Project announcements as of Q3 2021 are 20% above the same of entire 2020
- The BNC KSA Project Index grew 2% over the last quarter to 112.1, indicating a healthy and developing Saudi project market, much reflected by the fact that the region contributed half of the total announcements in Q3 and doubled the project completions as compared to Q2
- The UAE continues to record a 37-38% QoQ hike in project announcements for consecutive quarters, while a 23% QoQ hike was recorded in project awards
- Project announcements in Qatar till Q3 2021 recorded a 54% hike over 2020 announcements
- Project awards and project completions in the GCC till Q3 2021 is still 39% and 47% below 2020 respectively
The GCC construction market is estimated at USD 1.6 trillion, with over 21,000 active projects as of Q3 2021, as per the 29th edition of the BNC Projects Journal, titled, “Flight of the Falcon” and is based on BNC intelligence, the largest project intelligence database in the Middle East and Africa. As per the latest BNC Projects Journal (which is available for free download), Saudi Arabia and the UAE continue to lead the construction market in Q3 2021.
USD 24.7 billion worth of new plans were revealed in the GCC in Q3 2021, with Saudi Arabia sharing half the load. The utilities sector topped the ranks as it contributed 52% to the total announcements followed by the urban construction sector with a 28% share.
“The Dubai Expo is a boon not just for the city but for the entire region as it creates a defining event to reverse the COVID-expat-exodus” stated Mr. Avin Gidwani, CEO of Industry Networks.
The GCC registered USD 16.5 billion worth of new awards in Q3 with the UAE and Saudi Arabia contributing 46% and 32% respectively. Urban construction leads amongst the sectors with a 62% share.
Driven by the UAE with a 45% share, project completions in Q3 adds USD 27 billion worth of finished developments in the GCC followed by Saudi Arabia with a 26% contribution. The urban construction sector again surfaces as the leader with 55% of the total project delivery in the region.
Noticeably, project announcements till Q3 2021 in the GCC have performed extremely well as they are already 20% above the performance in the whole of 2020. However, project awards and project completions till Q3 2021 are lagging behind.
“Even with the massive uptick in economic activity there will be a lag of several months before construction activity picks up and you’re going to have to bid some of this time in longer traffic jams to work, patiently pondering your plans for the exponential growth that is hiding on the horizon” concludes Mr. Avin Gidwani, CEO of BNC Network.
About BNC Network:
BNC (Building and Construction) Network, is the flagship construction market digitization initiative of Industry Networks FZC.
BNC Network is a construction intelligence SaaS system integrated with the Middle East and Africa’s largest and most frequently updated project database. With over 29,000 live construction projects estimated at US$ 11.1 trillion, BNC’s coverage spans 72 countries and 5 sectors – the urban construction, oil & gas, transportation, utilities, and industrial sectors. BNC publishes construction reports and analytics which includes – the quarterly BNC Projects Journal, the daily construction newsletter BNC Bulletin, and the quarterly BNC Project Index.
