Pinsent Masons survey forecasts ten per cent increase in Gulf construction activity

01 Dec 2010 | 12:00 am |

International law firm Pinsent Masons’ third annual Gulf construction survey has revealed that 40 per cent of contractors surveyed in the region forecast a ten per cent increase in workload in the next year.

The firm’s research also found that a third of those surveyed believe market conditions will improve. This compares favourably to the same time last year, when 82 per cent of respondents reported problems with projects being held up by funding. The research identified power, water and wastewater as the sectors with the most opportunities for growth.

Countries that are delivering the strongest growth (Kuwait, Qatar and Saudi Arabia) were also named as the “most challenging” to operate in. Opportunities in PPP projects seem set to rise - with an increase of six per cent (30 per cent to 36 per cent) in the number of companies who are involved in or anticipate being involved in PPP projects in 2011, since last year’s survey.

Sachin Kerur, head of Pinsent Masons’ UAE office said: “The survey findings suggest that cautious optimism is returning to the construction market in the Gulf, with predictions of an increased work load instilling confidence amongst construction professionals in the region.

“The opportunities in water and waste water in particular are marked – and follow recent statements from water and energy officials claiming that every UAE resident consumes an average of 970 litres of water every day – one of the highest rates of water use in the world, and demand is growing at a rate of ten per cent a year.”

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