June 2015

Alpen Capital’s GCC Construction Industry report provides a perspective on the overall GCC construction industry, its market structure, and the key sub-segments of the construction market i.e. residential, office, retail, hospitality, healthcare, leisure and infrastructure, The report includes a discussion on the overall fundamental growth drivers, challenges, developments, and recent trends in the construction industry, along with the profiles of leading players in the region. The GCC construction industry foresees growth from 2015-2018, encouraged by factors such as favorable macroeconomics, higher government allocation, positive demographics, and rising tourism activities. Higher budget allocation towards construction sector, as part of the strategic vision of the member nations, lends an added push to the industry.

The GCC Construction Industry Outlook

• In Saudi Arabia, efforts to boost religious tourism have translated into higher budget allocations towards the hospitality, retail, and infrastructure sectors. The need to create affordable housing options and the recent law allowing for mortgages are expected to result in an increase in construction activities in the near future.
• Optimistic forecasts for the UAE's construction sector for the next few years is based on an economic recovery, safe-haven status, liberal investment climate, relatively advanced real estate regulatory framework, as well as a buoyant infrastructure project pipeline as part of the country’s strategic vision 2021.
• The outlook for Qatar’s residential, hospitality, and infrastructure construction markets appears optimistic due to healthy population growth, mega events, and the economy picking up pace.
• The construction industry in Oman is expected to remain robust driven by a significant increase in infrastructure projects planned by the government, tourism projects, an undersupplied residential market, as well as the construction of commercial space.
• In Kuwait, the construction industry is set to thrive driven by the infrastructure sector, new projects from the private sector to address the need of affordable housing, and an increase in demand for commercial space.
• Developing its infrastructure and reducing its affordable housing shortage remains the principal focus of the government of Bahrain in the coming years.

For more details please click here to access the complete version of the GCC Construction Industry Report.