$190b invested in Oman's construction sector

Business Tuesday 08/May/2018 14:28 PM
By: Times News Service
$190b invested in Oman's construction sector

Muscat: The construction sector in Oman is witnessing robust activities, with the value of the 2,410 active projects exceeding US$190 billion in April 2018, according to BNC Network, the largest project intelligence provider in the Middle East and North Africa (Mena) region.
Among these, 1,840 projects worth $61billion were urban construction, while 70 projects worth $39 billion were in the oil and gas sector and 150 projects worth $32 billion were in the transport sector.
With the crude oil price hovering around $70 per barrel, the Gulf Cooperation Council (GCC) countries including Oman could see an increase in government reserves — part of the windfall was then expected to be invested in large infrastructure projects, energy and power projects that would help the economy grow further.
As many as 230 developments worth more than $29 billion were utility projects, while 110 projects worth $27 billion were industrial.
Of the total projects, 1,730 worth $57 billion were in progress — tender and under construction -- while 350 worth $71 billion were under planning. Of these, 240 projects worth $55 billion were in concept and 110 projects worth $15 billion were in design.
The report came as delegates gathered for the Windorex + Glass and Aluminium Oman trade show that started on Monday. The 3rd edition of this international event seeks to build on the overwhelming success of the previous version attracting more than 5,400 industry professionals.
As many as 330 projects worth more than $61 billion were currently on hold, the BNC Oman Construction Intelligence Report showed. This meant, in terms of value, more than a third of the $190 billion worth of projects were currently on hold.
“With a significant increase in contract award during the fourth quarter of 2017 as compared to the preceding year, there is a significant amount of ongoing construction work and the project pipeline indicates a stable construction market in the coming two years,” Avin Gidwani, Chief Executive Officer of BNC Network, said.
“If the current oil price holds, we expect several projects that are currently on hold to resume, providing a positive impetus to the overall economy of Oman,” he added.
“The increase in oil price is a good sign for the oil exporting countries of the GCC, which helps the current account deficit turn into current account surplus," Gidwani pointed out.