The post Truck&Fleet ME – December 2022 appeared first on Middle East Construction News.

Source: ME Construction News

According to global property expert CBRE, Dubai’s residential market reached record activity levels in November, with its total transaction volumes hitting 10,505 – up 60% over last year – mainly backed by a sharp rise in the off-plan and secondary market transactions.

In the year to date to November 2022, a total of 81,919 residential transactions have been recorded, overtaking even the record highs registered in 2009 over the same period, stated CBRE in its Dubai Residential Market Snapshot – December 2022.

In the 12 months to November 2022, average prices increased by 9.5%. Over this period, average apartment and villa prices increased by 9.0% and 12.7%, respectively, it added.

According to CBRE, Dubai’s average apartment prices stood at AED1,161 per sq ft, while average villa prices stood at AED1,374 per sq ft.

These average rates for apartments and villas remain below the highs recorded in 2014 by 22.0% and 4.9%, respectively, it stated.

In early December 2022, Knight Frank said that Dubai’s prime residences are set to lead global price rises.

Taimur Khan, the Head of Research (MENA), said: “Activity levels in Dubai’s residential market have reached record levels in the year-to-date to November with total transactions volume reaching 81,919, surpassing record highs of full year 2009, when transaction numbers totaled 81,182.This strong level of activity has continued to support increases in average prices, which for apartments and villas have risen by 9.0% and 12.7% in the 12 months to November 2022 respectively.

“However, we are seeing the rate of average price growth slowing, particularly in the villa market, a trend that we expect to see repeated in the apartment market shortly. That being said, certain prime markets will continue to record strong growth rates.”

According to Taimur, in the apartment segment, Jumeirah registered the highest sales rate per sq. ft. at AED2,310, while in the villa segment of the market, Palm Jumeirah clocked the highest sales rate per sq. ft. at AED3,802.

The post Dubai’s residential transactions reach record high appeared first on Middle East Construction News.

Source: ME Construction News

His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, has inaugurated Khalifa Port’s expansion – a major development project with a total investment of US$1.08 billion.

As part of the expansion, which includes the development of the port’s South Quay, Khalifa Port Logistics, and Abu Dhabi Terminals at a total investment of US$1.08 billion, Khalifa Port has grown from 2.43 square kilometres to 8.63 square kilometres, while its quay wall has been significantly extended from 2.3 kilometres to 12.5 kilometres.

It now provides 21 berths and offers a range of bespoke services for key strategic industries, positioning it among the global elite of deep-water ports, with an estimated value of US$5.55 billion.

The programme is set to make a major contribution to AD Port Group’s goal of increasing handling capacity at Khalifa Port by 2030 to 15 million TEUs per year, and general cargo handling capacity to 25 million tonnes.

His Highness was briefed by His Excellency Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, and Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO of AD Ports Group, on the key milestones of Khalifa Port expansion projects since its opening ten years ago, and reviewed future plans for the leading port in the region.

He also toured the new, expanded facilities and logistics available to serve import and export operations, a statement said.

His Highness said: “Khalifa Port Expansion is a major national project that is considered an important addition to the UAE’s ports and logistic services and will further enhance the UAE’s position in the global trade.

“Khalifa Port, along other national ports, are important cornerstones to the development and diversification of the national economy,” he added.

The inauguration ceremony was attended by His Highness Sheikh Khaled bin Mohamed bin Zayed, member of the Executive Council and Chairman of Abu Dhabi Executive Office, His Excellency Sheikh Mohammed bin Hamad bin Tahnoon Al Nahyan, Advisor of Special Affairs at the Presidential Court, His Excellency Dr Sultan bin Ahmed Al Jaber, Minister of Industry and Advanced Technology, His Excellency Mohammed Ali Al Shorafa, Chairman of the Abu Dhabi Department of Economic Development, and a number of senior officials.

