valuing US$18.6 billion, compared to US$11.3 billion in 2018, a 64 percent increase.
Ventures ONSITE’s report was prepared exclusively ahead of the Hardware + Tools Middle East 2019 trade fair, which takes place next month from 10-12 June at the Dubai International Convention and Exhibition Centre.
The three-day event is the Middle East’s only dedicated exhibition for tools, hardware, materials, equipment and machinery, and is expected to feature 115 exhibitors showcasing 180-plus brands targeting the region’s revived construction sector.
“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 + Tools Middle East,” said Show Director Dishan Isaac.
“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,” added Isaac.
Now in its 20th edition, Hardware + Tools Middle East is organised by Messe Frankfurt Middle East, and is co-located with Automechanika Dubai, the region’s largest international trade fair for the auto aftermarket and services industry.
New features this year include the two-day Additive Manufacturing Middle East 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.
The Middle East’s Best Welder competition is another new feature, and is the first of its kind in the region, inviting technical professionals in steel fabrication and welding to three days of intense competition held in partnership with the Middle East Industrial Training Institute (MEITI).
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.
Background information on Messe Frankfurt
Messe Frankfurt is the world’s largest trade fair, congress and event organiser with its own exhibition grounds. With more than 2,500* employees at 30 locations, the company generates annual sales of around €715* million. Thanks to its far-reaching ties with the relevant sectors and to its international sales network, the Group looks after the business interests of its customers effectively. A comprehensive range of services – both onsite and online – ensures that customers worldwide enjoy consistently high quality and flexibility when planning, organising and running their events. The wide range of services includes renting exhibition grounds, trade fair construction and marketing, personnel and food services. With its headquarters in Frankfurt am Main, the company is owned by the City of Frankfurt (60 percent) and the State of Hesse (40 percent). For more information, please visit our website at: www.messefrankfurt.com
*preliminary figures 2018
About Messe Frankfurt Middle East GmbH
Messe Frankfurt Middle East’s portfolio of 16 exhibitions includes Automechanika Dubai, Automechanika Jeddah, Automechanika Riyadh, Beautyworld Middle East, Beautyworld Saudi Arabia, Hardware + Tools Middle East, Intersec, Intersec Saudi Arabia, Interior Lifestyle Middle East, Light Middle East, Materials Handling Middle East, Materials Handling Saudi Arabia, Middle East Cleaning Technology Week, Paperworld Middle East, Prolight + Sound Middle East, SPS Automation Middle East, The subsidiary also organises a series of conferences and seminars including the Worker Health Protection Conference, Think Light, and the International Conference on Future Mobility. In 2018, Messe Frankfurt Middle East exhibitions combined featured 6,246 exhibitors from 60 countries, and attracted 140,685 visitors from 135 countries. For more information, please visit our website at www.messefrankfurtme.com