Gulf expansion into overdrive

Not a usual topic for a posting today, but the numbers involved are quite impressive and reflect another side to the current world economic concerns.  With news today of a very slight improvement in the UK construction industry, after two quarters of decline interesting news and figures emerge from the Gulf with MoveHut (www.movehut.co.uk) reporting on the prospects for the construction industry in the UAE.

Led by the hotel and commercial sectors, the value of projects completing this year is expected to increase over 70% to £51.3 billion.  The Gulf Cooperation Council, the political and economic union of states surrounding the Persian Gulf and Arabian peninsular, awarded construction contacts worth over £37 billion in 2011 across the commercial, retail, hospitality, and residential sectors which, with the 2012 contracts, will see building activity progress into 2013.

A significant aspect of these figures is down to the increased demand for hotel space in the GCC.  Room revenues are predicted to reach $22 billion (£14 billion) this year and are predicted to reach $27 billion (£17 billion) by 2015, according to Global Retail Development Index.  This increase in demand is due to the positive growth estimates for the GCC, based on the region’s strong economic growth and political stability. Forecasts for GCC’s economic growth have projected to 4.3%, up from 3.4%.

In comparison, the value of the Uk’s construction, across all sectors, including housebuilding (apparently there are some) is £90 billion, but the important difference is the our industry is at best flatlining, at worst continuing to decline.