GCC contracts record 11.4% growth in 2009

In an apparent indication of signs of recovery in the global economy, GCC registered 11.4 per cent rise in the construction projects. GCC secured construction contracts worth $142.4 billion despite a very challenging period of economic slowdown in 2009.

The quarter fourth itself recorded highest number of projects worth $61.6 billion reporting an increase of 63 per cent as per data released by Global Investment House. The highest number of projects was awarded in the months of December and July 2009. The average contracts that stood at $10.6 billion in 2008 surged to $11.8 billion in 2009.

The report says, "Most of the UAE cement companies are focusing more on these measures and we expect if the prices and utilization rates continue to decline, more and more cement manufacturers would be focusing on cost-control measures."

However, the report cautioned against mismatch between demand and supply in the market that can hit prices. The situation can be better gauged from the condition of Saudi Arabia, having the heftiest size of projects in 2009 and around 8.5 per cent on hold. Hopes of further decline in export due to capacity expansions in neighboring countries and tough competition may impact the projects.