43 Percent Middle East Construction Projects Are On Hold
Source: http://www.thenational.ae
#middleeast #construction #economy
Nearly 43 percent of all construction projects in the Arabian Gulf region are on hold as the fallout from the global economic downturn continues to bite.
New figures from Middle East property intelligence website BNC Network show that of the US$ 1.68 trillion of construction projects in the region, US $ 735 billion worth of them are on hold, reported The National. Such projects make up a greater proportion of the schemes in the region than those at any other stage of construction, the report said.
Researchers found a total of US$ 490 billion of schemes in the region were currently under construction. Projects worth US$ 81 billion were in the tendering phase, while projects worth US$ 124,6 billion were in the design phase. In addition, US$ 264 billion worth of projects was in the initial planning and concept phase.
The UAE accounted for the Gulf's largest construction project market - with projects totaling US$ 681 billion by value. Of these, 62 percent or US$ 422 billion were on hold. The total value of building projects in Saudi Arabia, the second-largest Gulf construction market, was more than US$ 461 billion. Of these 22.4 percent or US$ 103,2 billion were on hold. This was followed by Kuwait, where the total value of projects reached US$ 195 billion, including 31.4 percent or US$ 61,2 billion worth of projects currently on hold or cancelled. Qatar, which has won the bid to host the FIFA World Cup in 2022, ranks fourth in the region with a total value of projects exceeding US$ 170,2 billion. Of these, 40.3 percent or US$ 68, 6 billion worth are on hold.
But despite the economic slowdown caused by the global financial crisis in 2008-09, the Gulf region still remains one of the largest construction markets in the world after China, where several large-scale projects are still on track, according to Ben D'Souza, the chief operating officer of BNC Network.
But another figures published by the building consultancy EC Harris show the Middle East is still the most straightforward emerging market for global retailers to set up shop. EC Harris ranked Saudi Arabia, Qatar and the UAE the eighth, 11th and 15th easiest markets internationally for international retailers to expand into from a property perspective - far higher than both China and India. The company measured the world's top 40 countries for developing and leasing retail property by measuring the quality of their transport infrastructure, capability of their construction supply chain and their supporting legal framework.
According to the property consultancy Jones Lang LaSalle, the amount of retail space in Abu Dhabi is set to increase by 41 percent over the next two years, from 1.68 million square meters in the second quarter of this year to 2.37 million square meters as a series of new shopping centers - including Aldar's 235,000 square meters Yas Island mega mall - hit the market.
New figures from Middle East property intelligence website BNC Network show that of the US$ 1.68 trillion of construction projects in the region, US $ 735 billion worth of them are on hold, reported The National. Such projects make up a greater proportion of the schemes in the region than those at any other stage of construction, the report said.
Researchers found a total of US$ 490 billion of schemes in the region were currently under construction. Projects worth US$ 81 billion were in the tendering phase, while projects worth US$ 124,6 billion were in the design phase. In addition, US$ 264 billion worth of projects was in the initial planning and concept phase.
The UAE accounted for the Gulf's largest construction project market - with projects totaling US$ 681 billion by value. Of these, 62 percent or US$ 422 billion were on hold. The total value of building projects in Saudi Arabia, the second-largest Gulf construction market, was more than US$ 461 billion. Of these 22.4 percent or US$ 103,2 billion were on hold. This was followed by Kuwait, where the total value of projects reached US$ 195 billion, including 31.4 percent or US$ 61,2 billion worth of projects currently on hold or cancelled. Qatar, which has won the bid to host the FIFA World Cup in 2022, ranks fourth in the region with a total value of projects exceeding US$ 170,2 billion. Of these, 40.3 percent or US$ 68, 6 billion worth are on hold.
But despite the economic slowdown caused by the global financial crisis in 2008-09, the Gulf region still remains one of the largest construction markets in the world after China, where several large-scale projects are still on track, according to Ben D'Souza, the chief operating officer of BNC Network.
But another figures published by the building consultancy EC Harris show the Middle East is still the most straightforward emerging market for global retailers to set up shop. EC Harris ranked Saudi Arabia, Qatar and the UAE the eighth, 11th and 15th easiest markets internationally for international retailers to expand into from a property perspective - far higher than both China and India. The company measured the world's top 40 countries for developing and leasing retail property by measuring the quality of their transport infrastructure, capability of their construction supply chain and their supporting legal framework.
According to the property consultancy Jones Lang LaSalle, the amount of retail space in Abu Dhabi is set to increase by 41 percent over the next two years, from 1.68 million square meters in the second quarter of this year to 2.37 million square meters as a series of new shopping centers - including Aldar's 235,000 square meters Yas Island mega mall - hit the market.
