· New report offers insights into top 30 projects, worth a combined US$340bn
· King Abdullah Renewable Energy City top of the list at US$100bn
· Main contractors still to be appointed for ten of the new projects
Megaprojects
worth hundreds of billions of dollars are creating enormous
opportunities for contractors, sub-contractors, suppliers, and
manufacturers in the Middle East.
This
is one of the suggestions of a new report published by Ventures Onsite,
which details the top 30 projects set for construction in the region
over the next two decades.
The
report entitled ‘GCC Major Building Projects’ also reveals that a third
of these major developments have still not appointed a main contractor.
“Most
projects without contractors are scheduled to start either at the end
of the year or the start of next year. So the nature of construction
means they are likely to be close to making a decision,” said Andy
White, Vice President of dmg events and The Big 5 2015.
“Two
of the projects in Oman will not begin until 2017, but the demand being
generated for building materials and equipment from other projects
means the next few months represent an ideal window of opportunity for
contractors, suppliers, and manufacturers to secure contracts and source
products,” he added.
Mohammed
Bin Rashid City, a ten-year multibillion dollar project in Dubai, is
one of the most expensive projects under construction in the report. The
mixed-use project is set to become home to Mall of the World, the
world’s largest retail destination, and a family leisure entertainment
complex that is being built in partnership with Universal Studios. If
all goes to plan it will also host the biggest swimming pool in the
world, at 40 acres.
However,
with a projected cost of over US$100 billion, the most expensive
project in the report is the King Abdullah City of Atomic and Renewable
Energy in Saudi Arabia. This state-of-the-art sustainable city forms an
important part of a region-wide focus on green construction and
sustainability and comes with ambitious plans to install 7GW of nuclear
power and 41 GW of solar capacity by 2040.
It
is also expected to develop 20 gigwatts worth of geothermal and wind
power, and has established plans to construct 16 nuclear power plants
with 17 gigawatts of capacity over the next 20 years, according to the
World Nuclear Association, a trade group.
Construction of the city is scheduled to start early next year once a main contractor has been appointed, the report said.
Meanwhile,
the complexity and size of construction projects in the Middle East
suggest contractors may need to adapt their business models as the
market shifts aggressively towards government-sponsored infrastructure
projects.
“The
GCC has established a reputation for creating some of the most iconic
skylines in the world. The projects of the future are likely to be
equally impressive, but a change is taking place in the region and the
next wave of construction will be infrastructure. This process has
already begun and promises to transform the region,” he said.
White
said the fact the region’s top megaprojects are scheduled for
completion between 2016 and the mid-2030’s reflects a long-term
perspective towards the built environment that is being guided by
governments’ desire to improve quality of life in the region.