RIYADH – Building sector projects (residential, commercial, hospitality and retail) will likely increase by 13 percent to $65.5 billion by the end of 2012, from over $57.8 billion awarded to contractors in 2011, according to new research by Ventures ME commissioned by dmg :: events, the organizing team behind the INDEX International Design Exhibition. In 2011, construction projects to the value of $46.52 billion were completed in the GCC, a figure expected to increase dramatically, up 71 per cent to $79.75 billion in 2012. The research revealed that the United Arab Emirates continues to garner the largest share of the total GCC building construction market – accounting for almost half (48 percent), with Saudi Arabia taking a further third (33 percent) followed by Kuwait (8 percent), Qatar (6 percent), Oman (3 percent) and Bahrain (2 percent). The value of commercial real estate projects is set to almost double in 2012 to $15.3 billion from $7.7 billion in 2011 as the GCC continues to be a leading luxury destination for retailers, with four of the six GCC countries ranking among the top 20 global retail destinations, according to the Global Retail Development Index (GRDI). The hotel and hospitality sector will also witness enormous growth throughout 2012 with project values set to treble to $7.3 billion, up from $2.7 billion in 2011. This growth is a direct result of the increased demand for hotel space in the GCC where room revenues are set to reach $22 billion in 2012 and expected to increase to $27 billion by 2015. "One of the findings from the report is that GCC countries spend more money on average on interior contracting and fit-outs elements of a construction project than their counterparts in the US, Europe and Japan," said Naomi Barton, INDEX Event Director. "The hotel and hospitality sector is the biggest segment spender, with over 22.5 percent of total project cost allocated to interior contracting and fit-out projects - more than any other sector within the GCC's building construction industry. INDEX International Design Exhibition 2012 will respond to this huge market growth and cater to the demand of all construction projects." The 22nd annual edition of INDEX, themed "Where Inspiration Thrives", will run on Sept. 24-27 at the Dubai World Trade Centre, Dubai. – SG
