Dubai’s construction projects expected to reach 3 trillion dollars
Dubai - The total value of construction projects in the Arab Gulf region will touch 3 trillion US dollars in 2008, according to Proleads, a database company that monitors regional construction projects across various industrial sectors in the Gulf.
The current value of projects reached 2.45 trillion dollars and accounts for a total of 2,835 active projects.
The region's largest construction project currently in progress is Saudi Arabia's King Abdullah Economic City (KAEC), which is valued at 120 billion dollars.
At 168 million square metres and developed by one of Dubai's leading developers, Emaar, KAEC is located north-west of Jeddah and comprises six components: the Sea Port, Industrial Zone, Central Business District (including the Financial District), Resort District, Educational Zone and Residential Communities.
The next two regional ambitious projects are the UAE's Dubailand and Kuwait's Silk City Project, valued at 110 billion dollars and 86 billion dollars, respectively.
Dubailand is a large-scale leisure and entertainment project with 45 individual projects including theme parks, eco-tourism projects, shopping malls, restaurants and residential units with a minimum of 55 hotels.
The Silk City includes construction of natural desert reservation, a new airport, a large business centre and zones that include environment, sports, media, health, education, and industry. Also planned is the world's largest tower - Burj Mubarak Al-Kabir at 1,001 metres.
'The entire value for projects in the Gulf, including those projects at the planning and conception stages, are worth over 2.5 trillion dollars and account for 3,521 projects,' Proleads director Emil Rademeyer said.
Saudi Arabia spearheads the construction drive with projects worth in excess of 1.1 trillion dollars. The UAE ranks second with developments valued at 700 billion dollars, followed by Kuwait in third place at 300 billion dollars.
However, in terms of total number of projects, the UAE has an edge over Saudi Arabia with 1,539 projects compared to the Kingdom's 1,033 projects.
The top five UAE projects include Dubai's Dubailand - Bawadi Development and The Palm Deira, Abu Dhabi's Yas Island Development and Saadiyat Island, and Umm Al Quwain's White Bay Development.
According to Proleads, investment in civil construction surpassed 1.35 trillion dollars and is valued higher than other construction sectors like oil, gas, power, water, and petrochemicals combined.
This steep growth in construction projects has been primarily attributed to the civil construction industry, now almost five times that of construction in the oil and gas sector.
'This boom can be credited to the GCC governments' policy of investing their huge financial resources into the construction of premium residential, leisure and entertainment facilities for the residents as well as tourists,' Rademeyer said.
Driven by the escalating cost of oil, currently hovering at just under 100 dollars a barrel, governments in the Gulf aim to diminish dependence on oil exports and invest their profits into developing the financial, industrial and tourism sectors.
