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Construction activity across the GCC countries will begin to recover steadily from the beginning of 2020, after a challenging period of subdued performance, Linesight, a cost and project management consultancy, said on Wednesday.
Long-term positive factors such as economic diversification, social reform, especially in Saudi Arabia, and general demographic demand, combined with renewed government ambition, will be the key drivers, it added.
Saudi Arabia currently holds the greatest potential for the construction sector within the GCC, with more than 5,000 capital projects worth well over $1.6 trillion in the pre-execution stage.
“Naturally many regional industry professionals are now upbeat about the prospects for Saudi Arabia,” said Damien Gallogly, regional director for the Middle East at Linesight.
“Saudi Arabia is also actively seeking to improve its rail, airport, port and other transport-related infrastructure, as well as increase residential supply, healthcare, leisure and tourism facilities. Without doubt, the Kingdom remains the most active construction market in the region, signaling exciting times ahead,” he added.
The project developments in Linesight’s own GCC pipeline are currently worth in excess of $10 billion, with average annual revenue growth of over six percent.
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