Construction World - Gulf Edition
| January 2008
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Editor’s
Desk
THE NEW ‘DEAR’ YEAR
The value of active construction projects in the GCC has
already exceeded $ 1 trillion. Of this, Saudi Arabia accounts
for more than $ 200 bn, Kuwait over $ 211 bn, and the UAE
above $ 221 bn. Another report published by Dubai-based research
firm Proleads puts the total value of 2,837 real-estate projects,
planned or already under development in the GCC region, at
about $ 2.4 tn.
The boom will drive the UAE’s steel demand from 5 mn
tonne in 2007 to 10 mn tonne in 2010. The demand for steel
in the Middle East is growing at the rate of nine per cent
per year. Cement demand in the UAE has risen from 7 mn tonne
in 2000 to 12 mn tonne in 2006, while the price of cement
almost doubled between 2003 and 2005, according to figures
from the Emirates Industrial Bank. Total GCC cement production
is expected to exceed 100 mn tonne a year by 2010. With prices
soaring, the top 10 cement companies in the Gulf region are
expected to post strong fourth-quarter results after a positive
first nine months due to rising demand from the region’s
building boom. Earlier, Lafarge, the world’s largest
cement maker, bought Egypt’s Orascom Construction Industries
Cement group for 8.8 bn euros. The purchase will boost Lafarge’s
access to the oil-fed construction boom in the Gulf region
and the fast growth offered by emerging market economies.
This is a huge vote of confidence for the region and sends
out a strong message that multinationals are confident in
the sustainability of regional consumption growth and that
more multinational players may look to invest in the region.
Your favourite magazine too is gearing up to meet the need
of its growing popularity by adding better quality editorial,
pictures, design, number of copies, participation in more
number of events and holding its awards function in 2008.
Construction activity will be dearer in the New Year, as
all building material prices are likely to go for an upward
revision soon. The price hike would be driven by an increase
in the input prices and the unabated growth of demand. It’s
the New Year dear!
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