In the latest study...
Residential sector accounts for half of the GCC construction market

Amlak-Agencies
Construction projects valued at $83.41 billion (up 17.43%) were completed and $82.2 billion worth of projects were awarded during the year in the Arabian Gulf countries, according to a recent study.
The same study estimated the total market for contracting, fixtures and interiors in the region at $7.81 billion, up 8% compared to 2012, and to see a further increase of 18% this year.

The study also estimated the total market for construction, fixtures and interiors in the region at $7.81 billion, up 8% compared to 2012.

Construction Projects
A study by Ventures Middle East commissioned by dmg events indicates that construction projects across all construction sectors worth $69.91 billion were completed in the GCC region in 2013.

Residential (43.3%), commercial (18.2%) and education (10%) were the leading construction sectors, in order. 2013 was a very positive year for the building construction market, with $69.91 billion worth of projects completed and $71 billion worth of projects awarded. Buildings and facilities were completed in the hospitality, medical and retail sectors with total values of: $4.6 billion, $2.4 billion and $1.8 billion, respectively.
Saudi Arabia and the UAE top the list
Saudi Arabia and the United Arab Emirates (UAE) led the region in all sectors except education and healthcare, where Qatar came first with $4.6 billion in completed projects in the education sector ($1.01 billion in Saudi Arabia and $714 million in the UAE) and $1.12 billion in completed projects in the healthcare sector ($482 million in Saudi Arabia and $570 million in the UAE).
The interiors contracting and fit-out market was valued at $7.81 billion in 2013, an increase of 8% compared to 2012. Saudi Arabia represented the largest market with a share of 47.4% (valued at $3.7 billion) followed by the UAE and Qatar with $2.39 billion and $953 million, respectively.
The residential sector accounted for almost half of the total market in 2013 with 42.6% (valued at $3.33 billion), followed by the commercial sector with 17.9% valued at $1.40 billion and the hospitality sector with 13.4% valued at $1.05 billion.
Market in 2014
According to the study, 2014 figures are expected to see an increase in the construction and interiors markets: $83.41 billion worth of projects are expected to be completed and $82.8 billion worth of projects awarded over the next 12 months, and the interiors market is also likely to grow by 18% to $9.2 billion by the end of the year.
The healthcare sector is expected to grow by 250% from a value of $2.4 billion recorded in 2013, to a projected value of $8.4 billion. The UAE will be the country where the majority of healthcare buildings and facilities will be completed with a total value of $3.19 billion, five times the value recorded in 2013, followed by Saudi Arabia with $3.09 billion and Qatar with $1.7 billion. Kuwait is also worth highlighting as the value of completed projects will increase from $47 million in 2013 to $317 million in 2014.
Despite the dramatic increase in the healthcare sector, the residential and commercial sectors will continue to lead the building construction market, together accounting for more than half of the market share, which is concentrated in Saudi Arabia, the United Arab Emirates and Qatar.
Interiors
Within this $9.2 billion market, the residential sector will account for 35.9% worth $3.33 billion, followed by hospitality at 19.8% worth $1.82 billion and commercial at 15.7% worth $1.44 billion.
Compared to the figures recorded in 2012, the healthcare sector will see the largest growth with an increase of 2,56% and a value of $672 million. The retail interiors market is expected to see its largest decrease in value from $393 million to $308 million.
Commenting on the results of the study, Frédéric Morel, Director of the Events Group at the International Design & Workspace Expo, said: «Most sectors of the GCC building construction market have recovered from the downturn, and 2013 was a positive year for the residential, commercial and hospitality sectors in particular, with positive signs of growth and enhanced recovery.»
She added: The region's interiors contracting and fit-out sector accounts for between 10 and 20% of the average construction project value and is doing better than those in Europe and Asia. The slowdown in global markets has prompted investors to look to markets that offer enhanced growth prospects in the near term, and they have found their way to the GCC, where the interiors market is promising ample growth for 2014. The 24th edition of the International Design Show and the 13th edition of Workspace will take place at the Dubai World Trade Center from May 19-22, 2014.