Due to the pandemic, construction activities in GCC (Gulf Cooperation Council) and Middle East countries slowed down in August 2020. After a year of fiscal distress, finally, the economy in GCC and Middle Eastern countries are expected to bounce back to a cumulative growth of 2.2% by the end of 2021. World Bank Gulf Economic Update (GEU) has recently projected this growth in their title called “COVID-19 Pandemic and the Road to Diversification”.
This regional recovery is buoyed by the global economic revival, projected at the rate of 5.6%. The sharp surge in oil demand and prices have also played a critical role in getting GCC and Middle East countries back on the path to economic growth. Construction in general and urban construction, in particular, is another sector that is playing a critical role in recuperating the economic growth of the region.
In August 2020, the GCC construction industry was accounted for $2.4 trillion market capitalisation with over 21,000 active projects. After that, we saw a massive decline in the GCC construction market and the region’s overall economy. The falling crude oil prices in mid-2021 was another root cause of the collective economic failure of the GCC countries. But finally, we witnessed a post-pandemic boom in the GCC and Middle East countries that fast-tracked economic recovery in that region.
Avin Gidwani, the CEO of Industry Networks, has recently said that the GCC economy was beaten and bruised for two quarters, but fortunately, it was not knocked out entirely. It has fought back in the third quarter, which is known as the “return of the economy on wobbly feet”. Authorities have firmly handled the second wave of COVID, and therefore the GCC economy was not heavily affected due to it.
Construction projects worth $19.6 billion were completed during the recovery period. Saudi Arabia is the leading contributor to this growth, holding a 35% share of the new projects. The United Arab Emirates is not far behind, as they have achieved the glory of completing Phase 1 of the incredible Barakah Nuclear Power Plant.
The key contributor to GCC and Middle East countries’ economic growth is unquestionably urban construction. It has seized the spotlight in August by contributing more than 90% of projects of the new announcements. The urban development analysis report also states that construction in the metropolitan area accounts for 38% of the total project completion and 49% of the entire contracts awarded in the GCC regions.
So overall, we can see that urban construction development has set the GCC economy for a post-pandemic boom. With so many upcoming and developing projects, there are many opportunities for every player operating in the regional construction market. PROJECT INTEL can help you leverage these opportunities and skyrocket your business growth. Using our software, you will get a clear outlook of 27,000+ active projects currently taking place in the GCC and Middle East countries. It will help you conduct urban construction analysis, make informed sales pitches, extract contact details of the key decision-makers, etc.
PROJECT INTEL can give you the advantage you need to dominate the market. Get in touch with us to request a free demo. Let us help you to stay ahead of the competition.