NEW YORK, Nov. 16, 2016 /PRNewswire/ -- Report Highlights: GCC Construction Contract Awards from 2005-2015- By Country, GCC Future construction contract awards from 2016-2020- By Country, GCC Construction Contract Awards by Sub Sectors, GCC Projects On Hold, GCC Cancelled Projects, GCC List of Projects to be awarded in 2016, GCC Energy, Utilities and Industrial Project Spend – 2010-2020, GCC Real Estate Contract awards – 2010-2020, GCC Transport Contract Awards- 2010-2020, GCC Social Infrastructure Project Awards – 2010-2020, GCC Power Sector Project Spend Analysis-2010-2020, GCC Oil and Gas Project Spend Analysis 2010-2020, GCC Industrial Projects Spend 2010-2020, GCC Waste and Water Project Spend Analysis 2010-2020, GCC Mixed Use Projects Spend Analysis 2010-2020, GCC Airport Projects Spend Analysis 2010-2020, GCC Railway Projects Spend Analysis 2010-2020, GCC Road Construction Projects Spend Analysis 2010-2020; GCC Infrastructure Average Contract Size By Country and Sub Sector, GCC Infrastructure Projects Ownership Type (Share of Public, Private Sector) By Country and Sector, Growth in PPP share in GCC Infrastructure, GCC Greenfield and Brownfield Project Spend Analysis, GCC Infrastructure Project Finance Market Size- Project Debt to Equity Ratio By Country and Sub-Sectors, GCC Infrastructure Projects with Cost Overrun By Country and Sectors with Reasons for cost overrun, GCC Projects Time Overrun with Reasons – By Country and Sector, GCC Infrastructure Project Returns – Project IRR By Country and By Sub-Sectors
GCC infrastructure market is witnessing many changes, particularly in the Government investment plans after the oil prices slashed half from 2010 numbers (down from ~USD 110 a barrel in 2010 to ~USD 50 in 2015). Pressure has increased on these oil based economies creating huge fiscal pressure. In Saudi Arabia – the biggest construction market on basis of contract awards, the fiscal deficit soared to USD 98 billion in 2015 from ~USD 15 billion in 2014. The country has already initiated to consolidate its investment in the need based sectors from any luxurious project investments.
GCC Construction Opportunities till 2020
1) UAE: Post the announcement of Dubai 2020 expo event, the Emirate is a wave of opportunity with Government setting aside DH 17 billion in 2016 budget for infrastructure development till 2020. The investment will a spread over different asset classes broadly covering housing, roads, railways, schools, health facilities and public buildings. Abu Dhabi is the next destination for investors eyeing long term growth. The emirate has earmarked USD 100 billion to be invested till 2030 and majority of it will be ploughed in real estate and transportation sector. However, the country is also speculated to be under financial constraints which could impact the execution of the big plans
2) Saudi Arabia has huge pipeline of megaprojects (i.e. projects worth USD 1 billion and above) with more than 80% of the investment flowing through these multi-billion dollar projects. Of the megaprojects pool, the top 3 ones includes the most talked about projects: KA CARE Renew*able Energy Program worth USD 150 billion alone, Saudi Arabia Rail expansion program worth USD 97 billion and KACARE Nuclear Power Reactor worth USD 70 billion. However, Saudi Arabia has many projects undergoing overruns especially time overruns. Most of these megaprojects are facing overruns during the construction period
3) As the host country of FIFA 2022, Qatar has invested a huge sum over the last few years in the development of the required infrastructure. The country has devised plans to draw USD 222 billion of amount by 2022 for the infrastructure projects including stadiums, hotels and other transport related facilities. In the year 2013 when Qatar won the FIFA 2022 bid, it had awarded projects worth more than USD 50 billion. The country still has many infrastructure opportunities with a huge pipeline of projects planned to be awarded between 2016 and 2020
4) In the future, Kuwait and Oman have a huge pipeline of multi-billion dollar projects planned and are the next hot spots in the GCC infrastructure market
GCC Construction Market Risks and Challenges
Though GCC infrastructure has a robust project pipeline of USD 2 trillion to be awarded from 2016-2020, there are many market and project level risks prevailing and obstructing an effective project delivery or growth of companies:
1) The average contract sizes of projects in GCC has multiplied over years and currently, a large share of these projects are contracts worth USD 20 billion and above. This signifies the increasing complexity of projects
2) Declining project performance: A large share of the total GCC projects have faced either time overrun or cost overrun and the impact has been substantially huge. Average project cost overrun in GCC has been more than 60% and the average time overrun is approx. 4 years of delay
3) Other factors include extreme consolidation of the owners landscape with a huge preference for the local contractors, tightening financial market resulting in delays in sourcing the required funds, conservative approach towards PPP projects, huge dependency on equity and so on
The report titled 'GCC Construction Outlook to 2020 – Track USD 2 Trillion of Infrastructure Opportunities with Sector Deep Dives and Project Risks and Returns', provides a detailed analysis of the infrastructure and construction industry with a thorough sub-sector level spend forecast. While identifying the existing opportunities in the region, the report also lays down the facts on the risks involved and expected project return in the infrastructure market. The report includes market sizing of upcoming or un-awarded project contracts at a more granular level and provides forward-looking analysis on top clients or owners with their respective working or partnership model.
Under the special feature, report additionally provides detailed coverage on rarely reported data - 'Project Financing' and 'Project Risks and Returns'. Under the heading, it covers Debt/ Equity values with DE ratios and financier details by sub- sector; Cost Overrun and Time overrun with underlying driving factors (sector level); and Returns as targeted Internal Rate of Return (IRR).
How BrikStats Report Helps?
- Find the growth pockets in the GCC market by mapping future opportunities against risks and returns across the six countries including UAE, Saudi Arabia, Qatar, Kuwait, Bahrain and Oman and sectors
- Formulating internalization or expansion strategies, i.e. companies entering or plans to enter the GCC or Middle East infrastructure / construction market
- Enable existing companies to increase their market share or enter new sub-sectors by tracking recent trends and changing market dynamics
- Find business leads and plan business development goals through in-depth industry analysis along with 5 year forecast
- Mitigate risk and exposure by understanding the project related challenges and other policies and government behavior
Read the full report: http://www.reportlinker.com/p04029852-summary/view-report.html
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