Construction Industry Updates Q3 2015
The construction industry in the GCC will continue to see growth despite the uncertainty around oil prices. This is largely due to the amount of investment from government on infrastructure including hospitality, education, healthcare and public transport.
According to the Alpen Capital report, “The GCC construction industry foresees growth from 2015-2018, encouraged by factors such as favourable macroeconomics, positive demographics, and rising tourism activities. Higher budget allocation towards the construction sector, as part of the strategic vision of the member nations, lends an added push to the industry.”
In part, the investment in infrastructure is due to the falling oil process with the demand to diversify away from hydrocarbons. An expanding population will increase residential property construction as well, with builders needed with experience across small private projects as well as larger corporate projects.
As mentioned in the hospitality report, Dubai is the leading city in terms of hotel construction with a total of 96 total projects and 36,523 rooms currently in the pipeline according to Top Hotel Projects. This number is anticipated to continually increase as they work towards their target of over 100,000 rooms before Dubai 2020.
The construction sector is expected to lead the way for highest job creation in the region according to Tarun Aggarwal, business head, Naukrigulf.com. “As with a booming economy, the phenomenon of job creation will be led by the construction and manufacturing sectors” he said.
Due to this rising demand of projects driving the economic growth of the region it is anticipated that the demand for jobs in the construction sector will rise at a rapid rate.
In Saudi Arabia alone it is forecast that four million jobs will be needed in the next ﬁve years. It will solve a huge problem for unemployed youth, with 50% of the population under 25.
What are some of the main projects in each region?
For obvious reasons, the main motivation for infrastructure projects currently is Dubai 2020. The Al Maktoum International Airport expansion is biggest project currently being developed followed by a large development in Abu Dhabi for Tacaamol – Al-Gharbia Chemicals Industrial City.
Currently, Al Mozaini – Riyadh East Sub Center is the largest project being developed, a whopping $15 billion project. The Khozam Development in Jeddah is currently in pre-execution phase worth $13.3 billion. There are numerous healthcare projects currently being developed and projected to begin construction within the next quarter amounting to $19 billion as well as public transport infrastructure costing $35 billion.
In Qatar, the two largest projects in pre-execution phase and expected to be awarded in 2015 are from QRail, namely the QIRP: Passenger & Freight Rail, budgeted at $15 billion, and from QIRP, whose ‘Passenger & Freight Rail: Phase 2′ is budgeted at $3 billion.
Qatar’s focus on transport infrastructure is a main priority with the influx of tourists and prospective FIFA World Cup on the horizon.
There were 682 total jobs advertised in the construction industry at the time of publication.
334 of them were mid-career level, requiring 3-10 years experience, 148 at management level and 35 entry level.
The most popular location was the UAE with 241 vacancies, 138 of them coming from Dubai. Saudi Arabia had 194 job advertisements, followed by Qatar (116) and Kuwait (35).
The positions in highest demand are supervisors, project managers, foreman, machine operators and various types of technicians.
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