CONTINUED GROWTH FOR GCC CONSTRUCTION SECTOR PREDICTED

By Muin Abdul Majid

DUBAI, Nov 23 (Bernama) -- Saudi Arabia, Abu Dhabi and Qatar continue to be
the Gulf Cooperation Council (GCC) markets harbouring greatest potential for
the construction industry, according to a study.

Deloitte Middle East's newly-released GCC Powers of Construction 2010 said
Saudi Arabia, which currently has a 38 per cent share of the total construction
projects in the region, was expected to launch contracts worth US$86 billion in
2011.

The oil-rich kingdom currently has US$624 billion worth of projects planned
or underway, the report said.

Deloitte said the United Arab Emirates (UAE) had total construction
projects worth US$958 billion.

"It's expected to see its construction industry grow by a compound annual
growth rate (CAGR) of 9.6 per cent between 2010 and 2014," it said.

Qatar, with a smaller 15 per cent of total construction projects, is
estimated to see its construction industry grow by a CAGR of 12 per cent over
the same period.

Cynthia Corby, audit partner and construction industry leader at Deloitte
in the UAE, said 2010 had been challenging for the GCC construction sector.

She said contractors had to face suspended or cancelled projects while
coping with increased competition for new tenders.

"In the key markets of Saudi Arabia, Abu Dhabi and Qatar, this competition
has been further sharpened by the entrance of international contractors looking
for new opportunities," she added.

-- BERNAMA