Despite the worst global recession, the GCC has over $1.3 trillion worth of announced and un-awarded projects and a further $1.4 trillion worth of schemes in the wider Middle East, according to a report.

The analysis also indicates an uncertain outlook for the UAE construction sector with more than $425 billion worth of construction and infrastructure projects put on hold or cancelled since the start of the market downturn in the fourth quarter of 2008.

Of these, just under $300 billion are located in the emirate, compared to its neighbour Abu Dhabi that has seen close to $49 billion worth of projects postponed or cancelled, said the report citing latest data from Meed Projects, the online project tracking database.

However, Dubai still has over $216 billion worth of infrastructure projects under construction and nearly $270 billion worth of projects in the pipeline or under bid.

In its forecasts for the future, the report nevertheless paints a bright picture for the region as a whole.

The most effective way to tap into these opportunities will be the primary focus of delegates attending Meed’s Arabian World Construction Summit (AWCS) that will be held from 24 May at the Abu Dhabi National Exhibition Centre.

The event is part of the Arabian Construction Week that will take place from 24-26 May, incorporating four dedicated vertical trade exhibitions – Future Build, Civil Engineering, Building Machinery, and the Green Building Expos.

Of particular interest at the event is Saudi Arabia, which has overtaken the UAE to become the largest project market in the region with more than $435 billion worth of projects planned over the next five years, said a senior official.

Edward James, head of Meed Insight, the company’s research and analysis arm, said: 'It has been close to two years since the UAE real estate industry sector began to crash, but it is only now that a full picture has emerged of its impact on the construction industry.'

'It is clear that there has been a considerable slowdown in contracting activity in the UAE over the past 18 months. Unsurprisingly, the contractors that had previously focused on Dubai as the main source of future business are now trying to diversify away from the UAE to look at new geographies for future project opportunities.

“Saudi Arabia represents the most obvious opportunity for contractors to focus on thanks to its emphasis on infrastructure, education and utilities fuelled by high oil revenues and strong demographic growth. However, companies looking to enter the market need to be aware that it remains dominated by local contractors, and that there are unlikely to be any quick wins. It may be that partnering and joint ventures are the most likely route to success.”

The leading figures who will take centre-stage at the summit include Fatima Obaid Al Jaber, COO of Al Jaber Group; Tahir Sharif, president of buildingSMART ME; Varun Khosla, managing director and CEO of Dynamic Staffing Services; Scott Hutton, senior lawyer, Habib Al Mulla & Company; Richard Carey-Brown, vice-president, Parsons Mena; Mustafa Sani Sener, president and CEO of TAV Group and Michael Morgan, regional manager – Middle East, Zurich Global Energy.

According to data from Meed Projects, the region is confident of other promising growth factors particularly with oil and gas performing strongly.

In 2009, more than $55 billion worth of hydrocarbons projects were awarded, double the amount of work signed in the previous two years combined. This year is expected to be just as high, if not higher than last, with more than $11 billion worth of contracts already awarded.

James said the utilities and infrastructure sector are more of a function of demographic growth than the real estate sector, which had become primarily speculative as the bubble built up.

'Along with oil and gas capital investment, the two sectors will continue to grow because governments have little choice but to improve transportation links and power and water provision as the population of the region rises,' he observed.

“At the same time, the long-term growth in energy demand will mean that national oil companies will need to continue investing in upstream and downstream projects. For contractors looking for new income streams, it would be worth building up expertise outside the construction sector to ensure they can compete for these different types of project,” he added.-TradeArabia News Service