MENA construction industry accelerates with $156 billion in projects awarded in 2021

The construction industry in the MENA region gained momentum in 2021 thanks to industry improvements and digital transformation driving growth, according to a new report from JLL.

In its latest report, the property services and investment management firm said $156 billion worth of projects were awarded in the region in 2021, following a total of $119 billion in 2020.

The announcement by Egypt, Saudi Arabia and the United Arab Emirates of their government spending plans for 2022 should also be a catalyst for growth in the coming year, JLL said.

“We believe the pandemic has caused a shift in mindset and envision customers and developers looking for a shift in their project processes, which will in turn lead to new or revived strategies to promote project success. project,” said Gary Tracey, cost manager. Management-Project & Development Services, JLL MENA.

“We also expect market sentiment to continue to improve as commodity prices stabilize over the course of 2022.”

JLL pointed to the continuation of commercial and leisure activities towards pre-pandemic levels, saying it will continue to encourage economic growth in the region, after purchasing managers’ indices (PMIs) rose in key markets. .

For example, Egypt’s PMI hit 49.0 in December, but the UAE’s hit 55.9 in December, the highest since June 2019, with anything above 50.0 indicating improving conditions. commercial.

Saudi Arabia accounted for the highest value of awarded projects for 2021 with $41.3 billion.

Metal prices have been volatile in 2020 and 2021 due to global demand and logistical constraints caused by the pandemic. Rising transportation costs due to rising fuel prices have also impacted material costs in the region, according to the report.

(Reporting by Imogen Lillywhite; editing by Seban Scaria)

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