By Issac John www.khaleejtimes.com
Dubai: Underpinned by huge cash reserves, GCC countries will continue to spend on an estimated $172 billion worth of infrastructure and capital projects planned and under way in 2015 — the highest on record to date, Deloitte said.
“The GCC countries have the benefit of huge reserves built up as a buffer over the years, and which they can continue to use to achieve their outlined strategies. They are expected to continue to spend on infrastructure and capital projects in order to achieve strategies for diversiﬁcation,” said Deloitte Middle East’s newly released annual report: ‘GCC Powers of Construction 2015: Construction — the economic barometer for the region’.
Out of the $2.8 trillion projects which are in execution and pre-execution phases across the GCC, the forecast of $172 billion worth of projects this year is against a backdrop of lower oil prices, continuing political unrest and reduced International Monetary Fund growth forecasts across the GCC, said Cynthia Corby, audit partner and leader of the construction industry for the Middle East.
The Deloitte report is based on data gathered from surveys and supported by interviews with some of the most prominent construction industry leaders from the region.
UAE’s Al Maktoum International Airport expansion, budgeted at $32 billion and billed as the biggest airport in the world, is the first among the GCC projects by cost. The $20 billion industrial project in Abu Dhabi for Tacaamol Al Gharbia Chemicals Industrial City is the second largest project. More info