Heavy demand for materials and human resource shortages are likely to create project delays and cost overruns for GCC countries in the next two years, says new report.
According to the Ventures Onsite GCC Construction Industry – Trends and Challenges for 2015, GCC population is estimated to grow from 35 million to 60.2 million by 2050, which is likely to stimulate growth in construction activity in the buildings and infrastructure sectors, especially in housing, education, healthcare, and infrastructure to support the communities.
The report, produced for The Big 5 Dubai Construction Exhibition on November 23-26, says that airports in the GCC are also expected to expand massively by 2020 due to increasing number of passengers and cargo traffic, driven by strong growth in tourism.
Because of increasing population growth, GCC governments are estimated to spend a total of $90 billion on building schools and universities as they form a top priority in 2015.
Housing will take centre stage in the next two years, with Saudi Arabia, the UAE, Kuwait and Qatar focusing on developing more housing units for the next decade.
Saudi already announced a $66 billion affordable house-building programme which is likely to provide major business opportunities for construction companies in the coming years.
The UAE is set to focus on affordable housing in 2015 while Kuwait is planning the construction of 45,000 housing units as it concentrates on strengthening national infrastructure.
Gulf member states are also pressing ahead with plans to develop an integrated railway network between Oman and Kuwait as start and end destination points.
While education, infrastructure, healthcare and residential projects form a top priority for the GCC governments, shortages in labour and labour policy issues continue to constitute a major challenge.
These challenges are likely to create project delays and cost overruns of which many GCC governments are working towards mitigating.
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