Government Infrastructure Projects Driving Development in Arab GCC Countries

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(ABU DHABI, UAE) -- Governments across the Gulf Cooperation Council (GCC) countries are keeping construction alive say the organizers of CityBuild, a new trade show for the region's building and construction industry. It takes place from April 18-21 at the Abu Dhabi National Exhibition Centre during the Citiscape Abu Dhabi annual exhibition and conference.

"Government or government-related investment in shipyard, seaport and airport expansions; new hospitals, colleges and universities; as well as major road upgrades now make up a  significant and growing proportion of the region's construction activity," said Graham Wood, Group Director of CityBuild Abu Dhabi.

The increasing importance of governments' boosting demand through major infrastructure and strategic projects can be seen in the table of top five projects started in 2009 in the six GCC countries produced by industry analyst Proleads. 

Emil Rademeyer, Director Proleads Global, said building projects in the region total half a trillion dollars. Of these, 48 percent are being executed, 27 percent are in the pre-execution phase while 20 percent are on hold and 5 percent were cancelled.

"Of all the GCC countries, Saudi Arabia and Qatar have been the least affected by the global downturn," he explained. "With a large and young population, Saudi Arabia has domestic demand that will ensure growth in all sectors as young Saudis enter the workforce every year." Qatar which counts on huge revenues from gas, Rademeyer said, "probably [has] the least worries about liquidity in the GCC."

Despite all the bad news about Dubai, "the level of construction work nevertheless is still the highest in comparison to neighbouring countries. Thanks to Abu Dhabi, 2010 will be a lucrative year for the Emirates," Rademeyer added.

From the Proleads Report Q4 2009: the top five projects begun in 2009 in GCC countries, based on budget value. The project are due for completion between late 2010 and 2020.


BAHRAIN

1. Amwaj Islands - Al Fanar Resort - Amwaj Mall
(Ossis Property Developers)
Budget: $100 million

2. Reef Island (Lulu Island Resort) - Le Reef
(Ahad Holdings)
Budget: $100 million

3. ASRY Expansion Project - Quay Wall
(Arab Shipbuilding & Repair Yard Company)
Budget: $80 million

4. Holiday Inn Express Manama
(Ishraq Gulf Real Estate Holding)
Budget: $60 million

5. Amwaj Islands - Amwaj Waves - Phase 1
(Lona Real Estate)
Budget: $50 million

KUWAIT

1. KMPW - Jaber Al Ahmed Al Sabah Hospital, South Surra Hospital
(Kuwait Ministry of Public Works)
Budget: $1.1 billion

2. Jahra Road Upgrade
(Kuwait Ministry of Public Works)
Budget: $995 million

3. Subiya Expressway - Phase 3
(Kuwait Ministry of Public Works)
Budget: $160 million

4. The Avenue Shopping Mall - Phase 3
(Mabanee)
Budget: $70 million

5. Al Othman Complex
(Kuwait Public Authority for Minors' Affairs)
Budget: $70 million

OMAN

1. Muscat International Airport Expansion (Seeb) - Phase 1
(Oman Ministry of Transport & Communications)
Budget: $2.18 billion

2. Batinah Coastal Road - Phase 1
(Oman Supreme Committee for Town Planning)
Budget: $326 million

3. Majlis (Parliament)
(Oman Government)
Budget: $260 million

4. Sohar Industrial Port - Deep Water Jetty
(Sohar Industrial Port Company)
Budget: $200 million

5. Ras Al Hadd Airport - Phase 2
(Oman Ministry of Transport & Communications)
Budget: $105 million

QATAR

1. Ras Laffan Port Expansion - Berths & Port Infrastructure
(Qatar Petroleum)
Budget: $1.8 billion

2. Barwa Financial District
(Barwa Real Estate Company)
Budget: $1.44 billion

3. New Doha International Airport Project - Phase 1 - Passenger Terminal Extension
(New Doha International Airport Steering Committee)
Budget: $1 billion

4. Barwa - Doha Exhibition Center and Tower - New Doha Exhibition Center
(Barwa Real Estate Company)
Budget: $800 million

5. The Pearl of the Gulf Development - Perlita Gardens
(The Land Investment & Real Estate Development Company)
Budget: $334 million

SAUDI ARABIA

1. King Abdullah Economic City - Seaport
(Emaar Economic City Company)
Budget: $5 billion

2. Princess Norah University - Package 1
(Saudi Arabia Ministry of Higher Education - Saudi Arabia Ministry of Finance)
Budget: $3.3 billion

3. King Abdullah Financial Centre - 28 Buildings
(Public Pension Agency)
Budget: $2.91 billion

4. Princess Norah University - Package 2
(Saudi Arabia Ministry of Higher Education - Saudi Arabia Ministry of Finance)
Budget: $2.67 billion

5. King Saud University - 12 buildings for Women Colleges in Riyadh
(King Saud University)
Budget: $2.4 billion

UNITED ARAB EMIRATES

1. Al-Reem Island Development (Abu Shuoom Island Development - Emirates Pearl) - Shams - Tameer Towers - Abu Dhabi
(Tameer Holding)
Budget: $2.17 billion

2. Masdar City - Phase 1 - Abu Dhabi
(Masdar)
Budget: $1.6 billion

3. Al-Reem Island Development (Abu Shuoom Island Development - Emirates Pearl) - Shams - Gateway Towers - Abu Dhabi
(Sorouh Real Estate Company)
Budget: $1.6 billion

4. Yas Island Development - Abu Dhabi - Golf Course
(Zabeel Investments - Aldar Properties)
Budget: $951 million

5. Al-Falah Development Project - Abu Dhabi - 5000 villas
(Aldar Properties)
Budget: $704 million

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