GCC construction market grows 30%
23 de novembro de 2017
Projects concluded this year up until now reach USD 130 billion, against USD 100 billion in 2016. The sectors largest expo in the Middle East, the Big 5, starts Sunday with the participation of the Arab Chamber.
São Paulo – Year-to-date, the construction market of the countries of the Gulf Cooperation Council (GCC) grew 30%, according to a survey conducted by MENA Research Partners (MPR), one of the main market survey companies of the region. The information was published this Thursday (23) by the Emirates News Agency (WAM).
Year-to-date, finished ventures have reached USD 130 billion in value, against USD 100 billion in all of 2016. From 2009 to 2014, the yearly average value of finished projects stood at USD 135 billion.
“"This surge is driven by economic diversification away from hydrocarbons in leading GCC countries, with a particular focus on sectors like transportation, power and water, manufacturing and energy projects totaling in excess of $1 trillion in the pipeline, along with a shift from oil into renewables where many GCC countries have set ambitious targets to expand their alternative energy generation", said the CEO of MRP, Anthony Hobeika, according to WAM.
Among the most promising sectors he also mentioned tourism and leisure projects, since the nations of the block are trying to become culture and entertainment destinations to foreign and the region’s tourists.
The GCC includes Saudi Arabia, Bahrain, Qatar, United Arab Emirates, Kuwait and Oman. According to WAMJ, the projects within the block are worth USD 2.6 trillion, or 160% of the region’s Gross Domestic Product (GDP), which means that the sector offers business and investment opportunities throughout many years. The UAE and Saudi Arabia account for 70% of the existing projects.
Brazilian companies take advantage of the opportunities offered by this market. This Thursday, for instance, the Brazilian Trade and Investment Promotion Agency (Apex-Brasil) held a seminar in the city of São Paulo about the construction market in the UAE, with the participation of the Dubai-based consulting company Meed Insight, which has done a survey about the sector in the country and gave negotiation tips for the entrepreneurs who attended it.
The CEO of the Arab Brazilian Chamber of Commerce, Michel Alaby, was one of the speakers at the event. He talked about the UAE market for ceramic tiles and ornamental stones for the representatives of this sector.
Alaby pointed out that Brazil still has a lot to achieve. Last year, the Arab country imported USD 467 million worth of ceramic tiles, with Brazil accounting for only USD 1.2 million. In the case of marbles and granite, total imports by the UAE totaled USD 347.7 million, with Brazil’s share at only USD 7.3 million.
The CEO also talked about the opportunities created by large events such as the Expo 2020, to be held in Dubai and that already has been impacting the construction sector. He also highlighted the importance of the presence of Brazilian companies in the market via, for instance, the participation in expos such as the Middle East Stone, of ornamental stones, and Big 5, of the construction sector in general. The Arab Chamber participates in both of them.
Big 5, in fact, starts on Sunday (26) in Dubai. It’s the Middle East’s main expo of the construction market. The Arab Chamber will have a stand where five member companies will exhibit their products: Deca, manufacturer of ceramics and metals sanitary ware fittings, Angelgress, of ceramics, PPA, manufacturer of gates, Tigre, of pipes and connections, and Scanmetal, of construction work equipment.
The trade expo will have over 2,500 exhibitors, from 59 countries, and the visitors are expected to come from 142 nationalities. Brazilian companies will have the support of the Arab Chamber’s Business executive Rafael Solimeo, who will be at Brazil’s stand.
The Big 5 – Construction sector trade expo
From November 26 to 29, 2017, from 11 am to 7 pm
Dubai World Trade Centre - Dubai – UAE
*Translated by Sérgio Kakitani