Middle East construction sector recovers at a slow pace

Construction ME 9 Dec GDThe growth of the building sector in the Middle East and Africa decreased by 4.5% in 2020 and the sector partly recovered with a growth rate of 1.9% in 2021 and then a predicted rate of 4.1% in 2022, according to Global Data

Economies all over the world have been factually struggling to recover from the severe impact of the spread of Coronavirus. The construction sector in the Middle East was among the most affected by this global crisis.

Recovery expectations

The building sector declined by 4%, according to the recorded annual data in 2020, and experts expected a growth of 3% to 4% in 2021. This is because of the execution of newly adopted building laws that would pave the way to support the building and construction activities in the country.

According to the Middle East and Africa construction industry report, Q1 2021, “The onset of the coronavirus and subsequent decline in the oil prices had a negative impact on the construction sector. Although construction activities were affected, the work continued but with reduced productivity while keeping social distancing norms in mind. However, the sector is expected to recover in 2021 with various upcoming construction projects across the Middle East.”

Adapt to grow

International research institutes predict further development of the building sector in the Middle East and in Africa in the coming years as well. Business Wire noted that the building sector in the Middle East and Africa will witness an annual growth of 7.1% by 2024. The main concern is the delayed delivery schedules due to the spread of Coronavirus. However, the building sector would have to adapt to the new conditions in order to continue working on various projects.

There are some challenges; nevertheless, the sector has to deal with in order to achieve the desired growth. Among the most important problems is the increase of the prices of various building materials. This affects the profit margin of construction companies and results in delays in scheduled deliveries. 

Other challenges include the lack of skillful workers. Due to the spread of Coronavirus in 2020, a large number of construction workers had to leave the Middle East and return to their homelands. These professions include civil engineers, technicians, architects, and construction workers. Several countries in the Middle East started decreasing travel restrictions and a large number of workers are expected to return to their work once again during the coming period.

In order to attract workers and employees in the construction sector, companies have to abide by the regulations of the Occupational Safety and Health Administration, OSHA, and other procedures to guarantee the safety of workers in building sites.

Overcoming challenges

There are also the challenges imposed by the tendency towards achieving sustainability and decreasing emissions. According to the World Green Building Council, the building sector is responsible for 39% of the emissions all over the world. 

They also have to begin considering the construction of buildings that saves energy and resources, and provide a healthy lifestyle for residents. Many initiatives around the world aim to achieve zero carbon emission by 2050. 

 

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