Construction Industry Update Q2 2015
The construction industry continues to see strong growth with a large number of projects in the pipeline across the emerging market locales. Mega-projects driven by the increased investment in other industries such as education, healthcare and public transport is a huge priority for local governments.
Over 250 mega-projects are either currently being built or in the design phase to be completed by 2020 across the Gulf, increasing the demand for appropriate skilled workers such as foreman’s, construction managers and engineers.
By far the largest market exists in the UAE as the country prepares for the Expo of 2020 and strengthens its transport routes and healthcare infrastructure.
One of the fastest growing construction regions remains as Qatar. Qatar’s stable economy (thanks to their gas reserves) compared to its gulf compatriots and oil rich neighbours Saudi Arabia and UAE mean they have the ability to invest in such industries infrastructure.
For further updates on each nation including growth, jobs and average salaries, read below:
2015 is forecasted to be a year of real growth for the Saudi Arabian construction industry with predictions of a 10.5% year-on-year growth from Q2 onwards the BMI reported.
The fall in oil prices is not an immediate threat to infrastructure financing thanks to the reserves of the country and the centrality of infrastructure development and diversification plans. The drop in oil price may cause petrochemical projects to be postponed however.
In total there are 75 mega-projects currently undergoing construction, concept design or undergoing tendering for the construction contract at the moment in Saudi Arabia.
There are 53 construction foreman’s required in Saudi Arabia with experience of 5-10 years required. There were also 131 advertised vacancies for a construction manager with a range of 10 to 20 years experience required.
Qatar is the fastest growing construction and infrastructure market in the GCC. Furthermore, it remains one of the more favoured markets to work in due to the large investment from the government, stable business environment and growing consumer demand.
Qatar continues to perform strongly as we head into Q2 with a continued strength expected beyond 2015, matching the forecasted 10-year growth of 10.2%
The only concern to market are the price pressures as the costs to construct buildings are among the highest in the GCC. Despite this, the government is navigating capacity constraints well and the price pressures are only likely to be felt in the short-medium term.
In total, there are 46 mega-projects currently being worked on with that number set to increase as they prepare for the FIFA World Cup in 2022.
There were 51 construction manager positions advertised at the time of publication in Qatar, most vacancies seeking managers with 10-20 years experience.
Predictably, the Dubai Expo 2020 is the main driver for construction and infrastructure projects in 2015 and beyond.
Due to this, it is the most active construction hub in the Gulf with over 116 mega-projects currently being built, tendering for contracts or in the design and conception stage.
This will in-turn promise to be the country with the most available jobs.
In the UAE there were 33 foreman jobs advertised both for experienced foreman’s with 5-10 years and inexperienced with 3-5 years experience.
There are 92 construction manager and project manager positions advertised at the time of publication in the United Arab Emirates, with the majority of positions advertised out of Dubai.
Construction and infrastructure growth is expected to remain moderate over the next quarter. There has been a decline in the housing demand but with increase in investment in city infrastructure, the outlook remains positive.
In a recent report, the Singaporean government announced it would commit S$26 billion to the public transport system over the next five years.
One of the main projects will be the addition to the current Changi International airport as they build Terminal 5, set to process up to 50 million passengers per year.
The development of Jewel Changi Airport, a S$1.7 billion mixed use project is set to open in 2018 and terminal 4 at Changi International is set to be ready by 2017.
Other industry infrastructure projects include a significant investment in healthcare infrastructure to help place a greater amount of beds in acute hospitals, community hospitals and nursing homes.
It is set to lay “the foundations for better living standards over many years, we must now invest in the next era of jobs and incomes, and a higher quality of life” said Deputy Prime Minister and Finance Minster Tharman Shanmugaratnam.
At the time of publication there were 31 vacancies for construction foremen with salaries reaching up to $80,000 USD.
Construction Managers are high in demand as new projects begin with over 1,000 relevant results found for construction manager in Singapore with Salaries reaching $130,000 USD.
The slow down in the mining sector continues to weigh on the infrastructure and construction projects in Australia. Despite the slowdown, growth will continue to be positive largely thanks to the residential housing sector and the record low interest rates. An emphasis by the government to develop the countries infrastructure will also help maintain stable levels of projects and jobs.
The growth is predicted be around 3.0%, lower than the historical (10-year) average of 4.4%.
There were over 300 foreman jobs in construction across Australia advertised at the time of publication, with enticing salaries of nearly $110,000 AUD for a site foreman in Sydney.
Construction and project managers are similarly high in demand with 170 jobs found for relevant searches for salaries of $130,000 AUD and over.
In total, there were nearly 3,000 construction job results found with salaries starting at $70,000 AUD.
Oman has revised down on their construction forecast from 5.5% to 4.5%. This drop is due to the impact of the falling oil prices in the region and the effect it has had on the Oman economy.
The negative slide and governments reliance on oil as their main commodity is likely to have a moderate impact on infrastructure investment plans and should they remain low they will have a significant impact and further downward revision in the construction industry, affecting jobs and future projects.
One of the main construction projects due to receive heavy investment on is the transport sector, including the Oman national railway, where the strongest pipeline of projects is pencilled.
There are currently 13 mega-projects under construction or currently tendering for construction, the latter including the Ras Al-Hadd International Airport (tendering) and phase 1 of the Batinah Coastal Road (construction).
There were 172 relevant search results for construction jobs in Oman at the time of publication and 36 foreman jobs available.
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