A growing number of international construction firms, particularly from China, are lining up to invest in the Gulf region’s trillion-dollar real estate sector, according to Deloitte.
With $2.8 trillion worth of projects planned or ongoing in the Gulf Cooperation Council (GCC) countries, international firms are increasingly eyeing the region’s construction market.
Deloitte said that key Chinese construction industry executives were briefed on the latest developments in the GCC construction industry at a Deloitte consulting meeting in June, where they discussed best practices in construction projects and portfolios in the region.
“There is a growing number of Chinese construction and construction-related companies coming to do business in the Middle East,” said Deloitte Middle East Construction Industry Lead Partner Cynthia Corby.
At the meeting, Andrew Jeffery, managing director for Capital Projects, said Deloitte was seeing a trend of projects in the region involving increased risk and complexity, and this is occurring at a time when, globally, contractors are seeking a “more for less” approach. “This necessitates a rigorous and methodical approach to governance as well as a deep understanding of the individual markets themselves,” he said.