Middle East
MIDDLE EAST – The Middle East countries will see 2.7% to 4.4% GDP growth in the 2nd Q of 2024:
The Middle East construction market is forecast to be in the $1.40 to $1.45 billion range in 2024.
The Middle East region is experiencing significant growth in Saudi Arabia, while other Middle East countries are struggling with the fallout of the Israel / Hamas conflict.
Saudi Arabia is running at a blistering pace towards its Vision 2030, the kingdom is experiencing an amazing construction boom. Every day we read of new mega projects being planned and breaking ground in most regions of the kingdom.
Saudi Arabia has recently announced the plans to construct more than 20 mega capital projects all across the country that will significantly transform the country in the next 5 years. Some of these projects include Neom a vast new high-tech city, the Mukaab a 400-meter-tall office tower that will be the tallest structure in the Middle-East, the King Salman Energy Park, Oxagon a new floating city in the Red Sea, close to the Suez Canal, the new Riyadh Metro, one of the largest public transport capital projects in the world and the new Red Sea International Airport. These major capital projects and the ongoing infrastructure, mining and Oil & Gas construction sectors promises to make Saudi Arabia a very active location for construction in 2024 and beyond. The capital projects are estimated to cost between $750 and $900 billion.
These vast and bold concepts to construct these mega projects are focused at restructuring the country into a “world class” global economic, commercial and tourist destination.
Hamas’s attack on Israel and Israel’s response against Gaza have reversed the peace process in the Middle East, this conflict could become a wider regional war between the USA and Iran.
Saudi Arabia’s construction sector is by far the largest in the Middle East, over the largest 5 years Saudi Arabia’s construction sector has grown by as much as 20%, the size of the Saudi Arabian construction market in 2024 is estimated to be between $85 and $95 billion.
Recently, a new community located in Jeddah was announced with more than 15,000 houses and supporting facilities called Alarous. There are also other projects in the pipeline to construct more than 200,000 new housing units across the KSA by 2030.
A new ski resort named Trojena, has recently been announced valued at more than $200 million
The new Red Sea resort area will contain more than 40 resort / hotels providing more than 10,000 luxury suites / rooms and more than 2,000 villas and luxury housing units together with supporting amenities. Another similar facility located at Shura Island that contains a number of similar facilities is under construction.
All of the 2024 future projected Middle East construction growth, particularly in the oil / refinery, energy petro-chemical / industrial and commercial construction is fueled by $80 to $100 a barrel of crude oil.
Dubai continues to be an active construction market, with numerous infrastructure and commercial projects currently under construction or in the development pipeline.
The rising price & demand for oil could turn out to be a great boost for some Middle East countries that could benefit future Oil & Gas CAPEX construction projects. Construction is projected to steadily increase Qatar, UAE / Dubai, Bahrain and Kuwait over the upcoming years fueled for the most part by oil and gas revenues.
