Construction around the world is staged to outpace the global GDP growth over the coming decade and the MENA region will lead that growth, according to a recent report.
Pricewaterhouse Coopers (or PwC) released a report entitled Global Construction 2020 that expects construction around the globe to swell by 67 percent, up from the $7.2Tr now recorded annually to $12Tr by 2020.
Construction growth in the MENA (Middle East & North African) region is forecasted to overtake global growth rates.
Construction spending in the Middle East region is expected to reach $4.3Tr in the next ten years, which is an 80 percent growth rate from now until 2020.
Mohammad Dahmash, construction, real estate and engineering leader for PwC Middle East, stated that there will be a certain emphasis placed on the social infrastructure, as well as the affordable housing, required by the native population.
Procurement within the region is becoming more sophisticated and nations in the Middle East are now applying helpful schemes such as public and private partnerships and ‘Build, Operate and Transfer’ set-ups. These support financing for the projects and also help keep the execution and implementation of the projects efficient and up to global standards.
Construction around the region will continue to grow as a result of swelling populations, economic strength, a push to diversify and in certain cases such as Qatar’s 2022 FIFA World Cup, the scheduling of international sporting events.
The quickest growing construction sector found in the report is Qatar.
There will also be some facilitators of growth within construction sprouting up over the next decade, including alterations to the Saudi Arabian mortgage laws. This will give residential construction a push and encourage private investors to get involved in infrastructure projects across the area.
There was some caution in the report, however, based on the recent political climate in the area, which could result in construction delays.
Charles Lloyd, PwC Middle East’s capital projects head, stated that the Global Construction 2020 report shows MENA as the major contributor to a growing worldwide construction sector.
Some of the powerful stimuli present in the area include demographics, a push within the regional governments to balance the economic climate and the resulting growth in the regional economies, according to Lloyd.
Rapid growth will still be seen in India and China, as well as a rebounding market in the United States, as stated by the PwC report.
These elements of growth will cause a greater materials demand and greater competition for other important elements in the chain of supplies.
Lloyd notes that these conditions may indicate a shift from a buyer’s market to more of a seller’s market globally. He added that governments around the world should ensure their programs of investment are designed to attract the leading talent.Paul Holdsworth, Staff Writer, Gulf Jobs Market News