The official inauguration of the expansion programme by the UAE President marks another major milestone in a year that has seen AD Ports Group list on the Abu Dhabi Securities Market (ADX), open new trade corridors, complete a series of major acquisitions, rapidly transform its business and portfolio of services, and build strong relations with existing and emerging trade partners for the UAE.

Officially inaugurated by the late Sheikh Khalifa on 12/12/12, Khalifa Port was developed from a stretch of reclaimed land four kilometres out to sea and is now a major hub serving more than 25 container shipping lines with direct links to more than 70 international destinations.

In September, AD Ports Group installed the first 90t block for the quay wall of the new CMA Terminals Khalifa Port – a major milestone in the construction of the terminal.

The port has been ranked in the top five of the global Container Port Performance Index (CPPI), developed by the World Bank and S&P Global Market Intelligence, and now hosts three of the world’s top four shipping operators, CSP COSCO, MSC and CMA CGM.

H.E Falah Mohammed Al Ahbabi, Chairman of AD Ports Group, added: “We are honoured to welcome His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, to inaugurate the Khalifa Port expansion, which is a vital national project to support the direction of our wise leadership to position Abu Dhabi and the UAE at the frontier of global trade.

“Today, Khalifa Port is one of the most advanced deep-water ports in the world. By continuing to expand our operations internationally, we are honouring the memory of the leaders who placed us on the path to progress. We have continued to reach new heights and deliver outstanding results through our expertise and global focus.”

AD Ports Group has evolved into a significant driver of economic growth, contributing US$41.6 billion to UAE GDP, representing 13% of the UAE’s non-oil GDP and creating approximately 373,500 jobs. It continues to attract foreign direct investment through economic cities and industrial zones managed by KEZAD Group and provides a broad range of digital services to enable trade and transport.

Some of the key achievements in 2022 include a series of transformative acquisitions, including a 70% stake in Transmar and TCI in Egypt, providing the company with a market-leading platform for operations along the entire Red Sea and beyond; an 80% equity stake in Global Feeder Shipping, contributing to its long-term strategy to become one of the world’s premier short-sea and feeder shipping players; and the acquisition of Noatum, which will enable the company to build a strong international logistics brand with deep roots in this region.

The company has also acquired companies and announced a series of joint ventures to expand its portfolio of maritime services and its global presence, such as SAFEEN Invictus, Divetech, Alligator Shipping, ASCL, and SAFEEN Surveys and Subsea Services.

In addition, AD Ports Group has significantly grown its fleet to more than 175 vessels and expanded the range of trade routes to span most of the world and provide the highest levels of connectivity between the Arabian Gulf, the Indian Ocean, the Red Sea, East Africa, and Central Asia.

The result has been a record financial performance – with revenue of US$399.1 million and net profit of US$90.9 million in Q3 2022 – as well as a significantly higher global profile for the company and for Abu Dhabi as a major driver of trade, industry, and logistics.

Capt. Mohamed Juma Al Shamisi, Managing Director and Group CEO, AD Ports Group, concluded: “We thank His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, for honouring us by inaugurating the Khalifa Port expansion. Everything we have achieved throughout our history has been with the support and guidance of the UAE’s leadership.

“It is fitting that we are celebrating Khalifa Port’s 10th Anniversary and Zayed Port’s 50th Anniversary today in 2022, which has been a transformational year for our organisation as we expanded our international reach and strengthened our portfolio.

“We have grown from a local champion into a publicly listed group with an expanding global reach. We will continue to expand and invest in the future and demonstrate our capacity for excellence across international markets,” he concluded.

The post UAE President inaugurates $1.08bn Khalifa Port expansion appeared first on Middle East Construction News.

Source: ME Construction News

Saudi Arabia’s National Work Company (NWC) has said that work on a range of water desalination plants, worth a total of US$1.1 billion, is set to begin, covering key regions of the country, such as Dammam, Al Khobar, Al Ahsa, and Qatif.

