Table: Market movement from Q3 2009 to Q4 2009 – Civil Buildings
The GCC building construction industry declined 2.2% during Q4 of 2009 on the budget value of active projects. Despite the slowdown, the Qatar construction market grew by 4.3% on the active budget value during the same period and continues to be the best performing market in the GCC building construction sector.
Q4 witnessed the second highest value of projects completed during 2009 reaching almost $7 billion with bulk of the projects in the UAE. This trend is set to continue during 2010 and will decrease substantially in 2011 as most of the current active projects will then be completed.
There are currently more than 3,200 active building projects worth in excess of $1.3 trillion in the GCC, with the UAE still leading, followed by Saudi Arabia. The rate of project cancellations and projects placed on-hold, was the lowest during the fourth quarter of 2009, indicating that the rate at which projects are being cancelled or placed on hold, is slowing down.
The projected cash flow expenditure for 2010 will recover slightly from 2009, but a significant reduction is forecasted for 2011.
Emil Rademeyer, Director of Proleads Global, said the aim of the insights series is to bring more transparency to the GCC construction market, which in turn will assist business to make informed decisions on factual information, rather than simply relying on anecdotal evidence.
“It is vital to know how fast and by how much the industry is changing, not just for the industry and its suppliers but also for planners, governments and financial institutions,”
“From our cash flow projections for the industry, we see the GCC construction market stabile at current levels and showing a down turn in 2011 unless a large number of projects go into construction, which at the moment seems highly unlikely.”
* Insights GCC: An Investigation into the Current and Future State of the Civil Building Construction Industry, is published by Proleads Global, price US$100. In addition to Insights GCC Proleads also published Insights UAE, Insights Saudi Arabia, Insights Qatar, Insights Bahrain, Insights Oman, Insights Kuwait and Insights Hydrocarbons, all priced at $100. For further information please visit www.projectsandleads.com/
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Megha Merani
Proleads Global
Dubai, United Arab Emirates
Mobile: +9715 0658 5843
E-mail: megha@proleadsglobal.com
Web site: www.proleadsglobal.com
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