The MENA construction industry gathered momentum in 2021 with enhancements to the sector and digital transformation driving growth, according to a new JLL report. 
 
In its latest report, the real estate and investment management services firm said projects worth $156 billion had been awarded across the region during 2021, following a total of $119 bln in 2020.
 
Egypt, KSA and UAE announcements of their planned 2022 government spending is also expected to be a catalyst for growth during the coming year, JLL said.
 
“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 stabilise over the course of 2022.” 
 
JLL highlighted the continuation of business and leisure activities towards pre-pandemic levels, saying it will continue to encourage economic growth within the region, after purchasing manager’s indexes (PMIs) grew in key markets. 
 
For example, Egypt’s PMI reached 49.0 in December, but the UAE’s reached 55.9 in December, the highest since June 2019, with anything above 50.0 indicating improvement in business conditions. 
 
KSA represented the highest value of awarded projects for 2021 at $41.3bn. 
 
Metal prices were volatile through 2020 and 2021 because of global demand and logistic constraints caused by the pandemic. Rising transportation costs due to higher fuel prices also impacted material costs in the region, the report said. 
 
(Reporting by Imogen Lillywhite; editing by Seban Scaria)
 
imogen.lillywhite@lseg.com