Opportunities and Challenges in the GCC Construction Market and the Impact of COVID-19 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "GCC Construction Outlook 2020 - Opportunities and Challenges in GCC Construction - MEED Insights" report has been added to ResearchAndMarkets.com's offering.

With $1tn of construction and transport projects planned or under construction, there is no shortage of potential opportunities in the GCC's construction market. And with a further $1.2bn of developments promised through long-term transformational masterplans and megaprojects, such as Saudi Arabia's $500bn Neom future city, the potential of the GCC construction market is not likely to disappear anytime soon.

But while there are abundant opportunities for construction companies in the GCC, there is no shortage of challenges. Over the past five years, contractors, consultants and manufacturers have faced considerable pain and uncertainty as a result of the fall in oil prices in 2014. Cuts to government spending and a growing oversupply in the key real estate markets such as Dubai reduced new project opportunities and increased competition for work, while delayed payments hit cash flow.

In terms of contract awards, 2019 was the worst year for the GCC construction industry since 2012 with only about $57.8bn worth of construction and transport project contracts awarded in the Gulf. The figure is 9.5 per cent down on award levels in 2018. And is far below the $107.5bn of contract awards seen in 2013, the best year on record.

By the end of 2019 however, construction companies were looking forward optimistically to a long-awaited rebound in construction activity, led by the giant Saudi Arabian market. The stabilisation of oil prices and the launch of the kingdom's megaprojects promised a new dawn for GCC construction. By March however, the optimism was dashed as it became clear that the COVID-19 pandemic was not going to pass quickly, and companies shifted their focus to simply surviving the crisis.

While the COVID-19 lockdowns have disrupted supply chains and on-site delivery, a new slump in oil prices in March and April, has raised new doubts about future project opportunities. The problems of the past five years have accelerated in the first five months of 2020, and construction companies must rethink their processes and strategies in order to prepare for the new GCC construction market in a post-COVID-19 world.

Key to rethinking business development strategy is understanding where the future growth will come from, and who the key clients will be.

This report assesses the prospects for construction in the coming two years in the wake of COVID-19 outbreak, and analyses the opportunities and challenges for contractors, consultants and suppliers across the region's six markets.

It is a powerful resource for anyone seeking to do business in the GCC construction and infrastructure sector at a key point in the development of the market.

Key report benefits:

• Gain an immediate insight on the GCC construction market
• Identify new business development opportunities
• Discover the current and planned client activities across the region
• Identify top contractors, clients and competitors
• Asses specific challenges and drivers behind each sub-sector

Key Topics Covered:

1. Executive Summary

2. GCC

2.1 State of the market overview comment

2.2 Project Trends

2.3 Industry issues

2.4 Market snapshots

3. Construction Finance

3.1 Overview

3.2 Bahrain

3.3 Kuwait

3.4 Oman

3.5 Qatar

3.6 Saudi Arabia

3.7 UAE

4. Bahrain

4.1 Impact of COVID-19 on Bahrain construction market

4.2 Overview of Bahrain construction

4.3 Project Trends

4.4 Vision 2030

4.5 Gulf Development Fund

4.6 Budget 2020

4.7 Key trends

4.8 Sector analysis

5. Kuwait

5.1 Impact of COVID-19 on Kuwait construction

5.2 Overview of Kuwait construction market

5.3 Project Trends

5.4 The Kuwait Masterplan

5.5 Budget 2020

5.6 Privatisation Programme

5.7 Sector analysis

6. Oman

6.1 Impact of COVID-19 on Oman construction market

6.2 Overview of Oman construction

6.2 Project trends

6.3 Vision 2020 and the ninth five-year plan

6.4 Budget 2020

6.5. Sector analysis

7. Qatar

7.1 The impact of COVID-19 on Qatar construction

7.2 Overview of Qatar construction

7.3 Project trends

7.4 Vision 2030

7.5 World Cup 2022

7.6 2020 Budget

7.7 Sector analysis

8. Saudi Arabia

8.1 Impact of COVID-19 on Saudi construction

8.2 overview of Saudi Arabia construction

8.3 Outlook for Saudi construction

8.4 Leading clients and contractors

8.5 Project trends

8.6 Vision 2030

8.7 Public Investment Fund

8.8 2020 Budget

8.9 Sector analysis

9. UAE

9.1 COVID-19 in the UAE

9.2 UAE construction industry faces deep challenges

9.3 Dubai

9.4 Abu Dhabi

9.5 Northern Emirates

For more information about this report visit https://www.researchandmarkets.com/r/lpy2oh

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.