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Value of construction in Middle East countries

35 30 25 Value, US$ billion 20 15 10 5 0 Lebanon Bahrain UAE Egypt Kuwait Syria Jordan Saudi Arabia Qatar Oman 2009 estimated 2014 forecast

Source: Davis Langdon, BMI

The largest construction markets in the Middle East are Saudi Arabia and the UAE. Saudi Arabia is judged to have the most favourable construction prospects in the region, due to high levels of liquidity and strong demographic fundamentals. Its population of 25 million is growing at 2.5 per cent per annum and is expected to double in one generation. Saudi Arabias 2010 budget, at US$144 billion, is the largest in history. Government effort to increase private investment has led to developers and construction companies entering the market to gain a share of the growing industry. According to the government there are plans for infrastructure projects totalling US$400 billion in the next five years. This represents substantial opportunities, even if not all projects come to fruition. Construction in the UAE is driven by Abu Dhabi, where the governments investment programme should keep contractors busy, despite the slow progress of contract awards. Construction growth in Egypt and Kuwait is expected to outpace other countries in the region. The Kuwaiti parliament has this year announced a four-year economic development plan worth US$104 billion. The plan includes the development of a new business hub called Silk City, construction of a new container port, a 25km causeway, a new metro system and upgrades to rail infrastructure.
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