At the start of 2023, reviewing the construction activity in the Middle East’s real estate sector indicated more than $900 billion of active projects. This total excludes mega projects, such as Neom, Al Faisaliah City, Madinat Al Hareer, and others. If we change the parameters to include mega projects, the total value of active projects exceeds $2 trillion! For the following analysis, we will exclude mega projects.
In 2022, construction started on $51 billion worth of real estate projects across the Middle East. Considering the project’s total value (budget), 80% of the projects were in Saudi Arabia and 15% in the UAE. By volume of projects, 45% were in Saudi Arabia and 44% in the UAE. The difference between value and volume indicates the size (or budget) of projects in Saudi Arabia is significantly larger than in the UAE.
Looking forward to 2023, ABiQ expects the main contract awards in the Middle East real estate sector to reach $75 billion. An increase of 50% year-on-year. During 2023, Saudi Arabia will see 60% of the anticipated main contract awards.
In 2023, for all sectors, including oil, gas, transport, real estate, etc., $140 billion should be in the Middle East. Of the expected $140 billion contract awards, 45% is in Saudi Arabia. The UAE is in second place with 21% of the total expected awards.
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