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- Dubai 05:25 06:43 12:11 15:09 17:32 18:50
New construction contracts worth $103 billion (Dh378bn) are expected to be awarded this year as compared to $85bn (Dh312bn) in the previous year, an increase of over 21 per cent, according to a new study.
Conducted by Ventures ME and commissioned by dmg events, the report said construction projects across all building sectors worth $67.6bn (Dh248bn) were completed in the GCC in 2014 while projects worth $72bn (Dh264bn) are expected to be complete in 2015, an increase of 6.5 per cent.
The study claimed that in 2014 residential (41.5%), commercial (16.97%) and educational (10.6%) segments represented the highest market shares. Hospitality, medical and retail buildings were also completed with total values of $4.4bn, $3.72bn and $854m respectively.
Frederique Maurell, Group Event Director for Index, said: "2013 was a strong year for the GCC construction market with almost all sectors showing significant growth. For 2014, we've seen continued growth with Saudi Arabia, the UAE and Qatar doing particularly well. Looking ahead to 2015 the forecast for both awarded and completed projects shows further increases again with particularly exciting times ahead for the residential and commercial sectors."
The healthcare sector is expected to grow 91.12 per cent from a value of $3.72bn registered in 2014 to an estimated value of $7.11bn for 2015. Qatar in particular will be the country with the majority of healthcare buildings completed worth a total value of $2.43bn – followed by Saudi Arabia with $2.15bn and the UAE $1.82bn.
Despite the huge increase in the healthcare sector, the building construction market will still be led by the residential and commercial sectors that together will account for over half of the market share concentrated particularly in Saudi Arabia, the UAE and Qatar.
GCC interior contracting and fit-out market
The value of the GCC interior contracting and fit-out market in 2014 was $7.35bn with Saudi Arabia and the UAE showing the highest market share within the industry. Saudi Arabia was the highest ranking market with a 43 per cent share ($3.4bn) followed by the UAE valued at $2.3bn and representing a 31% market share.
For the second year running the residential sector accounted for almost half of the overall 2014 market with a market share of 41.95 per cent ($3bn). The commercial sector followed with a 17.15 per cent share corresponding to a value of $1.26bn and the hospitality sector with 13.51 per cent share and a value of $993m - largely unchanged when compared to 2013.
Out of an overall estimated market value of$7.35bn, the residential sector will account for 41.95 per cent and$3.09bn in value, followed by the commercial sector at 17.15 per cent and $1.26bn of value and the hospitality sector with 13.51 per cent and $99m in value.
When compared to 2014 figures, the healthcare sector will see the biggest growth with a huge 91.6 per cent increase and reaching a value of $569m. The education sector is expected to see the biggest drop in value by -13.72 per cent from $571m to $492m.
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