Business | Construction
Construction grows $4b a week
Windfall gains from high oil prices are fuelling the Middle East's construction activities, largely led by government projects, that are growing by Dh14.68 billion ($4 billion) a week, according to Meed Projects, an online business tracker.
- By Saifur Rahman, Staff Reporter
- Published: 00:00 October 20, 2005
Windfall gains from high oil prices are fuelling the Middle East's construction activities, largely led by government projects, that are growing by Dh14.68 billion ($4 billion) a week, according to Meed Projects, an online business tracker.
The value of 1,400 ongoing projects in the GCC, Iraq and Iran will touch Dh2.57 trillion ($700 billion) by the end of this week.
The UAE, with a population of 4.32 million, accounts for 31.57 per cent of the projects by value, worth Dh812.57 billion ($221.41 billion).
Saudi Arabia with a population of 26.4 million accounts for 20.8 per cent, worth Dh536.33 billion ($146.14 billion).
According to Meed data, per capita spending in projects in the UAE, currently at Dh188,097.69 ($51,252.77), is one of the highest in the world and definitely the highest in the region.
Qatar ranks third among the eight countries with projects valued at $102.6 billion, followed by Iran with $87.21 billion.
Both energy-producing countries are investing heavily in the hydrocarbon industry's development. They are followed by Kuwait with an investment of $69.51 billion, Oman $28.21 billion, Bahrain $22.49 billion and Iraq with $19.91 billion in projects under way.
However, on the construction side, in terms of value the UAE accounts for nearly 60 per cent of the projects underway in these eight countries.
The total value of the construction projects in the GCC, Iran and Iraq reached $293.55 billion this week, of which $176.04 billion is underway in the UAE, according to Meed statistics.
The other 40 per cent, or $117.5 billion, comprises projects shared by the seven countries.
The UAE's construction activities are largely concentrated in Dubai, due to strong demand generated by rapid expansion of the real estate and tourism sectors.
Dubai's growth in non-oil activities is fuelled by the government's vision in aggressively promoting it as a preferred destination for business, trade, tourism and retail activities.
However, government entities such as Dubai Municipality, Dubai Properties, Nakheel, Department of Civil Aviation, Ports, Customs and Free Zone Corporation, Dubai Electricity and Water Authority (Dewa) and Emaar Properties are leading all the
development activities with the private sector involved to a much lesser extent.
Among the leading government organisations, Nakheel has the largest project portfolio with Dh110 billion ($30 billion) currently under development, including the Palm Island trilogy, the World, Dubai Waterfront, Jumeirah Lakes, Jumeirah Villas, Jumeirah Golf Estates and International City, among others.
This is followed by the Dh45 billion airport development undertaken by the Department of Civil Aviation. The Jebel Ali Airport City is expected to change the entire landscape of Dubai's south.
These ventures are closely followed by Emaar Properties' portfolio of development projects, currently valued at $8.30 billion, in addition to $3.3 billion in overseas investments under Emaar Middle East and much more under Emaar International.
The Dubai government's investment arm, Dubai Holding could easily outshine many others with the upcoming projects, currently estimated at $7.57 billion.
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