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GCC to award $65.5b projects by year-end
Abdul Basit / 30 July 2012
The UAE continues to enjoy nearly half of the total GCC building construction market, followed by Saudi Arabia at 33 per cent, according to a new research.
In GCC, construction projects worth $65.5 billion are expected to be awarded across all building sectors by the end of 2012, showing a 13 per cent increase over last year’s projects, according to the latest research by Ventures ME commissioned by dmg:events, the organising team behind the INDEX International Design Exhibition.
In 2011, construction projects worth $46.52 billion were completed in the GCC, a figure expected to increase dramatically, up 71 per cent to $79.75 billion in 2012.
The research revealed that the UAE continues to garner the largest share of the total GCC building construction market — accounting for almost half (48 per cent), with Saudi Arabia taking a further third (33 per cent) followed by Kuwait (eight per cent), Qatar (six per cent), Oman (three per cent) and Bahrain (two per cent).
The value of commercial real estate projects is set to almost double in 2012 to $15.3 billion from $7.7 billion in 2011 as the GCC continues to be a leading luxury destination for retailers, with four of the six GCC countries ranking among the top 20 global retail destinations, according to the Global Retail Development Index (GRDI).The hotel and hospitality sector will also witness enormous growth throughout 2012 with project values set to treble to $7.3 billion, up from $2.7 billion in 2011. This growth is a direct result of the increased demand for hotel space in the GCC where room revenues are set to reach $22 billion in 2012 and expected to increase to $27 billion by 2015.
“One of the findings from the report is that GCC countries spend more money on average on interior contracting and fit-outs elements of a construction project than their counterparts in the US, Europe and Japan,” said Naomi Barton, INDEX Event Director.
“The hotel and hospitality sector is the biggest segment spender, with over 22.5 per cent of total project cost allocated to interior contracting and fit-out projects – more than any other sector within the GCC’s building construction industry. INDEX International Design Exhibition 2012 will respond to this huge market growth and cater to the demand of all construction projects,” Barton said.
The 22nd edition of Middle East and North Africa’s largest and longest established Interiors and Design Exhibition will run from 24th September 2012 till 27th September at the Dubai World Trade Centre, Dubai, UAE.
INDEX 2012, themed “Where Inspiration Thrives,” will cover 34,000 sqm gross space of the Dubai World Trade Centre exhibition centre, occupying halls from 1 to 8 and Zabeel Hall. Over 900 exhibitors from 45 countries — including Brazil, Canada, Greece, Germany, Italy, Malaysia, Spain, and UK — have booked floor space to showcase their products.
INDEX 2012 will replicate the successful and easy-to-walk-around product specific show structure that was introduced for last year’s edition; plus five completely new sectors — Inspire, Surface & Finishes, Couture, Fixture & Fittings and Furniture — have been added to the six already existing — Furnishings, Kitchen & Bathroom, Lighting, Outdoor Living, InRetail and Textiles — giving visitors an even more comprehensive and extensive offer.
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