Research by Timetric, which published the report ‘Global Construction Outlook 2020’, suggests that construction activity in emerging markets is expected to account for 52.8% of global output in 2015, rising to 56% by 2020. Within the emerging markets, growth is forecast to be particularly pronounced in the Middle East.
Timetric has also put together a list of the countries that it predicts will experience the fastest rate of construction growth between 2016 and 2020.
- Qatar: construction activity growth has been boosted by massive public investment in infrastructure projects. This is expected to continue over the next five years ahead of events such as the 2022 FIFA World Cup and the National Vision 2030.
- Saudi Arabia: like other countries with economies heavily focused on oil, such as Qatar, Saudi Arabia is attempting to diversify its economy. This includes investment in buildings and infrastructure. The country’s strong fiscal position is expected to shield public investment plans from the potential threat posed by the recent drop in oil prices.
- UAE: the United Arab Emirates’ position as a leading centre for tourism and business will mean that it is likely to continue to attract investment in the commercial buildings sector. Major infrastructure projects, such as the expansion of the Dubai metro, plans for an Abu Dhabi metro and light-rail network and preparations for EXPO 2020 in Dubai, will also drive construction growth.
- Colombia: the construction industry has been growing at an average yearly rate of 9.5% between 2011 and 2015, making Colombia the fastest growing construction sector outside of the Middle East. In addition to a booming property market, government spending on infrastructure and the encouragement of private investment under PPPs will add to this growth trend.
- Vietnam: the construction industry is expected to experience an annual average growth rate of 6.4% in real terms between 2016 and 2020, aided by increased foreign investment and increased economic momentum. Although the country’s construction sector has begun to recover following a decline in 2011 and the collapse of its property market, according to Timetric, the dominance of the state sector over the private sector is likely to prevent a rapid recovery.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/africa-middle-east/12022015/timetric-fastest-growing-construction-markets-2016-2020-327/