# #TOPIC: Gulf construction spend may hit $200b



## Dubai-Lover (Jul 4, 2004)

read and be amazed!


Gulf construction spend may hit $200b 

Dubai: Construction spend in the six Gulf countries is expected to cross $200 billion (Dh735 billion) by the end of this year.

Organisers of the region's largest construction and building materials exhibition, the Big 5 Show, said yesterday the construction boom in the region is expected to continue for at least another five to 10 years.

A number of landmark projects are coming on stream around 2006-08 that are expected to fuel strong growth in the region's non-oil economy.

The Gulf's real estate sector, which is undergoing reform, is already benefitting from high liquidity available in the neighbourhood. Its impact on the construction sector is already visible and felt across the region, especially in Dubai.

"For every additional US dollar on the price of a barrel of oil, the income of the GCC states increases by $5 billion.

"With the current oil price ranging around $50 per barrel, total income of the six GCC states is expected to cross $250 billion from oil," said Jonathan Berger, commercial director of dmg World Media, organisers of Big 5 Show.

"Most of these funds are usually channelled towards infrastructure development and construction projects.

"Based on the information that we have gathered so far, total spend in the GCC's construction sector would exceed $200 billion (Dh735 billion), of which $50 billion (Dh183 billion) is being spent on the UAE's mega projects."

The rest, about $150 billion (Dh550 billion) is being spent in the other GCC states, he said.

With oil prices still staying above $45 per barrel, the Gulf's construction sector is expected to see a continuous boom in the short and medium terms.

Meanwhile, over 2,100 local, regional and international construction and building material suppliers from 50 countries are participating in the upcoming Big 5 show to gain their fair share in the region's construction market.

These companies will be represented through 1,637 stands, many of which will be part of 28 national pavilions spread across 26,714 square metres of exhibition space at the Dubai World Trade Centre.

The event takes place in all the eight halls of the Dubai World Trade Centre from November 20 to 24, from 9.30am to 1pm and 5 to 9pm daily except the first day, when the show opens at 10am and runs until 7pm.

More than 30,000 buyers and decision makers from the public and private sectors are expected to attend this year's event.


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## Guest (Nov 20, 2004)

But in dubai, aren't most of the projects financed by outside investors.


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## AltinD (Jul 15, 2004)

Outside maybe, but still within the Gulf countries.


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## Dubai-Lover (Jul 4, 2004)

Dubai-Lover said:


> A number of landmark projects are coming on stream around 2006-08 that are expected to fuel strong growth in the region's non-oil economy.


can a native english speaker tell me what this means please.
i don't understand the meaning of "coming on stream" in this context.

does it mean new landmark projects will be launched during this period of time or does it mean the landmark projects currently under construction like palm islands and the world will be finished then?


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## Dubai-Lover (Jul 4, 2004)

saudi arabia is on its way too

Saudis to invest $290b in residential projects 

Dubai: The property and construction sectors have been the direct beneficiaries of high oil prices and the consequent increase in liquidity in the Gulf, according to industry officials.

These factors have also played a crucial role behind the launch of major development projects that are expected to keep the Gulf's construction sector buoyant for some time.

Saudi Arabia's future development would require investment to the tune of a massive $900 billion (Dh3.3 trillion) over the next 20 years, according to government forecasts.

This includes a $290 billion (Dh1.06 trillion) investment in residential development, $140 billion (Dh513.8 billion) in infrastructure, $115 billion (Dh422 billion) in power and utility, $90 billion (Dh330 billion) in desalination and other water projects. Urban development activities represent about 26 per cent of the total construction spending in the GCC, followed by the social sector, which makes up 21 per cent, according to dmg World Media, organisers of the Big 5 Show.

Commercial, roads, utility and industrial construction represent 18 per cent, 15 per cent, 11 per cent and nine per cent, respectively.

There is strong region-wide demand for new housing, and the decision by some Gulf states to allow expatriates to buy property has catalysed a housing construction boom.

