Saudi bucking downbeat construction industry trend

      Published on Wednesday, 19 June , 2019      108 Views     
Saudi bucking downbeat construction industry trend

  • Gulf News

Construction activity in Saudi Arabia remains robust, with a sharp increase in new business enquiries and workloads in Q1, according to the latest RICS Middle East Construction and Infrastructure survey results.



The report read:

“This solid pipeline of new activity appears to support the outlook for an increase in workloads over the next 12 months, as well as headcount, as 68 percent of respondents stated to increase hiring over the year.”

However, the outlook for Oman and the UAE was less positive with respondents in the first quarter noting tight margins, competition and soft demand.

“With the oil prices remaining comparatively subdued, the survey indicates macroeconomic backdrop to have contributed to some of the downbeat sentiment during the first quarter. However, with supply tightening up due to the US sanctions and a drying up global spare capacity, oil prices have potential to increase over the next quarter, ultimately acting as a catalyst for the more optimistic workload outlook over the next twelve months, particularly in Saudi Arabia. Headline workloads (in net balance terms) are also expected to increase in the UAE (15 percent) over the next year, although at a more modest pace,” read the report.

Tender price predictions for building and civil engineering over the next twelve months in Oman and the UAE indicate a decline, with more than 70 percent of survey participants citing competition and a lack of demand as a constraint on activity.

Further margin deterioration is also expected over the next year in the region, apart from Saudi Arabia.

Respondents reported this might be due to increased cost of materials and the difficulty of passing the increase on to clients – more than 90 percent of contributors in Oman and the UAE reported financial constraints as a drag on activity.

The Middle Eastern market also experienced a pullback in private commercial and industrial workloads. However, this was not the case for infrastructure workloads, of which roads and water and utility projects workloads were noted to have increased regionally this quarter.



Respondents reported a decline in work on infrastructure projects in Oman, with work on airports, road, rail and harbours/ports all declining during the first quarter. A majority survey participants in Saudi Arabia, Oman and the UAE also noted the need for new projects over the repair and maintenance of existing infrastructure.

Keywords:
Category Gulf News, Saudi Arabia | 2019/06/19 latest update at 1:00 PM
Source : Arabian Business | Photocredit : Google
109 Views
Comments Add comment



Gulf Media

Related Articles

The editorial staff of Dubai Today would like to give all of its readers from Gulf and Dubai and the whole world the opportunity to participate actively in the development of the website! If you have something interesting, fun, scandalous - just something worth to be seen from more people. Capture it and share it in the Dubai Today with a short text.

Do you have information you want to reach our readers?

Send article/s

You can subscribe to our Facebook, Twitter and Google pages or use our RSS feed channel to always read the most important news about Dubai, the Gulf and the world.


Dubai ruler Shaikh Mohammad Bin Rashid Al Maktoum turns 70 today Emir

Dubai ruler Shaikh Mohammad Bin Rashid Al Maktoum turns 70 today

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler…

Sheikh Mohammed meets Egyptian President in Beijing Emir

Sheikh Mohammed meets Egyptian President in Beijing

His Highness Sheikh Mohammed Bin Rashid Al Maktoum, Vice President, Prime Minister and Ruler of Dubai, met President…

HH Sheikh Mohammed Bin Rashid Al Maktoum Emir

HH Sheikh Mohammed Bin Rashid Al Maktoum

Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid…

HH Sheikh Mohammed Bin Rashid Al Maktoum Emir

HH Sheikh Mohammed Bin Rashid Al Maktoum

Vice President and Prime Minister of the UAE and Ruler of Dubai His Highness Sheikh Mohammed bin Rashid…

GULF TV

Popular in GULF TV

Freelancing in the UAE region

18300 Views

The global freelancing market is set to grow $20bn by 2020. Where does the market stand here in…

Latest videos in GULF TV

Events

Lifestyle

Culture

Sport

Science & Technology

Government