GCC construction and contracting sector to grow at 35pc by 2015

June 20, 2014 - 11:20:58 am

DAMMAM: The construction and contracting sector in the six Arab states of the Gulf (GCC) will grow at a rate of up to 35 percent until 2015 spurred by generous government spending on infrastructure, according to regional forecasts.

The positive outlook for the Gulf construction sector is based on a projected growth rate of 5 to 6  percent for the Gross Domestic Product (GDP) to reach $3.6 trillion by 2016, compared to $2.4 trillion in 2012, showed a recent report by the Dammam-based Federation of GCC Chambers of Commerce and Industry, WAM reported.

The value of the Gulf region's infrastructure and services projects in the next five years is expected to reach US$800 billion, due to fast population growth rates and infrastructure sector growth.

The government sector in GCC countries will remain the driver of the region's construction and contracting sector as governments own more than 50 percent of the projects, noted the report.(QNA)