Industrial construction is still expanding, and new investment in the power sector alone is set to hit $200 billion by 2020.

Major local, regional and international construction companies and building materials suppliers are gathering in Dubai at the Big 5 Show today to grab a slice of the Dh735 billion in projects that are in various phases of implementation. The five-day mega exhibition and conferences have attracted 2,100 local, regional and international construction and building material suppliers from 50 countries who will be represented trhough 1,637 stands at the Big 5 Show the largest regional exhibition of construction and building materials.

On the sidelines, Gulf Construction Conference will provide an indepth industry analysis of the industry development to the professionals. The conference opens at Emirates Towers Hotel today.


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## Dubai-Lover (Jul 4, 2004)

somebody hit me hard to wake me up, i must be dreaming 

Saudi needs $900bn construction investment 


Saudi Arabia will require about $900 billion investment in the building and construction sector over the next 20 years, a report said.

The investment will include $290 billion in residential development, $140 billion in infrastructure, $115 billion in power and utility, $90 billion in desalination and other water projects. 

Urban development activities represent about 26 per cent of the total construction spending in the GCC, followed by the social sector, which makes up 21 per cent, according to dmg World Media, organisers of the Big 5 show.

Commercial, roads, utility and industrial construction represent 18 per cent, 15 per cent, 11 per cent and nine per cent, respectively.

Industrial construction is still expanding, and new investment in the power sector alone is set to hit $200 billion by 2020, it said.

The five-day exhibition opened in Dubai today.


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## Dubai_Boy (May 21, 2003)

Dubai_Lover but this into consideration , The UAE which is a much smaller country and has a much smaller population spent almost a trillion on infrustructure

Saudi arabia has not done a thing for its people in many areas , its 2 million square kilometers in size and has over 25 million people

so 900 billion aint that much


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## Qatar4Ever (Feb 3, 2004)

52bn projects to come up in Qatar 

Oil and gas and non-energy projects worth $52 billion will get going in Qatar in the next two years, according to an expert.

Of these budgeted projects, $6 billion worth projects have already been sanctioned by Qatar, the highest by a GCC country, Meed projects' group sales manager Alan England was quoted as saying by Gulf Times.

In terms of budgeted projects, Qatar is behind only Saudi Arabia, which has $53.6 billion worth of projects in the pipeline. The UAE stands third with $47 billion worth of projects, he said.


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## Dubai-Lover (Jul 4, 2004)

Dubai_Boy said:


> Dubai_Lover but this into consideration , The UAE which is a much smaller country and has a much smaller population spent almost a trillion on infrustructure
> 
> Saudi arabia has not done a thing for its people in many areas , its 2 million square kilometers in size and has over 25 million people
> 
> so 900 billion aint that much



i don't know what is much for you! 

saudi arabia has also invested more than $900bn in the united states of america, so they own 7% of the united states!!!

somehow i don't believe dubai has spent 1 trillion only in infrastructure. do you have press releases or sources?


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## Dubai_Boy (May 21, 2003)

Haha , i guess i should of been more clear , i though you would ask me that question , that figure wrote is what the Whole of the UAE spent in the past 30 years

Saudi arabia plans to spend almost as much in 20 years , so thats why i gave the area and pop of saudi to show you it aint much


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## Qatar4Ever (Feb 3, 2004)

ok! i dont care if its saudi arabia, china, or monaco, one trillion is alot no matter what!


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## BinDubai (Aug 31, 2004)

Qatar4Ever said:


> 52bn projects to come up in Qatar
> 
> Oil and gas and non-energy projects worth $52 billion will get going in Qatar in the next two years, according to an expert.
> 
> ...


True  but that's just pipeline projects bro because Qatar have just started to benefit from it's LNG reserves So no doubt it will invest alot weather here in the UAE pipeline projects have been funded since a long time ago


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## Trances (May 19, 2003)

well much need for Saudi Arabia !


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