The construction industry is one of the most
active sectors of the UAE economy. The construction machinery
sector is one of the up-and-coming industries in the United Arab Emirates
(UAE). About 30,000, or 24% of the world's 125,000 construction cranes, are
currently operating in Dubai, according to the organizers of the Conmex
construction machinery exhibition. Demand for construction related machinery,
equipment and vehicles is expected to continue rising in the Middle East,
especially in the UAE, due to the continuing construction and real estate boom.
Although the concentration of construction activities in the UAE is in Dubai
and Abu Dhabi, the other emirates are not far behind. As of last April 2006,
there were almost US$300 billion worth of projects underway in the UAE,
according to a recently published report from the Ministry of Economy &
Planning.
Coming to Lebanon, the massive destruction caused by the July
2006 war did not deter the people of Lebanon or the region from loving Lebanon
even more. If anything, efforts were redoubled to make sure the reconstruction
process begun at the earliest possible time, bringing to life the saying, “when
the going gets tough, the tough gets going”. Even before the war, Lebanon was
in the midst of a massive reconstruction and infrastructure modernization
drive, which began in 1994. The construction market in Lebanon is thriving and
on the rise with foreign investment expected to double to over US$3 billion.
The international community and Arab countries have pledged billions to rebuild
Lebanon.
The construction activity in Syria is booming as many projects
are coming up in the sector. To attract foreign capital in the real estate
sector the government is preparing a draft law. In a first such move, the
Syrian government gave permission to the Sharjah-based Tiger Group for the
construction of the Damascus World Trade Centre, to be built at a cost of
US$120 million. Among the other upcoming projects, Dubai-based developer Emaar
Properties and offshore group Investment Group Overseas (IGO) are investing
US$0.5 billion in a residential, commercial and retail development called
Eighth Gate in the Syrian capital Damascus. Apart from this, Syria has given an
initial approval for a consortium of Syrian, Kuwaiti, and Saudi Investors to
launch projects valued at US$15 billion in the region of Jabal al- Sheikh.
In Jordan, real estate development continues to move on apace
with both local and foreign firms revealing major projects. The Amman Stock
Exchange listed Taameer is to launch a new city south of the capital, while
Kuwait's Bayan Holding Company, like several other major property developers,
has its eye set on the Dead Sea. The Jordanian Company for Real Estate,
otherwise known as Taameer, signed a deal with the Housing and Urban
Development Corporation to develop the US$900 million Al Jiza Residential City
37 kilometers south of Amman, which will provide around 16,000 residential
units as well as offices and retail outlets. While the Al Jiza Residential City
has somewhat proletarian ambitions, the Bayan Holding Company, a Kuwaiti
private shareholding firm, has its plans to build the US$600 million Royal
Jordan Spa on the banks of the Dead Sea, which will be run by Singapore's
luxury hotel operator, the Banyan Tree.
Looking at the North African district, one can see that there’s some action
rising there. The major catalyst behind the huge growth in Morocco´s
tourist industry and the enormous overseas investment into the construction of
stunning new luxury property developments is the massive national development
plan, Vision 2010, devised by King Mohammed VI in conjunction with the UAE. The
Vision 2010 initiative has ear-marked 6 areas or resorts for major development,
and these will be the locations of most of the new property developments in the
near future. Morocco is attracting significant investment from GCC countries
with Sama Dubai, Emaar, Qatari Diar, Gulf Finance House, Reem Investments and
Sorouh at the forefront.
Tunisia has seen a growth rate of a healthy annual 3% in real
estate over the past decade, and this trend looks likely to continue. Tunisia's
construction industry picked up pace in 2007 following a slowdown in annual
growth to an estimated 3.5% in 2005. Supervised by the Ministry of Equipment,
Housing and Land Development, the Tunisian construction sector as a whole is
seeing an increasing level of private involvement, particularly from Gulf-based
companies.
The international significance of the MENA region continues to grow as its
importance to the global construction industry, often facing saturation in
their traditional markets, is expanding dramatically. The level of construction
across the Middle East is showing no signs of slowing down, at least not over
the short-term future.
Sourced & Compiled
from ACW’s 2006-2007
Archive Global Investment House
World Bank
US Commercial Service
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