The Kingdom's construction sector is expected to experience a one per cent growth in the current fiscal notwithstanding the impact of the global economic depression on the Gulf Cooperation Council property markets, including Bahrain.
In contrast, the construction sector across the major markets of United Arab Emirates and Saudi was likely to experience a slump of seven per cent each in terms of main construction contracts awarded during the year.
The year 2010 was also likely to witness negative growth rates for the sector amounting to nearly four per cent across the GCC region, according to 'Research and Markets: GCC Construction Industry - Facts and Figures Update to July 2010'.
A significant proportion of 39 per cent of the total project value was put on hold in United Arab Emirates while the proportionate figure for Saudi Arabia was put at three per cent.
Growth in construction activities across the comparatively smaller countries of Qatar, Kuwait and Bahrain was expected to witness steady growth with Qatar likely to hit a record growth of 48 per cent increase over 2009 in terms of contracts awarded albeit on a smaller base compared to that of United Arab Emirates.
Similar growth patterns were seen in Kuwait where construction activity was likely to experience a decent growth of three per cent.
"Projects awarded to numerous contractors in the construction sector comprising developments in infrastructure, energy and building sectors had witnessed a steady growth until mid 2008 whilst 2009 and 2010 had borne the brunt of the cautious approach due to the global economic depression," the report said.
Within the GCC construction sector, almost 67 per cent of the total value of projects was under the buildings classification, including buildings as well as industrial projects, the proportionate percentage for energy and infrastructure remained at 19 per cent and 14 per cent respectively across all countries in GCC.
"In its efforts to build the whole empire on the back of robust growth in the oil sector, the GCC region since the late 1990s and early 2000, consistently and progressively initiated numerous projects to move away from a predominantly oil based economy to a balanced development across several regions with real estate and construction activities ranking at the top of its priorities."
"A positive growth for 2010 is still achievable if there are no further delays in the projects under final design stage and tender stage progress to contractor finalisation before the end of the year. However, the chances are slim."
By K.V.S. Madhav
© Bahrain Tribune 2010
