Deloitte has released its annual report “GCC Construction Capabilities 2015: A barometer of the region's economic growth” as part of its outreach to the construction industry, which provides a comprehensive picture of the industry in the Gulf region.
Deloitte has released its annual report.
Infrastructure Projects The report, which is the result of a wide range of data collected through numerous surveys and interviews with key industry experts, states that the GCC will see significant economic progress in 2015 due to the high level of investment in infrastructure projects, with the value of these projects reaching an all-time high of US$172 billion. The report states that the GCC will see significant economic progress in 2015 due to the high level of investment in infrastructure projects, reaching an all-time high of US$172 billion.
The Deloitte report recognizes that one of the key drivers for the diversification of the GCC economies is the creation of new job opportunities for the population, 50% of which are under the age of 25. In the next five years, Saudi Arabia is expected to need nearly 4 million new jobs in a variety of fields. The population of the GCC countries is likely to increase from 35.0 million today to 60.2 million in 2050, which will require these countries to rethink their strategies to provide a high level of education, health, infrastructure and social support services, which will require a 34% increase in electricity generation capacity and 2.2 billion liters of desalination capacity by 2020. GCC countries will need to rethink their strategies to provide a high level of education, health, infrastructure and social support services by 2020.
172 billion dollars
"Despite the drop in oil prices, political instability, and the IMF's forecast of lower growth in the GCC, the value of expected projects reached a remarkable $172 billion for the first time," said Cynthia Corby, partner at Deloitte Middle East in charge of the construction sector."
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Corby added: "The GCC countries have the privilege of having large oil reserves, which gives them the ability to continue spending in order to realize their planned strategies. They are expected to continue to invest in infrastructure and capital projects to implement their economic diversification strategies." Corby added.
projects
The Deloitte report includes statistical analysis and information on different projects for each country, as well as several articles and interviews looking at different trends within the industry.
Saudi projects The Al Muzaini - Eastern Sub-Center project in Riyadh is the largest project in the implementation phase in Saudi Arabia at $15 billion, followed by the $13.3 billion Khuzam Development Project in Jeddah, which is expected to bring economic, social, and cultural developments to southeastern Jeddah. This is in addition to a large number of projects being planned with high budgets, with infrastructure projects (roads and bridges) leading the way in 2015 with $35 billion, followed by healthcare with $19 billion and power generation with $13 billion.
Qatar Projects The Qatar Metro Network project, divided into a first phase of $15 billion and a second phase of $3 billion, is one of the major projects in Qatar, ranking first among the projects under construction and expected to be delivered in 2015. Second in importance is the Qatar Economic Zone, which in its first phase will include high-tech industries, aerospace support industries, and logistics.
