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Gulf countries continue to invest in transport projects to diversify the region's US$1.4 trillion economy, BNC Network says
Source: Pan Asian Media for BNC Network , Author: Posted by BI-ME staff
Posted: Tue January 2, 2018 1:12 pm

UAE. The combined value of the 1,424 active transport projects in the GCC has exceeded US$392.2 billion (Dh1.39 trillion) in at the end of 2017, according to latest GCC Construction Analytics report issued by BNC Network, the largest and most comprehensive project research and intelligence provider in the Middle East and North Africa (MENA) region.
 
Of these, 139 projects worth US$207.5 billion (Dh761.5 billion) involve the development of the railway sector – in bits and pieces – that will later be interconnected to the GCC railway system and create a region-wide rail network to help accelerate cross-border movement of goods, services and people.
 
However, the highest number of projects – 1,069 – are dedicated to roads and highways sector, with a combined value of US$122.6 billion (Dh450 billion) that will improve and expand the road networks across the region.
 
As many as 100 projects with a combined value of US$37.4 billion (Dh137.25 billion) are in the aviation sector, mostly in aviation infrastructure projects. Saudi Arabia is developing a number of small airports to have them connected to the rest of the country as mobility among the GCC residents are growing, necessitating greater connectivity.

In the UAE, Al Maktoum International Airport also represents a significant portion of these projects.
 
Around 116 marine projects with a combined estimated value of US$24.7 billion (Dh90.6 billion) will also expand the region’s marine transport sector.

The GCC's transport sector constitutes 6 per cent of all active projects in the region and in dollar terms, these projects account for 16 per cent of the total estimated value, according to the report.

The relatively higher spending in the roads and transport infrastructure sector reflects a clear focus on economic diversification of the GCC countries where transport, logistics, trade and tourism will dominate the economic landscape in future.

“Relatively high investment in infrastructure clearly shows that the governments of the GCC countries are planning to reduce dependence on hydrocarbon and make their economies more sustainable by expanding and improving infrastructure that will help cross-border trade, tourism and public mobility that are essential for diversification,” Avin Gidwani, Chief Executive Officer of BNC Network, says.

 “The news of crude oil price bouncing back to the US$65 per barrel level will help boost investor sentiment. Higher oil price means higher spending in infrastructure and if the current price stabilizes, we could see increased investment in roads and transport sector.
 
“Once completed, these projects will change the way people move within the region as well as the way goods are traded and transported from one country to the other.”
 
Transport Projects in the Third Quarter of 2017
In the third quarter of 2017, 15 projects with a combined estimated value of US$2.08 billion (Dh7.63 billion) were announced in the GCC's transport sector.

The number of projects announced in this sector increased by 25 per cent in the third quarter of 2017 as compared to the second quarter of 2017.

Notable projects announced in the third quarter of 2017 in the GCC's transport sector include Expansion of Um Al Hassam Interchange located in Manama, Bahrain, worth US$1.2 billion; Haima to Thumrait Railway Line in Oman worth US$400 million which is part of Oman Mineral Railway Line located in Muscat and Sea Taxi at Abhor located in Jeddah worth US$150 million

As many as 32 projects with a combined estimated value of US$3.7 billion were awarded in the GCC's transport sector in the third quarter of 2017, while 60 projects with a combined estimated value of US$6.64 billion were completed.
 
Transport Projects in November 2017
A total of 11 transport projects with a combined estimated value of US$811.6 million moved to the construction stage from other stages during November 2017. The largest transport project in dollar terms to be awarded in November was Roads and Infrastructure Works for Al Salmi Road worth US$620 million located in Al Salmiya, Kuwait.
 
A total of 32 transport projects with a combined estimated value of US$1.4 billion were completed during November
 
BNC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding US$7.7 trillion (Dh28.3 trillion). It publishes more than 250 project updates that are distributed amongst 73,000 executives and professionals every day.

Box

Top Transport Projects in the GCC

Project Name

Project Value

Country

Um Al Hassam Interchange

US$1.2 billion

Bahrain

Ras Al Khair Maritime Complex

US$800 million

Saudi Arabia

Temporary Passenger Terminal

US$544 million

Qatar

Expansion of Al Bustan Street

US$440 million

Qatar

Haima to Thumrait Railway Line

US$400 million

Oman

Photo Captions:
1. (above)  Avin Gidwani, Chief Executive Officer of BNC Network
2. (inset)    For illustrative purposes only (File photo)

About BNC
BNC, the largest project intelligence provider in the MENA region, tracks 25,324 live construction projects with a value exceeding US$7.7 trillion (Dh28.3 trillion). It publishes more than 250 project updates that are distributed amongst 73,000 executives and professionals every day.

It is used by thousands of business leaders and construction industry professionals around the world to track developments, gain insight on projects and do business in the construction industry. BNC covers construction projects, across all sectors including urban construction, mega developments, transportation, utilities, industrial developments and oil and gas and publishes over 2,000 construction analytics annually based on extensive research and analysis.

 

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