In a statement, the company said that the project scope includes the implementation of more than 316 kilometres of conveyor and main lines, and the construction of operational reservoirs with a capacity of 1.5 million cu m in addition to projects to improve water networks.

“It will contribute to strengthening the infrastructure of the distribution system and ensuring the efficiency of its operations in the cities and governorates of the Eastern Region,” said Nimr Al Shibl, CEO of NMC.

His comments came during an inspection of the progress of infrastructure projects for water services and environmental treatment in Dammam as well as the Al Khobar and Al Ahsa governorates.

The company added that the engineering design work for the projects has been fully completed and the preparation of operational reservoir construction sites as well as the work on the main and branch pipelines will begin this month.

In late November 2022, Engie and HIWPT launched a desalination training program exclusively for Saudi women.

These projects will be implemented using the best and latest technologies, in coordination and integration between all relevant authorities to ensure the speed of completion of projects and maximise the benefit from them, the official stated.

Scheduled for completion in 2025, the projects will be beneficial to more than four million of the Kingdom’s residents.

The post Saudi’s NWC says work on $1.1bn of desalination projects has begun appeared first on Middle East Construction News.

Source: ME Construction News

JLG Industries has introduced an all-new vertical mast lift series for both indoor and outdoor use, the company has announced.

The new JLG E18MCL model has been designed for construction and industrial applications that require outdoor and indoor capable machines, while the E18MML has been rated for indoor use only, making it most suitable for sensitive flooring and finish work applications, including maintenance. Equipped with solid, non-marking tires the E18MCL has a scissor-style steering that similar to JLG scissor lifts for quick familiarisation and reliable control through tight areas like doorways, the company explained.

The E18MML is said to be equipped with caster wheels and has point & go steering, the same as the more traditional vertical lift steering style on JLG’s predecessor models.

In late July 2022, JLG launched its X22SJP straight boom compact crawler and, later in the month, it appointed Mirco Negri as Senior Product Manager.

 

The “E” in these models’ nomenclature stands for electric, giving a nod to the machines’ modern DC electric drive system. JLG’s E18 models are said to offer two times more duty cycles than the market-leading competitive machines. Due to the batteries being mounted under the platform, the E18s also are designed with improved machine weight distribution for efficient loading and unloading.

According to Misty Mason, Product Manager at JLG, “The new E18 vertical lift series has been engineered to provide the most important features and benefits: maximised durability, ease of serviceability and enhanced productivity — while keeping operator safety, confidence and comfort in mind.”

In late September 2022, Johnson Arabia said it had enhanced its fleet with a wide range of new battery-powered equipment.

The post JLG introduces new vertical mast lift series appeared first on Middle East Construction News.

Source: ME Construction News

Wet processing specialist CDE in partnership with Gulf Center United Industrial Equipment Co and KAK-LAMOR JV/C, have announced plans to supply two contaminated soils wash plants to support the clean-up effort of an estimated 114km2 of polluted land in Kuwait.

As part of the deal CDE will design and engineer a turnkey wash plant for each of the North Kuwait Excavation, Transportation and Remediation (NKETR Zone 1) and South Kuwait Excavation, Transportation and Remediation (SKETR Zone 1) projects. The two 100t/h and 140t/h solutions will process and remediate the coarse soil fraction to eliminate contaminants and recover high-quality washed construction sand and aggregates suitable for reuse, the company said.

Following the destruction of some 700 oil wells in the early 1990s, approximately 26,000,000m3 of soil was contaminated with crude oil, signalling the launch of one of the most extensive remediation programmes involving the cooperation and expertise of a consortium of international partners.

In mid August 2022, CDE said it surpassed 100m tonnes of diverted waste from landfill and, in early November 2022, authorities said that construction work on Kuwait International Airport had achieved significant headway.

Working alongside industrial and engineering services firm Gulf Center United Industrial Equipment Co., CDE’s longstanding partner in Kuwait, and KAK-LAMOR JV/C, CDE wet processing technology will be utilised for the treatment of up to 800,000 tons of contaminated soil per year.

