The value of new infrastructure projects awarded in Qatar is expected to hit $26.2 billion by the end of 2014. The value of new projects across the GCC is expected to surge 77.8% year-on-year to $86 billion.
Citing data released by leading Mena construction project tracker Ventures ONSITE, Global Investment House (GIH) noted in its second quarter of 2014 GCC Construction Contractors report that value of new projects in the UAE would rise significantly to $15.8 billion in 2014 from less than $3 billion in 2013. Small contributors in 2013, such as Kuwait and Bahrain, are expected to witness ten-fold and eight-fold jump in total value of projects to $3.5 billion and $3.4 billion, respectively, in 2014.
Value of new projects undertaken in Oman is projected to increase 35 percent year-on-year to $7.4bn in 2014. However, the total value of new projects in Saudi Arabia declined 13% YoY to $29.3 billion from that in 2013.
The GIH note said profits of GCC contractors dropped 17.7% YoY to $42 million in Q2, 14 from $51 million in Q2, 13, the first decline in five quarters. Total value of projects awarded fell to $1.6 billion in Q2, 14 from $2.9 billion in Q2- 13, mainly due to a decline in the order receipt of UAE-based companies.
The GCC construction market is valued at $2.5 trillion, including planned and ongoing projects, according to MEED. Qatar has projects worth $270.1bn, accounting for 11.2 percent of the total construction market. Saudi Arabia continues to enjoy the highest market share of 44.3% , with projects valued at $1.1 trillion. The UAE holds the second-highest share at 30.3% , with project value totalling $717.7 billion.
Order backlog surged 10.8% YoY to $13.5 billion in the region in Q2, 14, after rising 23.2% in Q1- 14. Total value of projects awarded was $1.6 billion, down 44% YoY from $2.9 billion in Q2- 2013. On a quarter-on- quarter basis, projects awarded decreased marginally by 2.9% . The UAE-based companies dragged the sector’s total project awards.
The region’s construction sector’s gross margin stood at 11.3% in Q2- 14, marginally up from 11.2% in Q2- 13. However, on a QoQ basis, gross margin contracted from 11.6% in Q1- 14. Operating margin contracted to 4% in Q2- 14 from 5.4% in Q2- 13.
GCC’s construction industry continued to expand in Q2- 14, which is clearly reflected in the 10.8% YoY growth in order backlog. However, the sector’s profits, after growing for four consecutive quarters declined 17.7% YoY to $42 million in Q2- 14.
Citing data released by leading Mena construction project tracker Ventures ONSITE, Global Investment House (GIH) noted in its second quarter of 2014 GCC Construction Contractors report that value of new projects in the UAE would rise significantly to $15.8 billion in 2014 from less than $3 billion in 2013. Small contributors in 2013, such as Kuwait and Bahrain, are expected to witness ten-fold and eight-fold jump in total value of projects to $3.5 billion and $3.4 billion, respectively, in 2014.
Value of new projects undertaken in Oman is projected to increase 35 percent year-on-year to $7.4bn in 2014. However, the total value of new projects in Saudi Arabia declined 13% YoY to $29.3 billion from that in 2013.
The GIH note said profits of GCC contractors dropped 17.7% YoY to $42 million in Q2, 14 from $51 million in Q2, 13, the first decline in five quarters. Total value of projects awarded fell to $1.6 billion in Q2, 14 from $2.9 billion in Q2- 13, mainly due to a decline in the order receipt of UAE-based companies.
The GCC construction market is valued at $2.5 trillion, including planned and ongoing projects, according to MEED. Qatar has projects worth $270.1bn, accounting for 11.2 percent of the total construction market. Saudi Arabia continues to enjoy the highest market share of 44.3% , with projects valued at $1.1 trillion. The UAE holds the second-highest share at 30.3% , with project value totalling $717.7 billion.
Order backlog surged 10.8% YoY to $13.5 billion in the region in Q2, 14, after rising 23.2% in Q1- 14. Total value of projects awarded was $1.6 billion, down 44% YoY from $2.9 billion in Q2- 2013. On a quarter-on- quarter basis, projects awarded decreased marginally by 2.9% . The UAE-based companies dragged the sector’s total project awards.
The region’s construction sector’s gross margin stood at 11.3% in Q2- 14, marginally up from 11.2% in Q2- 13. However, on a QoQ basis, gross margin contracted from 11.6% in Q1- 14. Operating margin contracted to 4% in Q2- 14 from 5.4% in Q2- 13.
GCC’s construction industry continued to expand in Q2- 14, which is clearly reflected in the 10.8% YoY growth in order backlog. However, the sector’s profits, after growing for four consecutive quarters declined 17.7% YoY to $42 million in Q2- 14.
Source:
Mubasher
