GCC Construction Sector To Roar By 2020 At $898bn

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A building material company reported that by 2020, spending in the building sector all overGCC Construction Sector To Roar By 2020 At $898bn GCC will hit an estimated an estimated AED3.3tn ($898bn) boom by 2020.
Also, the forecast stated that real estate project account will climb to AED1.89tn ($514bn) of the current developments still across the GCC.
Development has once again found its way to the United Arab Emirates in spite of an earlier shift in construction activity to Saudi Arabia and Qatar in the wake of the financial crisis.
“There are significant projects like the nuclear program in Abu Dhabi and the RTA in Dubai is expanding, which is helping provide access to some developments in residential areas,” Andrew Jeffrey, director, infrastructure & capital investments at Deloitte Middle East said.
Head research of MENA, Craig Plumb listed Mohammed Bin Rashid City, Bluewater Island by Merass holding, and retail extensions at Ibn Battuta and Dragon Mart, the Louvre, Yas mall in Abu Dhabi, as developmental indicators of viable construction activity in the UAE.
Although investors cannot hope to revisit the pre-financial crisis real estate bubble, Plumb feels the market has bloomed into a more mature and sustainable position. The Arab Spring has been one catalyst for change.
The Dubai Expo 2020 and the Doha World Cup 2022 have been expected to enhance construction development dramatically although Plumb feels its “it’s the legacy of the event that’s important.”
In the wake of the Syrian conflict in the Middle East and subsequent possible US intervention, Coline Schep, associate analyst at Control Risks in Dubai, does not feel projects in construction would be stalled.
However Schepe added: “If conflict was to break out involving the US then certain companies would become more cautious, and investor confidence would be impacted.”