Numbers show that UAE has been hardest hit of all, with 566 stalled schemes, but still has the most construction activity in the region
The extent of projects on hold throughout the Middle East has been revealed in a new report. The report shows that 566 projects in the UAE, 106 projects in Saudi Arabia and 54 in Bahrain are on hold or cancelled. It also reveals that Kuwait’s construction projects are worth more money than anywhere else in the Arabian Gulf after the UAE, which came top, and Saudi Arabia.
The report from research firm Proleads shows that the UAE has been hit hardest of all countries in the region by the slowdown but it said the country retains an “extraordinary level of construction activity” with projects there totalling about $900bn (£545bn).
The Proleads study of UAE projects found:
- In the commercial sector, 147 projects are on hold and 340 projects are under construction or being bid on
- In hospitality, 288 projects are in construction or out to tender, with 118 cancelled or on hold
- In residential, 495 projects are in construction or out to tender, with 217 cancelled or on hold
- In retail, 249 projects are in construction or out to tender, with 84 on hold and no cancellations
Across the rest of the Arabian Gulf, the research found that in the four sectors studied - commercial, hospitality, residential and retail - the impact of the economic downturn has been less marked:
- Saudi Arabia’s construction projects total more than $387bn. Of these, 442 are in construction or out to tender and 106 are cancelled or on hold
- In Kuwait, projects total over $114bn. Of these, 90 are in construction or out to tender with 18 cancelled or on hold
- Qatar has projects worth over $42bn, of which 124 are in construction or out to tender and seven cancelled or on hold
- Oman has projects worth over $38bn, with 95 in construction or out to tender, eight on hold and no cancellations.
- Bahrain’s projects total over $36bn, 148 are in construction or out to tender and 54 cancelled or on hold.
- Proleads said the research showed “the region continues to be a global hotspot for real estate projects”.
The study was carried out for the organisers of next month’s Cityscape Dubai property exhibition by Proleads and forms part of the “Cityscape Intelligence Focus On Dubai Report.” It recorded projects over $10m in value in mid September 2009.
Don't miss the Global Infrastructure Forum