GCC construction market to remain slow in 2017

Industry leaders speaking at the CW Oman Awards 2017 in Muscat this week believe that the GCC construction market will remain slow this year, with firms continuing to struggle with liquidity and maintaining strong project pipelines.

David Hutton, project director at AECOM, said: “The market is no more challenging than usual, but it is just a different type of challenge. Oil prices are one thing, but it’s also about general financing.

“The market is changing, but the sector can expect a turn around by the end of the year,” he added.

Riad Nashif, executive vice president, Middle East and managing director of the UAE and Oman markets at AECOM, agreed: “I think [the market] will remain slow, but slow is relative.”

“Comparing the market to how it was in 2007 or even to other parts of the world, this [region] is not slow.

“It goes back to what consultants and professional technical service providers can offer by way of value and value propositions to clients, so therefore business like us need to be innovative and think outside the box,” said Nashif.

Senior officials also shared insight on the Omani market, describing the current state of the sultanate’s construction sector as “challenging” and “difficult” going into 2018.

Hutton added: “The [Oman Construction market] will remain slow but will pick up near the end of the year. It’s competitive and challenging.”