“The scale and ambition of this remediation programme cannot be understated. It is a true test of our engineering excellence and a demonstration of how robust and effective CDE technology is at processing contaminated soils. This is, however, a field in which CDE has an established track record of success. Every year, our proven solutions process approximately 20 million tons of contaminated material and various streams of construction and demolition waste around the world,” said Ruchin Garg, CDE’s Regional Manager, Middle East & Africa.

In late November 2022, Kuwait’s TEC said its prime tourism and entertainment projects will be complete by mid-2023.

The post CDE to supply wet processing equipment for major land remediation effort in Kuwait appeared first on Middle East Construction News.

Source: ME Construction News

B1 Properties has announced a record-breaking season, with notable villa sales across the Palm Jumeirah. Over the past four months, the firm says it has single-handedly sold four specialty villas by Alpago Properties located on Frond G – known as ‘Billionaires Row – as the exclusive broker.

Deniz Zeybek, VP, Sales said, “The demand for luxury villas located on Palm Jumeirah is insatiable. At B1 Properties, we excel at providing our discerning clientele with exactly what they need, paired with exceptional service and sound investment advice.”

The luxury real estate brokerage is said to offer a highly-curated portfolio of some of the Middle East’s most sought-after properties. Since its launch in 2021, the company notes it has quickly earned its position as a specialist in properties located on the Palm Jumeirah.

In late October 2022, Mukesh Ambani purchased Dubai’s most expensive villa for $163mn.

“High-net-worth individuals today are looking for niche, luxury properties that are distinct in aesthetic, well-rounded in amenities, and most importantly, are ready to move into. Prime luxury property prices are predicted to be 13.5% higher in 2023, and we see this in the clear imbalance of supply and demand in the market. The properties in our portfolio are, in my opinion, the actualisation of luxury living,” he added.

Casa Del Sole, a development by Alpago Properties, is said to be one of the most expensive homes to be sold in Dubai, valued at $82.3mn. The Double Signature villa is spread across four levels, with an enclosed area of 25,000sqft. Architecture firm SAOTA along with CK Architectures and Interiors, designed the villa, the firm noted.

Framed Allure, which was sold at $34.84mn, was also developed by Alpago Properties. The 19,240sqft property is said to have a double-height entrance and five ensuite rooms built over four levels. It is billed as an architectural showcase by architect Emre Arolat, with interiors by CK Architectures and Interiors. It is said to be home to one of the oldest Olive Trees in Dubai.

In early November 2022, Alpago Properties announced that its luxury Palm Jumeirah penthouse will cost $68.06mn.

Riva Del Lusso, which was sold at $35.4mn, is billed as having an enclosed area of over 13,000sqft and comprises four floors, five bedrooms. It also features an underwater car vault that can hold up to 10 cars, the firm concluded.

In mid November 2022, LUXHABITAT Sotheby’s International Realty completed the $39.5mn sale of a Palm Jumeirah villa.

The post B1 Properties’ villa sales top US $185mn in four months appeared first on Middle East Construction News.

Source: ME Construction News

Digitalisation is a broad term that has evolved into a requirement rather than a choice. Not utilising technology today would mean falling behind in the rapidly evolving world of competition. However, it is critical to comprehend what going digital in the construction industry actually entails, what it can achieve, and how it is more than just technology and involves coordination and collaboration as a whole society.

The construction industry is critical to a country’s growth, particularly in terms of good infrastructure, smart and sustainable construction, and complex structures. The UAE’s construction output is projected to achieve a CAGR of 3.9% during the 2022-2026 forecast period.

Market growth in the UAE is also expected to be supported by increased spending on construction activities, with several initiatives such as the Energy Strategy 2050, the Sheikh Zayed Housing Program, and the Dubai Tourism Strategy. Aside from developing smart cities, the government is also digitising 1,000 government services and installing 2,000 Wi-Fi hotspots across the country.

