Dubai, UAE: The construction industry continued to maintain momentum in 2021, with a strong finish to the year being a highlight, according to JLL’s newly-released MENA Construction Economics and Cost Insight Review.

The report shows there were $156bn worth of projects awarded during 2021 across the MENA region as widespread enhancements to the construction sector and digital transformation continued to drive growth in the region.

The Egypt, KSA and UAE announcements of their planned 2022 government spending is also expected to be a catalyst for growth. The report also identifies new trends over the past two years and a shift in societal behaviours could lead to future development opportunities.

“We believe the pandemic has prompted a change in mindset and envisage clients and developers alike will look for a change in their project processes, which in turn will lead to new or revived strategies to promote project success,” said Gary Tracey, Head of Cost Management-Project & Development Services, JLL MENA.

“We also expect market sentiment will continue to improve as commodity prices stabilize over the course of 2022.”

Key takeaways from the report include:

  • Economics - The continuation of business and leisure activities to pre-pandemic levels will continue to encourage economic growth within the region. Egypt’s headline Purchasing Managers Index (PMI)1 increased to 49.0 in December. The UAE’s PMI for November reached 55.9 - the highest reading since June 2019.
  • Projects - KSA represented the highest value of awarded projects for 2021 with a recorded $41.3bn. The residential sector was consistently the busiest market across Egypt, KSA and UAE. The total infrastructure awards in 2021 for Egypt was $6.9bn, while KSA infrastructure totaled $3bn and $973m for the UAE.
  • Commodities (metals) - Throughout 2020 and 2021 metal prices were susceptible to volatile changes within the market triggering prominent price increases. This was closely linked to global demand and logistic constraints caused by the pandemic. Increasing transportation costs from higher fuel prices also impacted material costs in the region.

For further information, please see attached report.

1 Purchasing Managers Index (PMI) measures the performance of the non-oil private sector. Above 50 represents an expansion in the non-oil private sector, below 50 represents a contraction and 50 represents the base line.

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About JLL

JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $16.6 billion, operations in over 80 countries and a global workforce of more than 92,000 as of June 30, 2021. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle

Incorporated. For further information, visit jll.com.

About JLL MEA

Across the Middle East and Africa (MEA) JLL is a leading player in the real estate and hospitality services markets. The firm has worked in 35 countries across the region and employs over 1050 internationally qualified professionals across its offices in Dubai, Abu Dhabi, Riyadh, Jeddah, Al Khobar, Cairo, Casablanca and Johannesburg www.jll-mena.com.

Media contacts:
May Ong : May.Ong@eu.jll.com
Shilpa Johnson : JLL@fourcommunications.com