GCC’s construction sector to see US$111.8 billion worth in new contractor awards in 2022 – Ventures ONSITE
The Gulf region’s construction sector is tipped to bounce back over the next two years after a pandemic-affected 2020, with regional construction contractor awards in 2021 and 2022 expected to be worth US$115.2 billion and US$111.8 billion respectively.
A September 2021 whitepaper published by intelligence platform Ventures ONSITE, said government stimulus spending aimed at economic recovery was the key driver of a market rebound, after a tough year in 2020 when contractor awards dipped to US$75.2 billion following Covid-19 lockdowns and oil price fluctuations.
As of June 2021, the total GCC (Gulf Cooperation Council) construction project market was estimated to be worth US$3.2 trillion, covering buildings, infrastructure, and industrial, along with the power & water, and oil & gas sectors.
Buildings, comprising residential, commercial, mixed use, airports, sports facilities, hotels, healthcare, and education facilities, will be the largest contributor to construction sector in 2022, with new contractor awards estimated to value US$45.1billion. That’s followed by oil & gas projects (US$22.6 billion), and infrastructure (US$17.5 billion).
This in turn is expected to fuel demand for related commercial, outdoor, and industrial lighting fixtures and controls, along with building automation solutions, all of which will be on show at next week’s Light Middle East exhibition, which takes place from 28-30 September at the Dubai World Trade Centre.
Ventures ONSITE’s whitepaper was published exclusively ahead of the annual three-day event, which will feature around 100 exhibitors and brands from 23 countries presenting their latest innovations with a core focus on LED technology, IoT, smart buildings, and human-centric lighting.
According to the World Bank Gulf Economic Update, following a year of economic distress, the GCC economies are expected to return to an aggregate growth of 2.2 percent in 2021, with the construction sector a key indicator of economic development.
The UAE and Saudi are naturally at the forefront of the sector, with building construction contractor awards in 2022 expected to be worth US$11.4 billion and US$20.1 billion in these countries respectively. Qatar, which is set to host the football world cup next year, will list US$5.5 billion worth of building contracts.
It all bodes well for the market, along with leading global and local manufacturers and consultants at the 15th edition of Light Middle East, the region’s premier exhibition and conference for lighting, design and technology.
“The resurgence in the GCC construction industry is expected to be strongly reflected by an increase in demand for the entire scope of decorative, architectural, outdoor, and indoor lighting solutions, the latest range of which will be showcased at Light Middle East 2021,” said Dishan Isaac, Senior Show Manager for Light Middle East.
“Whether it’s Solid State Lighting solutions, solar technology, sport stadia lights, or vertical farming LEDs, to UVC LEDs configured to kill the Covid-19 virus, to façade lighting, controls, building automation, and electrical components and connectors, the entire built environment value chain is covered for the construction sector.”
“The exhibition is the platform of choice for designers, architects, specifiers, contractors, and project owners or end-users, to source and identify producers and suppliers, as well as a great show window of the latest trends and cutting edge solutions available in the market.”
Ventures ONSITE’s detailed report titled: GCC Construction Market, is available to download on Light Middle East’s website. It further stated that despite the oil price slump and the pandemic in 2020, which led to budget adjustments in many GCC countries, the private sector is expected to play a key role in building construction projects.
Housing, healthcare, infrastructure, hospitality, and education projects are likely to keep the building construction sector busy with a robust pipeline of projects in design and tender stage in addition to active master development schemes.
According to TOPHOTELPROJECTS, in 2021, 155 properties with 44,062 rooms will open their doors across the GCC, and 2022 is likely to follow suit with 149 projects and 52,974rooms in the pipeline.
Light Middle East 2021 will feature leading UAE suppliers and consultants such as Abensal, Cinmar, Creation Gulf, Elettrico Lighting, Ledvance, Lumentek, Scientechnic, and Zeta Lumen; along with top international lighting brands including ACB Iluminacion, Centrsvet, Korner, Ledvance, Perdix, Lumenova, Luz Negra, and Intiled.
It will also return with THINKLIGHT conference featuring more than 30 speakers across eight verticals, certified workshops, and the Light Middle East Lighting Design Recognition Awards.
The two-day conference programme will cover the special focus verticals of Sustainability, Energy Efficiency & Net Zero Buildings; Transport & Infrastructure; Healthcare Lighting; IoT & Intelligent Lighting; Commercial (Retail, Offices, Shopping Malls); REAL talk, REAL people, “RAW Hospitality”; Exterior, Public Realm, Landscape; and Dark Skies: Care for light & value darkness.
More information is available at: www.lightme.net