A country can thus ensure smart living through effective smart construction, as we see today in the GCC countries. Dubai for instance, has established itself as a top tourist destination in the UAE, drawing a large number of investors, as well as encouraging trade and new businesses. This expansion has been significantly aided by digitalisation and smart living. As a result, the economy of the nation is growing, further driving the government to increase its emphasis on technology adoption, digitalisation, and smart construction.

Digitalisation in construction, therefore, truly embodies the coordination and cooperation of an entire society. It is the combined efforts of various stakeholders, including the government, society, digital technology providers, construction companies, engineers, contractors, as well as educational bodies. It is also necessary that these stakeholders organise events, raise awareness of emerging technologies, and train the next generation of engineers. Eventually, the growth of the construction industry is largely due to the combined contributions of all the aforementioned components.

The construction industry in general has been slow to adopt digitalisation, but is now integrating itself into the digital age. Construction companies have recognised the advantages of emerging technologies in order to stay ahead of the competition by improving quality, focusing on safety, lowering costs, and increasing profits.

Modern construction technologies and trends such as building information modelling (BIM), digital twins, artificial intelligence, machine learning, and robotics are assisting construction professionals in simplifying complex projects, controlling project schedules and productivity, and linking every single device or equipment that works in the sector, thereby boosting operational efficiency.

Likewise, digital twins has also received a lot of attention lately. The technology makes it possible to replicate the physical world into a completely digital one. Digital twins may appear to be a new technology, as more businesses have become aware of it in recent times, however, NASA used the first digital twin on the Apollo 13 mission in 1970, which helped resolve a critical issue in the expedition.

It is evident that the government has strategies in place for its investments in infrastructure or new buildings, as well as how it will manage the capital investments to make it more sustainable. They can further streamline this process, determine the key variables, maximise productivity, and manage costs, with the aid of advanced technologies like digital twins, BIM and connected construction.

Ultimately, advanced construction solutions can contribute to government goals by ensuring fewer errors and mistakes, precise calculations, decreased risks and injuries, as well as reduced fuel consumption and carbon footprint, all of which contribute to successful outcomes, as demonstrated by several flagship projects in the country and beyond.

Read more:

• Digital transformation strengthens real estate resilience
• ALEC’s digital vision revealed
• Omnix and viAct ink deal to increase digitalisation and safety in AEC and O&G sectors

The post Identifying digitalisation as a broader framework in construction appeared first on Middle East Construction News.

Source: ME Construction News

With two days to go for the Big Project Middle East Awards 2022 (BPME Awards), the magazine’s editorial team has revealed the companies, individuals and projects that have made this edition’s shortlist.

Close to 220 submissions were received when nominations closed on 15 November, with several of the project categories receiving dozens of nominations from across the region, with Egypt heavily featured in particular. The GCC as a whole was well represented, with nominations coming from Saudi Arabia, UAE, Qatar, Oman, Bahrain, and Kuwait.

“We saw a very strong turnout in terms of nominations this year. The editorial team had quite a job going through all of them and compiling a curated selection for the judges. Even with our best efforts, they still had nearly 150 nominations to go through,” said Gavin Davids, Head of Editorial and Content at Big Project Middle East.

He added, “Many of the categories were very competitive, with some immense projects being submitted for consideration. Not only did the judges have to look at the technical and engineering aspects of the projects, but due to the prominence of these submissions, had to consider the social and economic value they would bring to their host countries.”

The winners of each category will be revealed at a gala event, which will take place at the Ritz Carlton JBR on 15 December. The event will be held outdoors on the hotel’s recently refurbished lawn, with doors opening at 7PM sharp.

To attend the BPME Awards 2022, email raed.kaedbey@cpitrademedia.com to discuss costs and the best way for you to be a part of the event.

