MEED Insights: Middle East and North Africa (MENA) Projects Market Outlook 2019
Summary The Middle East and North Africa (MENA) region is home to some of the most exciting projects markets in the world, offering abundant opportunities as governments seek to develop infrastructure to meet the needs of rapidly expanding populations, and to deliver economic diversification. Since 2008, some $2.3tn of contracts have been awarded across the region, an average of about $216bn of awards a year, with the GCC accounting for almost two thirds of this. And with an estimated $1.8tn of projects planned across the region, the pipeline of future projects is vast.
But while the need for infrastructure has never diminished, the crash in oil prices from 2014 to 2016 has seen major changes to the market.The introduction in 2016 of fiscal adjustment policies led to a sharp slowdown in project spending, with the value of contract awards falling to about $180bn a year in 2016 and 2017, compared to $226bn a year from2008 to 2015.
This reduced level of awards is set to continue in 2018 and 2019.
It is a difficult time for project companies in the region.The reduced level of new opportunities and increasing competition have seen a hardening in the market as project clients have pushed for lower prices and delayed payments.
Faced with falling profit margins and tightening cash flow, project companies are rethinking their strategies and restructuring. While heightened geopolitical tensions are increasing political risks in the region.
Despite this, the region still offers some of the best project opportunities in the world.The need for infrastructure and economic diversification is greater than ever.
And, as home to some of the world’s wealthiest countries, the financial muscle is available to meet these needs and the recovery in oil prices and economic growth in 2018 has seen an improvement in the underlying conditions for project spending.But anyone seeking to do business in the region must be both flexible and patient.
The biggest projects will take time to come to the market, and contract award levels may never recover to pre-2016 levels.
Some of the most significant projects will be driven by a new generation of clients such as the Renewable Energy Project Development Office (Repdo), or Public Investment Fund (PIF), both in Saudi Arabia, or the Kuwait Authority for Private Partnerships (KAPP), which are seeking private sector partners for strategic projects in tourism, housing, renewable energy, and transport. The return of markets Egypt and Iraq will also drive opportunities.
Written by MEED, the Middle East market experts within the GlobalData Group, a new approach to project delivery is required.Governments want greater economic sustainability and are seeking innovation improve efficiency and reduce the need for capacity expansions.
Private developers are expected to take a larger share of the capital burden through public private partnerships (PPP), as well as through the privatisation of state utilities. And future projects are expected to deliver more ‘in-country’ value in terms of job and supply chain opportunities for local companies.
Reasons to buy - Identify new opportunities in the MENA region - Gain outlook for contract awards 2018-2022 - Learn about country and sector breakdown of future project plans - Support business planning and strategy - Identify challenges to enable you to mitigate and avoid risk - Profile contractor landscape in each sector - Assess the challenges in MENA’s projects market.
Our reports have been used by over 10K customers, including:
The power quality equipment market is projected to reach USD 46.1 billion by 2026 from an estimated USD 32.4 billion in 2021, at a CAGR of 7.3% during the forecast period. Enhancing power quality to reduce overall carbon footprint from electrical devices and maximizing cost and energy savings are the main drivers for the power quality equipment...
345 pages •
By Asia Market Information & Development Company
• May 2021
China’s demand for Stabilizer has grown at a fast pace in the past decade. In the next decade, both production and demand will continue to grow. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, import & export, consumer consumption...
Egypt Projects, H1 2021 - Outlook of Major Projects in Egypt - MEED Insights
Egypt continues to be one of the few projects markets in the Middle East and North Africa (MENA) region to have continued to grow over the past three years during a period of lower oil prices. This thanks mainly...
The generator sales market is expected to grow from an estimated USD 19.9 billion in 2021 to USD 26.5 billion in 2026, at a CAGR of 5.9% during the forecast period. Generators can be used in standby, prime, continuous, and peak shaving applications in various end-user sectors such as industrial, commercial, and residential. The main driver...
Qatar Projects H1 2021 - Outlook of Major Projects in Qatar - MEED Insights Summary Of all the major GCC project markets Qatar proved to be the most resilient to Covid-19 and the regional economic slump. At just over $10bn, contract awards last year were only marginally below the 2019 total as the...
Saudi Arabia Projects, H1 2021 - Outlook of Major Projects in Saudi Arabia - MEED Insights
The COVID-19 pandemic has in most countries caused significant disruption to the projects market and Saudi Arabia has been no exception. As the coronavirus took hold and the kingdom went to economic...
Global Hydrogen (Energy) Market Report, 2021 - Market Outlook, Trends, and Key Country Analysis
latest report "Global Hydrogen (Energy) Market Report, 2021 - Market Outlook, Trends, and Key Country Analysis" offers comprehensive information and understanding of the global hydrogen market....
219 pages •
By Asia Market Information & Development Company
• May 2021
China’s demand for Amino Acid has grown at a fast pace in the past decade. In the next decade, both production and demand will continue to grow. The Chinese economy maintains a high speed growth which has been stimulated by the consecutive increases of industrial output, import & export, consumer consumption...
Kuwait Projects, H1 2021 - Outlook for Major Projects in Kuwait - MEED Insights
Kuwait is currently the fourth largest projects market in the GCC after the UAE, Saudi Arabia, and Qatar.Historically, the local market has underperformed its potential, weighed back by politics and a lack...
Global Construction Outlook to 2025, Q1 2021 Update
The analyst holds a positive view on the outlook for the global construction industry following the historic collapse in activity in 2020 amid the severe disruption caused by restrictions imposed to contain the spread of COVID-19. The...
You can change your Cookie Settings at any time but parts of our site will not function correctly without them.