Monday, April 24, 2006

Gulf real estate projects cross $1tr

The real estate projects, planned or currently under development, in the Gulf are worth more than $1 trillion (Dh3.67 trillion), according to a recent survey. The value of more than 1,400 projects increased by more than $250 billion in the first quarter of 2006 and surpassed $1 trillion in the first week of April, according to MEED Projects, an online project tracker.
Being the Gulf’s largest construction market, the UAE has active projects worth almost $300 billion, mostly in Abu Dhabi and Dubai, although major schemes are implemented in the other five emirates. The construction sector in the region is now the biggest globally on a per capita basis, and the Middle East accounts for the second largest share of project finance in the world.

Ayman Razek, general manager of MEED projects, said: "From the statistics we have at our fingertips, the Gulf economic boom will last for at least five more years. The growth seen in Dubai in the last five years is now happening in Abu Dhabi, and across the GCC.""Project values are at an all-time high through a combination of a GCC-wide construction boom, through infrastructure development, energy initiatives and public and private sector initiatives, as well as associated rises in building material costs."

The value of projects in Saudi Arabia has doubled to more than $200 billion in the last 12 months and Kuwait's project market has burgeoned to $211 billion.