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As many as 292 tenders with an estimated value of Dh34.87 billion were awarded in the Q2, 2017, while the total value of urban construction project awards to reach Dh186.80 billion in 2017, according to BNC Network
News Announcements
1. The total estimated value of urban construction contracts to reach Dh186.8 billion (US$50.9 billion) by the end of 2017
2. Around 801 construction projects worth US$32 billion are being tendered across the GCC in 2017
3. Around 292 construction projects worth Dh34.87 billion were awarded in the second quarter of 2017
4. Urban construction contracts likely to grow 29 per cent in 2018
5. BNC Network tracks 25,324 live projects worth Dh26.4 trillion across the GCC
Dubai, UAE - As many as 801 construction projects with a combined estimated value of US$32 billion (Dh117.44 billion) are currently in tendering state in the GCC's urban construction sector which will serve as a strong pipeline of projects to be awarded in the near future, according to BNC Network, the largest and most comprehensive project research and intelligence provider in the Middle East and North Africa (MENA) region.
By the end of the year 2017, the combined total value of urban construction contracts is estimated to reach US$50.9 billion (Dh186.8 billion). While this is lower than the peaks seen in prior years, the volume of construction contracts is still tremendous, making Dubai one of the most active construction markets in the region.
BNC forecasting model suggests that there would be an increase of 29 per cent in the total value of contract awards to US$65.6 billion in the urban construction sector in the GCC in 2018 followed by another 1 per cent growth to reach US$66 billion in 2019.
The latest BNC Intelligence report shows 292 contracts with a combined estimated value of US$9.5 billion (Dh34.87 billion) were awarded in the second quarter of 2017, within the GCC's urban construction sector that includes commercial and residential buildings, hospitality, healthcare, retail, education, religious buildings, leisure and recreation and mega urban developments.
Some major contract awards in the second quarter of 2017 includes Deira Islands Mall project in Deira Island, Dubai, City Centre - Al Zahia in Sharjah, Yas Acres (Phase 1) in Yas Island, Abu Dhabi and Danat Al Lawzi in Bahrain.
The urban construction contracts constitute 80 per cent of the contracts awarded for all sectors in GCC and in dollar terms this translates to 49 per cent of the total contracts awarded.
“Events like Dubai Expo 2020 along with stabilisation of the oil price and the drive of the various GCC countries to achieve economic diversification and increase in the living standards will play a vital role in the construction industry contract awards,” Avin Gidwani, Chief Executive Officer of BNC Network, says.
“As the economic growth is expected to pick up pace next year, we expect an increased construction activity across the board in 2018. New project announcements by major developers that have taken place from 2016 till now – will go into tender next year and trigger increased construction activities across the GCC.”
BNC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding $7.2 trillion (Dh26.4 trillion). It publishes more than 250 project updates that are distributed amongst 73,000 executives and professionals every day.
About BNC
BNC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding $7.2 trillion (Dh26.4 trillion). It publishes more than 250 project updates that are distributed amongst 73,000 executives and professionals every day.
It is used by thousands of business leaders and construction industry professionals around the world to track developments, gain insight on projects and do business in the construction industry. BNC covers construction projects, across all sectors including urban construction, mega developments, transportation, utilities, industrial developments and oil and gas and publishes over 2,000 construction analytics annually based on extensive research and analysis.
Contact:
Aritra Dasgupta
G1-03, 61st Street SAIF Zone, Sharjah, UAE
Tel : +97155 5482203
Email : adasgupta@bncnetwork.net
© Press Release 2017