The Shortlist for the Big Project ME Awards is as follows:

Big Project ME Executive of the Year

• Baharash Bagherian – CEO – URB
• Barry Lewis – Managing Director – ALEC
• Francis Alfred – Managing Director – Sobha Realty
• Ian Williamson – Chief Projects Delivery Officer – Red Sea Global
• Kenneth Rob Davies – Managing Director – Depa Interiors

Big Project ME Professional of the Year

• Deepak Hingorani – Project Director – Aroma International Contracting
• Heba Abo El-elaa – Bridge Engineer – The Arab Contractors
• Li Bo – Engineering Manager/Divisional Deputy Engineering Manager – CSCEC – Infrastructure Division

Skills Development Programme of the Year

• ALEC – Tomohy Initiative
• ASHGHAL – New Corporate Strategy 2018 – 2022
• ECC – KAIZEN through LEAN Principles
• Red Sea Global – The Red Sea Vocational Training Program / Elite Graduate Program
• Sobha Realty – Sobha Institute for Construction Excellence

Developer of the Year

• Sobha Realty
• URB
• DAMAC Properties

Civil Contractor of the Year

• China State Construction Engineering Corporation Middle East
• Orascom Construction
• The Arab Contractors

Fit-Out Contractor of the Year

• ALEC Fit-Out
• Depa Interiors
• Pinnacle Interiors

MEP Contractor of the Year

• ALEMCO
• China State Construction Engineering Corporation Middle East – MEP Division
• LASCO
• Voltas

Sustainable Contractor of the Year

• iBuild
• Orascom Construction
• Sobha Realty

Contractor of the Year

• ALEC
• China State Construction Engineering Corporation Middle East
• Hassam Allam Construction
• McLaren Construction
• Orascom Construction

 Supplier of the Year

• Desert Board
• FILA Industria Chimica Middle East
• LATICRETE Middle East
• VERTECO

HSE Project of the Year

• KHAZANA Data Centre by McLaren Construction
• Opera House and Arts and Culture City – Orascom Construction
• SABIS International School AlJada – iBuild
• The Red Sea Project – Red Sea Global

Energy Project of the Year

• Abu Dhabi Water and Electricity Authority Shared Savings Project – Taka Solutions
• New Administrative Capital District Cooling Plant – Kortech
• Ras Ghareb Wind Farm – Orascom Construction
• UAE Wind Program – Power Construction Corporation of China

Sustainable Project of the Year

• 100MW Green Hydrogen Plant – Orascom Construction (part of the Green Hydrogen Consortium)
• Bustanica – Emirates Crop One
• Masdar Central Park – Abu Dhabi Future Energy Company (Masdar)

Fit-Out Project of the Year

• Convention and Exhibition Centre, Expo 2020 – Depa Interiors
• Heliport Terminal @ Expo 2020 Dubai – Pinnacle Interiors
• SABIS International School Aljada – iBuild
• Vision Pavilion – ALEC Fit-Out

 Infrastructure Project of the Year

• Light Rail Transit – LRT – The Arab Contractors
• The Red Sea International Airport – Red Sea Global
• R1013/2D Improvement of Al Shindagha Corridor Phase 2D – China State Construction Engineering Corporation Middle East

 Project of the Year

• Grand Egyptian Museum – Orascom Construction
• KEC Hub – Knowledge Economic City
• Bustanica – Emirates Crop One

The Big Project Middle East Awards 2022 is supported by the following companies:

Gold Sponsors: ALEC, ASGC, ECC

Silver Sponsor: Voltas

Bronze Sponsor: Kairnial

Category Sponsor: Compass Project Consulting

Read about the 2021 Big Project Middle East Award winners here. To learn more about the 2022 Big Project Middle East Awards, click here.

In late September 2022, the Big Project ME editorial team announced a new date for its inaugural ME Digital Construction Awards. Read more about that awards event by clicking here.

The post Revealed: 2022 Big Project Middle East Awards shortlist appeared first on Middle East Construction News.

