•Residential (US$28bn), Commercial (US$11.46bn) and Education (US$7.13bn)were the leading sectors
•Initial market indicators suggest sustained growth in 2015 with an estimated 21% increase in construction projects awarded across the GCC
•GCC interiors and fit-out market to remain buoyant with a forecasted 9% increase in value in 2015
Dubai - dmg events today announced the results of a commissioned study conducted by Ventures ME which revealed that construction projects across all building sectors worth US$67.6bn were completed in the GCC in 2014. The research also lookedinto 2015 and estimates projects for US$72bn (+6.5%) to be completed and US$103bn (+21.2%) to be awarded across the year. This is the fourth consecutive year that dmg events, the company behind INDEX - the leading MENA Design exhibition - and workspace at INDEX, has invested in the study, contributing to the global industry with useful regional market insights.
Overview of 2014GCC Building Construction Projects
2014 was another strong year for the construction market with residential (41.5%), commercial (16.97%) and educational (10.6%) segments representing the highest market shares. US$67.56bn worth of projects were completed with a further US$85bn worth of projectsawarded. Hospitality, medical and retail buildings were also completed - with total values of US$4.4bn, US$3.72bn and US$854mn respectively. The top markets across all sectors bar retail were KSA and the UAE, with Qatar ranking top with completed retail projects worth US$362mn.
Overview of 2014GCC Interior Contracting and Fit-out Market
The value of the GCC Interior Contracting and Fit-out Market in 2014 was US$7.35bn - with KSA and the UAE showing the highest market share within the industry. KSA was the highest ranking market with a 43 per cent share (US$3.4bn) followed by the UAE valued at US$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 (US$3.09bn). The commercial sector followed with a 17.15 per cent share corresponding to a value of US$1.26bnand the hospitality sector with 13.51 per cent share and a value of US$993mn - largely unchanged when compared to 2013.
2015 Forecast
Looking ahead to 2015 projects, the Ventures ME Report highlighted that figures across both the building construction and interiors markets are both set to increase further.
US$72bn worth of completed projects and US$103bn worth of awarded projects are forecasted over the next 12 months; the interiors market is also likely to grow by 9 per cent.
Building Construction Market
The Healthcare Sector is expected to grow by 91.12 per cent from a value of US$3.72bn registered in 2014, to an estimated value of US$7.11bn for 2015. Qatar in particular will be the country with the majority of healthcare buildings completed worth a total value of US$2.43bn -followed by KSA with US$2.15bn and the UAE US$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 KSA, the UAE and Qatar.
Interior Fit-out Market
Out of an overall estimated market value ofUS$7.35bn, the Residential Sector will account for 41.95 per cent andUS$3.09bn in value, followed by the Commercial Sector at 17.15 per cent and US$1.26bn of value and the HospitalitySectorwith 13.51 per cent and US$99mn 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 US$569m. The Education Sector is expected to see the biggest drop in value by -13.72 per cent from US$571m to US$492m.
Commenting on the figures released by Ventures ME, Frederique Maurell, Group Event Director for INDEX and workspace at INDEX, said: "2013 was a strong year for the GCC Building Construction market with almost all sectors showing significant growth. For 2014 we've seen continued growth with KSA, 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 full GCC Building Construction and Interiors Update from INDEX and Ventures ME, valued at $2,500 can be downloaded for free via the INDEX website (http://www.indexexhibition.com/exhibit/industry-reports/)
The 25th edition of INDEX International Design Exhibition and the 14th edition of workspace at INDEX will take place at the Dubai World Trade Centre on 18-21 May 2015.
For further information visit www.indexexhibition.com/ www.workspace-index.com
-Ends-
About INDEX
The INDEX International Design Exhibition is the largest event for the architect and design industry in the Middle East. It attracts more than 700 exhibitors from 50countries, taking place at the Dubai World Trade Centre.
Celebrating its 25th anniversary year, 18-21 May 2015 at the Dubai World Trade Centre, INDEX providesan unrivalled business and networking opportunity for buyers and sellers of residential interiors products and services from around the world to source an astounding array of the very latest design innovations, trends and techniques.
More than just an exhibition, the event provides attendees with unrivalled access to information, intelligence, contacts and hands on experience. Experts from around the world engage in the industry's most topical discussions, finding design solutions, facing challenges and seizing opportunities. The show is the gateway to the Middle East and North Africa (MENA) providing both exhibitors and visitors with the opportunity to conduct serious business with like-minded professionals.
About workspace at INDEX
Formerly The Office Exhibition, workspace at INDEX is the largest commercial interiors fit-out and design exhibition in the Middle East. Co-located with the INDEX International Design Exhibition, workspace at INDEX is the premium showcase for high-end products and services which combine to create outstanding working environments. Organised by dmg events, the show attracts thousands of top tier architectural and interior design firms and end-users from the Middle East and beyond.
The 14thannual edition of workspace at INDEX, taking place 18-21 May 2015at the Dubai World Trade Centre, will include a wider range of products and services to reflect the ever expanding market and different working environments across the general office/commercial, healthcare, and educational design, fit out, and upgrade sectors.
About dmg events
An international exhibition and publishing company, dmg events produces market-leading exhibitions and conferences for the global energy, construction, digital marketing, hospitality and interior industries, with events in the Middle East, North America, Europe and Asia.
As a leading supplier of face-to-face business information, with a customer-centric focus that localizes operations and relationships, our objectives are to keep businesses informed and connect them with relevant consumers to create vibrant marketplaces across multiple event platforms and communities.
Founded in 1989, dmg events has operated in the Middle East since 1995 and owns many leading brands such as The Big 5 construction events, ADIPEC the oil & gas exhibition and conference, INDEX the interior design exhibition and the Hotel Show.
For more information visit www.dmgeventsme.com
dmg events is a wholly-owned subsidiary of the Daily Mail and General Trust plc (DMGT, www.dmgt.co.uk), one of the largest media companies in the United Kingdom.
© Press Release 2015
