THE Middle East is set to experience unparalleled construction activity over the next two decades but must be prepared for the complex infrastructure challenges that come with major programme delivery, says EC Harris in its latest study: ‘Middle East major construction programmes – mitigating the risk’.
The new report by the global built asset consultancy found that across the GCC, in excess of 117 major programmes, each worth more than $1 billion are planned for completion by 2030. These projects are expected to cost more than $1 trillion in total.
However, the completion of these plans come with a number of risks that could result in programme failure for some, it warned. The report looked at the outlook for the construction sector between 2014 and 2019 in the UAE, Qatar, Saudi Arabia, Oman, Kuwait and Iraq.
Alistair Kirk, head of infrastructure, industry and utilities, Middle East at EC Harris, said: “The Middle East is experiencing unparalleled economic and social development due to the large volume of mega projects planned and under way. These programmes are at the forefront of these enormous infrastructure developments which will bring diversification, foreign and domestic investment and job creation on a large scale.
“However, with demand currently outstripping supply for human capital and material resources, there is a risk of inflationary rises to secure resources in a very competitive and intense market. But with joined-up, collective thinking, governments, developers and contractors can ensure all major programmes in the region can be delivered on time, on budget and to the required quality.”
Each country has its own resource challenges but throughout the GCC, contractors and the supply chain will need to source and process visa arrangements to accommodate 1.2 million construction workers during the peak development period of 2014 to 2019 alone, said the report.
Another consideration outlined in the report is to develop training and skills academies to support the growth in labour and attract the best expats and migrant labour.
