Construction Spending Market in the GCC Countries Market 2015-2019
Market outlook of the construction spending market in the GCC countries
Technavio's market research analyst estimates the market for construction spending in GCC to post a strong CAGR of nearly 8% by 2019. Growing investment in transport infrastructure, development of economic cities, and the rising demand for affordable houses are examples of some critical factors that foster growth in this market during the forecast period.
Growth in the transportation sector is the key driver for the growth of this market. Even though the GCC countries have well-developed highways and airports, the recent rise in population is expected to bolster the demand for a better public transit system during the forecast period. Moreover, since trade services in this region are heavily dependent on the connectivity between important trading hubs, the upgradation of the transport system by the government is expected to result in market growth by 2019.
Geographical segmentation of the GCC countries
In this market research report, analysts estimate Qatar to be the largest market segment during the forecast period. Extensive investment in the transport infrastructure and the development of social infrastructure projects like retail malls and hotels are expected to result in this region's impressive market share of more than 45% by 2019.
Competitive landscape and key vendors
This market consists of small and large construction companies and is primarily dominated by players like Al Jaber Engineering and Arabian Bemco. The level of competition in this market is expected to intensify during the forecast period due to the entry of private players in the infrastructure development sector.
Key vendors in this market are -
Al Jaber Engineering
Arabian Bemco, Arabtec construction
Mushrif Trading and Contracting Company
Saudi Bin Ladin Group
Other prominent vendors mentioned in this market study are Ashghal, Bechtel, Consolidated Contractors, El Seif Engineering Contracting, Ramaco Trading and Contracting, and Oman Shapoorji Construction Co.
Growth drivers, challenges, and key vendors: Construction spending
Technavio's market research analyst has estimated upcoming trends, such as the growth of mixed-use developments, to drive market growth during the forecast period. A mixed-use development refers to a self-sustaining building that blends a unique combination of residential, commercial, cultural, institutional, or industrial uses. Advantages like the widespread availability of residential and commercial spaces, play areas, public amenities such as recreational spaces, community halls, hotels, hospitals, and schools are expected to bolster its development during the forecast period. This increase in the development of mixed-use buildings is expected to incite growth in the construction spending market during the forecast period.
This report provides a number of factors contributing to the adoption, limitations, and opportunities of the construction spending market in the GCC countries. It also offers an analysis of each factor and an estimation of the extent to which the factors are likely to impact the overall market growth.
Key questions answered in the report include
What will the market size and the growth rate be in 2019?
What are the key factors driving the construction spending market in the GCC countries?
What are the key market trends impacting the growth of the construction spending market in the GCC countries?
What are the challenges to market growth?
Who are the key vendors in the construction spending market in the GCC countries?
What are the market opportunities and threats faced by the vendors in the construction spending market in the GCC countries?
What are the key outcomes of the five forces analysis of the construction spending market in the GCC countries?
Technavio also offers customization on reports based on specific client requirement.
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Technavio Announces the Publication of its Research Report – Construction Spending Market in GCC Countries 2015-2019
Technavio recognizes the following companies as the key players in the Construction Spending Market in GCC Countries: Al Jaber Engineering, Arabian Bemco, Arabtec construction, HBK Group, Mushrif Trading and Contracting Company and Saudi Bin Ladin Group
Other Prominent Vendors in the market are: Ashghal, Bechtel, Consolidated Contractors, El Seif Engineering Contracting, Ramaco Trading and Contracting, and Oman Shapoorji Construction Co.
Commenting on the report, an analyst from Technavio’s team said: “The use of advanced construction techniques and practices have been witnessed in the industry. Implementation of BIM and prefabricated building construction are two emerging trends in the GCC construction industry.”
According to the report, the increase in tourist arrivals in GCC, is simultaneously increasing the demand for commercial buildings specifically in the retail and hospitality sectors. More than 20 new hotels are expected to open in GCC by the end of 2015 and more than 100 retail projects are presently underway. This is expected to boost the growth of the GCC real estate sector.
Further, the report states that as the scale of the projects have increased so have the complexities associated with each of the projects. Attracting the right talent pool might be a great challenge, because the increased number of construction projects will lead to an increased large-scale demand for skilled labor.
Al Jaber Engineering, Arabian Bemco, Arabtec construction, HBK Group, Mushrif Trading and Contracting Company, Saudi Bin Ladin Group, Ashghal, Bechtel, Consolidated Contractors, El Seif Engineering Contracting, Ramaco Trading and Contracting, and Oman Shapoorji Construction Co.
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