Industry Reports Snapshot
GCC PRECAST MARKET OUTLOOK – bnc Sept. 2017
- New development projects in the early stages of construction are expected to drive the demand for precast materials.
- The precast market has room for growth due to the increasing usage of precast molds in development projects. New technologies entering the market allow for fully-precast high-rise buildings as well as a wider application in infrastructure projects.
- The GCC has the highest number of active construction projects in the MENA Region.
- The total estimated value of projects in the GCC is USD 1.7 trillion with approximately 37% of all project values in the design, concept and tender stages of development indicating a steady flow through of new investments.
- The UAE has the largest volume of construction activities in the region with an estimated 5,350 projects currently underway, making up approximately 45% of the total number of active construction projects in the region.
- Dubai makes up approximately 51% of all construction activities in the UAE with a high volume of projects in commercial and residential buildings.
Projects in the pipeline
- There are approximately 500 projects in the construction pipeline (i.e. concept, design, and tender)
- Some of the new projects that are expected to support the demand for precast materials include:
- the Bur Dubai Deep Sewerage Tunnel (USD 5.6 billion)
- the Dubai Creek Mall (USD 5 billion).
Projects under construction
- Dubai has approximately 2,750 active projects with a combined estimated value USD 252 billion.
- Some of the high value projects underway include:
- the Dubai Metro Red Line Extension (USD 2.9 billion),
- Phase 1 of the Hassyan Coal-Fired Power Plants (USD 2.5 billion)
- the Sobha Hartland Development (USD 2.1 billion).
- The transport sector is worth USD 26 billion, constituting approximately 10% of all project investments in Dubai.
- There are 7 transport projects worth USD 1 billion or more and make-up approximately 64% of all transport project values in the city.
TOP GCC PROJECTS – Ventures Onsite Feb 2018
- Downtown Jebel Ali: USD 19 billion. Est. Completion 2020
- Dubai Creek Harbour: USD 18 billion. Est. Completion 2022
- Madinat Al Arab at the Waterfrom: USD 9 billion. Est. Completion 2025
- Dubai Wholesale City: USD 8 billion. Est. Completion 2028
- Deep Tunnel Sewerage System in Dubai: USD 8 billion. Est Completion 2025
- Neom Business City: USD 500 billion. Est. Completion 2035
- 500,000 housing units: USD 68 billion. Est. Completion 2035
- Riyadh Metro: USD 23 billion. Est. Completion 2019
- Five new islands: USD 132 bn. Est. Compl. 2030
- Kuwait Intl. Airport expansion: USD 6bn. Est. Compl. 2022
- New Bahrain International Airport: USD 10 bn. Est. Compl. 2030
- Bahrain Rapid Transport Network: USD 8 bn. Est Compl. 2030
- Sino-Oman Industrial City: USD 10.7 bn. Est. Compl. 2022
- Madinat Al Irfan: USD 1.5 bn. Est. Compl. 2021
GCC RAIL MARKET – Ventures Onsite – Dec 2017
- The GCC railway is a proposed railway system spanning 2,100 km to connect all six GCC-member states. In October 2017, UAE’s Infrastructure Development Minister Abdullah Belhaif al-Nuaimi told Reuters that the GCC countries involved in the railway project were still aiming to complete the network by 2021.
- Around US$ 8.7 Bn worth of projects are expected to be awarded in 2018.
- As of 28th November 2017, the total GCC rail projects under construction are estimated to be worth US$ 240,974 Mn.
- KSA (US$ 116,192 Mn.) and the UAE (US$ 47,540 Mn.) account for a larger chunk of the GCC’s rail projects under construction.
- KSA has a development plan worth US$ 97 Bn. for the introduction of a cross-country rail network capable of carrying passengers and freight by 2040.
- KSA Projects include:
- US$ 10 Bn Haramain high-speed rail line linking Mecca and Medina via Jeddah and King Abdullah Economic City. The Haramain High Speed Rail Line between Makkah, Jeddah and Madinah will open in March 2018. The 95-km Madinah metro is slated to become operational in 2020.
- The US$ 12 Bn. Jeddah Metro is also scheduled for completion in 2020.
- Oman’s spending on infrastructure projects, especially rail, is extremely high. Rail construction is one of the country’s priority projects, followed by oil and gas, and roads and bridges.
UAE CONSTRUCTION SECTOR OVERVIEW – bnc Feb. 2018
- The UAE has 11,640 active projects, valued at USD 783.1 billion.
- 51% of all active GCC projects take place in the UAE, amounting for 33% of the total value.
- Urban construction is the number one sector, with 9,987 projects valued USD 531.3 billion, followed by the industrial sector (569 projects worth USD 33.1 billion), the utilities sector (521 projects worth USD 85.3 billion), transport (477 projects worth USD 67.5 billion) and the oil & gas sector (86 projects, valued USD 65.9 billion in total).