Source: ME Construction News

As per JLL’s Q4 2022 KSA Construction Market Intelligence Report, Saudi Arabia’s construction industry continues to lead the MENA region despite macroeconomic conditions impacting the sector globally. JLL notes that Saudi Arabia witnessed the highest value of project awards in 2022, which demonstrated its commitment to economic diversification and transforming in line with Saudi Vision 2030.

Construction output growth in KSA is anticipated to rise by 3.2% in 2022, with a further annual average growth rate (AAGR) of 4% between 2023 to 2026 as indicated by Global Data, JLL revealed.

Saudi Arabia has maintained its position as the strongest market across the MENA region with the highest total value of project awards for four consecutive years. As of October 2022, KSA holds a 35% market share with a recorded $31bn worth of contract awards against an overall MENA total of $87bn as tracked by industry reports, the firm said.

In mid November 2022, JLL announced Sean Doherty as Head of Program and Project Management for the MEA.

Saudi Arabia’s pipeline value of unawarded (pre-execution) projects is estimated to be $1.1tn, which includes projects from the study stage through to the main contractor bid. Approximately 70% comprise construction sector projects with residential, cultural, leisure, and hospitality as sub-sector leaders, which is the driving force behind the Vision 2030 strategy.

In the second half of 2022, 13,000 hotel keys are expected to be delivered in Riyadh, Jeddah, and Makkah, accentuating the continuation of the Kingdom’s hospitality sector development, the firm explained.

“Given the volatile market conditions and rising construction material prices, which reached a significant peak during Q2 2022, there is a need for robust mitigation strategies, including a careful approach to contract execution and risk allocation,” explained Laura Morgan, Market Intelligence Lead MEA at JLL.

In late November 2022, PIF subsidiary SEVEN said it would invest $13.3bn into 21 integrated entertainment destinations in KSA.

The top ten contractors in the Kingdom are said to be responsible for $400bn in projects that are currently in the execution stage, accounting for 40% of the total future pipeline value of $1.1tn.

JLL’s market intelligence data also outlined that global economic volatility in the first two-quarters of 2022 created challenges in the local construction market in terms of delivery lead times and instant price increases, with suppliers reluctant to guarantee prices for extended periods of time. In addition, it also indicated improvements from Q2 to Q3 2022, implying that price peaks have passed; however, price increases remain a significant risk due to the correlation to economic factors and observed trends since 2020.

The report also stressed that future construction costs must be balanced against the local market and global economic factors. Though commodity prices are softening or have already flatlined, the Kingdom’s construction sector is heating up, putting pressure on the existing supply chain, and highlighting the need for greater competition to complete the pipeline of projects.

In early December 2022, JLL’s Louise Collins shared her COP27 takeaways and thoughts exclusively with Middle East Construction News.

While inflation projections for the country are relatively soft in comparison to global averages, Saudi Arabia, as well as the wider MENA region, relies on importing construction materials from high inflationary countries, which affects construction material prices, JLL pointed out.

Morgan added, “Moving forward, the construction sector will prioritise development needs that are aligned with evolving trends and demands, with an emphasis on innovation and digitisation playing a significant role within the segment and in powering Vision 2030 projects. That said, the importance and opportunities associated with traditional cost management mechanisms, which can assist developers in establishing budgets during the early stages of procurement in an effort to reduce program delays and support conflict avoidance, cannot be overlooked either.”

From a construction cost perspective, JLL estimates tender price inflation (TPI) has increased by an annual average percentage change of 5% in 2022. The upswing is representative of market factors such as growing contractor and labor demand, commodity, and construction material price fluctuations.

At the 2022 Middle East Consultant Awards, JLL was awarded across three different categories.

Looking ahead, the midpoint TPI forecast represents a potential year-on-year growth of 6% in 2023 associated with the estimated project pipeline value correlated to future demand, according to its intelligence gathered from market sources, the firm concluded.

The post Saudi construction segment remains strongest in MENA says JLL appeared first on Middle East Construction News.

Source: ME Construction News