Wednesday, Feb 11, 2009
Gulf News
Dubai: Many contractors and developers in the UAE are looking to Saudi Arabia as the new land of opportunity.
Developer Damac yesterday appointed Kasktas Arabia Ltd Construction to carry out enabling works at its Al Jawharah residential project, launched in 2007, on the Red Sea coast.
Damac was one of the first developers to enter the real estate market in Saudi Arabia.
"The opportunities offered in the kingdom are fuelled by strong demographic and economic drivers. Considering the unprecedented demand for real estate projects in the market, coupled with the determination by the government to diversify the economy and promote investment leads are some of the important factors that are attracting investors," Peter Riddoch, chief executive of Damac Properties, told Gulf News yesterday.
With construction prices falling in recent weeks, it has provided developers and contractors with some much-needed leeway.
"With regard to the reduced construction prices, it is a relief to the industry and the developers. These savings will ultimately assist developers in bringing buildings to market within budget and timeframes," Riddoch added.
Work to secure the site and clear the land is expected to begin in three weeks. Once enabling works have been completed, tenders to appoint the main contractor for construction will be discussed.
"This contract comes at a perfect time for us and gives us the opportunity to contribute positively and fruitfully to the developments of the Jeddah skyline," Suat Yildirim, general manager of Kasktas Arabia Ltd, said.
Damac also announced the handover of their 40-storey Lakeview tower in Jumeirah Lake Towers - positive news in an industry battling with job cuts and delays.
The UAE's largest contractor, Arabtec, whose order book is valued at Dh30 billion, is also looking to Saudi Arabia and Qatar for opportunities as the construction sector here is increasingly squeezed by job cuts in the industry and postponements.
Many Gulf contractors have very large order books due to the massive growth last year and have a backlog of projects keeping them ticking over. Saudi Arabia has been less affected, a fact that is reflected in its real estate figures.
The kingdom's real estate sector is set to continue growing at an average rate of between five and seven per cent a year until 2012.
Gulf News 2009. All rights reserved.
