Construction output in Saudi Arabia forecasted to grow by 3.8%, according to Asite
New construction report examines key trends set to shape 2020.
Asite has launched a research report into the trends set to impact the construction industry globally in 2020, including the Middle East.
The report also examines the impact of the current COVID-19 pandemic and considers how this will impact the industry in the coming 12 months.
Research was conducted on different regions – namely, the Middle East, United Kingdom, Europe, North America, Asia-Pacific, and India – to examine key trends in those regions and their relatedness.
The snapshot report delves into some of the most innovative insights this year. It aims to provide the construction industry with a clear view of its future and determines what the industry needs to do to move forward, overcome current challenges, and build on the progress taking place.
Nathan Doughty, CEO, Asite, said: “When we began our research, we could not have known how drastically the world would change in such a short time. This change and the impact of the COVID-19 outbreak has impacted our findings and will continue to shape our industry long after the pandemic has passed. Now more than ever, I believe our industry needs to come together and operate as the global industry it is to solve future challenges and build resilience. This report will hopefully mark the beginning of this new chapter.”
The report demonstrates how shared trends and developments across regions might offer a solution to the current crisis. Digital engineering and the establishment of strategic operating models are suggested as key to building resilience and safeguarding the industry.
The report also calls on the industry to recognize their interdependence and develop a strategy that is both regionally engaged and globally responsive.
Key takeaways about the Middle East from the report include:
Pace of industry growth in the Middle East set to accelerate
2020 will mark a pivotal year for the construction industry as the region moves towards breaking the market’s total dependency on oil. The pace of growth in the region is forecasted to accelerate over the next four years, reaching 4.9%. However, this growth will likely be impacted by the COVID-19 pandemic in the short-term with supply-chain restrictions from China.
Construction output forecasted to grow in Saudi Arabia by 3.8%
Saudi Arabia remains the largest regional construction market in the Middle East, and with projects such as Saudi Aramco’s Fadhili Gas Plant which support the Kingdom’s Vision 2030 plan to diversify the economy and reduce domestic oil dependency, the market will continue to grow. However, any projected growth related to tourism infrastructure will likely be curtailed due to COVID-19.
Dubai positioned to be the world’s ‘smartest’ city
The Smart Dubai 2021 strategy has seen the government launch over 100 smart initiatives and more than 1,000 smart services in less than three years. The ambitious roadmap is demonstrative of a mission to position the city at the forefront of innovation; everything from smart transport solutions to free high-speed Wi-Fi will be implemented to help enhance Dubai’s reputation and investment capabilities.
Substantial infrastructure development in Dubai in preparation for Expo 2020
Despite the global pandemic, Dubai will continue to prepare for Expo 2020, adjusting planned preparations as required. Over the coming months, numerous infrastructure projects will be completed to accommodate the needs of the huge 173-day event. Industry data shows that, as of March 2018, the total value of the top 10 active projects linked to Expo 2020 will exceeded AED 120 billion.