Construction projects with a combined value of $67.6 billion were completed in 2014 in the GCC, according to a new study by Ventures ME.
Out of these projects, nearly 42 per cent were in the residential sector while almost 16.9 per cent were commercial buildings, the study said.
Hospitality, medical and retail buildings worth $4.4 billion, $3.72 billion and $854 million respectively were also completed in 2014.
“The top markets across all sectors bar retail were Saudi Arabia and the UAE, while Qatar ranked top with completed retail projects worth US$362 million,” Ventures ME said.
The study also noted that projects worth $72 billion are slated to be completed in the region by 2015 while another set of deals worth $103 billion were set to be awarded across the year.
Meanwhile the GCC’s interior and fit out market during 2014 was valued at $7.3 billion, with Saudi Arabia and the UAE having the largest market share in the region.
The healthcare sector is expected to grow the fastest in 2015 at 91 per cent, from a value of $3.72 billion in 2014 to an estimated value of $7.11 billion, the study said.
“2013 was a strong year for the GCC building construction market with almost all sectors showing significant growth,” said Frederique Maurell, group event director for INDEX and workspace at INDEX.
“For 2014 we’ve seen continued growth with Saudi Arabia, the UAE and Qatar doing particularly well. Looking ahead to 2015 the forecast for both awarded and completed projects shows further increases again with particularly exciting times ahead for the residential and commercial sectors.”
GCC construction sector was heavily affected during the 2008 global financial crisis as many developers cancelled projects due to inadequate liquidity.
With the economy back on recovery mode, many state-backed firms have begun to spend on new infrastructure and retail projects.
In the UAE, the government has announced major projects such as the Dhs6.8 billion Mall of the World development along with infrastructure deals such as Etihad Rail and Dubai Canal project.
Dubai also announced the expansion of its second airport last year in a bid to increase its passenger capacity while Abu Dhabi too is currently building a massive airport and other leisure facilities.