MIDDLE EAST (The Middle East countries will see 2.7% to 3.6% GDP growth in the 4th Q of 2022):
The rising price and demand for oil could turn out to be a great boost for some Middle East countries that could benefit future Oil and Gas CAPEX construction projects. Construction is projected to steadily increase in Qatar, UAE/Dubai, Bahrain, and Kuwait over the upcoming years fueled for the most part by oil and gas revenues.
The Saudi Arabia construction sector is predicted to flourish in the next 3 to 9 months after a challenging couple of years. Saudi Arabia is forecast to spend between $180 million and $200 million on all categories of construction in 2023. All of the 2023 future projected Middle East construction growth, particularly in the oil/refinery, energy petro-chemical/industrial, and commercial construction is fueled by $100 to $125 a barrel of crude oil.
The Vision 2030 initiative is a Saudi Government’s program to reduce Saudi Arabia’s dependence on oil. Look for billions of dollars to be expended on new infrastructure, energy, transportation, hotels, shopping malls, tourist resorts, new housing/villas, and commercial/industrial construction facilities in the next couple of years.
Higher oil prices will sustain economic growth and construction activity in Saudi Arabia for at least the next couple of years. Saudi Arabia has more than 70 new hotel/conference center projects in the pipeline in 2023.