twitteryou tubefacebookacp

Middle East countries showed a strong construction growth in H1 2023, report says

The UAE, Saudi Arabia, and Egypt are witnessing the highest amount of construction in the region. (Image source: Pexels)

US$3 trillion worth of project pipelines were awarded to MENA countries in the first half of 2023, according to JLL Real Estate

This is part of insights revealed by JLL on the construction industry from the company's Construction Market Intelligence report 2023. 

During this period, projects totalling US$101bn were awarded to the MENA region, with 67% of the total value jointly going to Saudi Arabia (US$44bn) and the UAE (US$23bn). 

Egypt's construction market is expected to grow at an average annual growth rate (AAGR) of 9% between 2024 and 2027, driven by  transportation, renewable, and residential sectors, according to GlobalData. The Saudi Vision 2030 is expected to serve as the driving force behind continuous efforts at economic diversification, which should propel its construction market size to grow by 4% AAGR between 2024 and 2027. 

With more money going into the real estate and infrastructure sectors, the construction market in the UAE is predicted to expand by more than 3% annual growth rate (AAGR) between 2024 and 2027. 

The projected average oil price for 2023 is US$85 per barrel, which is US$15 less than the price for 2022. This could result in lower fuel and production costs, opening the door to potential cost savings in transportation and production.