The GCC construction market is estimated at US$2.4 trillion, with more than 23,000 active projects at the end of the Q1 2020, according to the 17th edition of the BNC projects journal Code Blue
The BNC projects journal stated that the GCC construction market shifted focus towards driving ongoing projects to completion in Q1 2020 and was cautious in new announcements as well as contract awards. Around US$48.4bn worth of projects were completed in the Q1 2020, driven by the UAE and Saudi Arabia, with 38 per cent and 27 per cent contribution respectively.
?As COVID infects the global economy, no industry or business is truly immune. The obvious fallout in terms of delays due to the disruption to work on sites, material supply disruptions due to closed factories and shipping delays are symptoms of an economic disease that can and must be addressed,? said Avin Gidwani, CEO of Industry Networks.
New projects worth US$21bn were announced in the Q1 2020 with the largest contribution being made by the UAE with 59 per cent market share.
?The economic malady affecting construction is clearly contagious but unlike the coronavirus, it spreads only when businesses break connections in the flow of commerce by breaking their commitments to pay,? stated Avin Gidwani.
The total value of contracts awarded in the Q1 2020 was US$23.5bn, while US$3.1bn worth of contracts were awarded in March. The energy sector registered US$12.9bn worth of project awards in the Q1 driven by the UAE and Saudi Arabia with 42 per cent and 40 per cent contribution respectively.
