New research by GlobalData’s MEED has shown that the commercial value of construction contracts issued in the Gulf Cooperation Council (GCC) fell by more than 50% in the first eight months of 2020 compared to the same period in 2019.
Neha Bhatia, Construction Editor of GlobalData’s MEED, comments: “New work opportunities have significantly dried up for the GCC's construction sector since last year, and regional contractors remain uncertain about their prospects for the months ahead. However, some major projects have proved impervious to the disruption.”
Bid evaluation is under way for several big-ticket projects that were tendered earlier this year, with contract awards imminent for some of these schemes. The main construction contract for Dubai’s Elan townhouses project is expected to be awarded in November, while bid evaluation is underway for the contract to build the US$680 million Guggenheim Abu Dhabi museum. Bids are also being evaluated for the US$533 million Al-Faisaliah Mall hotel in Riyadh.
Bhatia adds: “These projects, as well as the new tenders expected in the fourth quarter of 2020, should provide a degree of optimism to regional companies that have struggled with a slow and steady decline in activity – punctuated by economic shocks such as COVID-19 – over the past 18 months.”
“Until then, contractors in the GCC must continue to play the waiting game to tide over this dry spell.”
Read the article online at: https://www.worldcement.com/asia-pacific-rim/29092020/bid-evaluation-under-way-in-gccs-construction-sector-to-provide-optimism-to-struggling-regional-companies-says-globaldatas-meed/
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