Oil-rich Middle Eastern countries are pinning their hopes on oil prices remaining in the $60 a barrel range. The Middle East’s EPC sector is forecast to expand at a faster rate than any other region in the world at between 3.5% and 5.5% in the 1st half of 2018.
The Saudi Arabian Government is trying to reduce the country’s dependency on its oil industry and its oil exports by investing in non-oil related businesses, look for this trend to continue in 2018 and beyond, in the meantime with oil trading above $60 a barrel look for continued substantial CAPEX expenditures on oil related projects in 2018 and beyond.
Qatar will carry on being one of the world’s fastest growing economies and construction markets even with the economic related boycott from its neighbors. Qatar is affluent with its enormous offshore gas fields. Qatar is currently focused on its ongoing construction / infrastructure work related to the 2022 World Cup.
Abu Dhabi is the most expensive Gulf Cooperative Council country for construction services. Abu Dhabi is forecast to spend more than $25 billion on oil / gas, infrastructure and commercial construction projects in the next five years. Some Middle East / North African countries such as Egypt, Libya, Syria, Jordan and Algeria continue to endure political and economic stagnation. Activity is down perhaps 5% to 10% from 2 to 3 years ago, but the outlook for construction work still remains decent in the (GCC). Israel’s economy and construction market continue positive as we move into the 1st half of 2018. There are plenty of energy and non-oil related construction projects and opportunities that are still to be had.