The Civil Engineering Contractor February 2018 | Page 11

WORLD NEWS
Gulf Cooperation Council’s (GCC’s) combined value of the
22 680 active construction projects topped USD2.4-trillion by the
end of 2017.
The urban construction sector has the highest number of projects,
touching 17 912, worth USD1.21-trillion, followed by the utilities
sector with 1 701, the transport sector having 1 423, industrial with
1 289, and 355 oil and gas projects.
However, combined, the value of 1 423 transport projects surged
to USD387.6-billion, followed by oil and gas projects valued at
USD337-billion, utilities worth USD313-billion, and industrial
project value reaching USD178.6-billion.
The GCC region, which includes the six hydrocarbon-rich
countries — Saudi Arabia, UAE, Oman, Kuwait, Bahrain, and
Qatar with a combined GDP of USD1.4-trillion — have
undertaken massive development and construction activities to
diversify their economies.
In 2016, the GCC countries pumped an average of 18.3 million
barrels per day. According to the GCC Secretariat, the Gulf
countries’ non-oil exports reached USD113.1-billion, while oil
exports fetched USD357.8-billion in 2015, with much of these being
invested in large infrastructure, housing, and commercial projects
that will have a far-reaching impact on the region’s economies.
According to the GCC Secretariat, the total budget deficit of
USD152-billion reflects that the governments are spending fast
and more to build the economies. In terms of number of projects,
these represent 85% of all active projects in the MENA region
and 68% in terms of estimated value in US dollar terms. This also
shows that most of the Middle East’s construction and development
activities are concentrated in the Gulf region, as the governments
of the six oil-rich countries are spending their resources in time to
diversify the economy by developing the infrastructure, housing,
and commercial real estate to build strong national economies and
prepare the economies for the post-oil era.
In the third quarter, as many as 269 projects with a combined
estimated value of USD82.85-billion were announced in the GCC.
The notable among them included Al Faisaliya City located in
Makkah, worth USD25-billion; Aljada Residential City located
near Sharjah’s University City, worth USD6.5-billion; and Oman
to India multipurpose pipeline located in Muscat, worth USD5.6-
billion, according to the latest GCC Construction Analytics issued
by BNC Network.
These do not include the USD500-billion new coastal city of
Neom announced by Saudi Arabia, which will change the economic
landscape of the kingdom and which is developing the world’s tallest
tower: the kilometre-high Jeddah Tower.
In October, the number of active projects in the GCC increased by
2% as compared to September 2017, and the total estimated value
of these projects increased by 1%.
A total of 142 active projects with a combined estimated value of
USD10.4-billion moved to construction from other stages during
the month. A total of 670 active projects with a combined estimated
value of USD15.2-billion were completed during the month.