The Middle East and North Africa (MENA) region will show a steady improvement in terms of construction activity in the coming years, according to a report released by industry data provider GlobalData. In particular, in 2019 construction activity will see 3.3 percent growth, with a gradual improvement expected in the next four years. In the 2022-23 period, the growth is set to reach 4.9 percent annually, GlobalData foresees.
Saudi Arabia, with many ambitious projects already announced and planned, is expected to see 2.6 percent construction activity growth this year and 3.8 percent within the next four years. The trend will be supported by sizeable investments in transport, energy and infrastructure development, as well local housing market expansion along with construction of new cities. In the meantime, the Qatari construction sector is expected to slow down in the coming years as major projects are nearing completion.
In North Africa, Egypt is seen as the most rapidly developing market, with the construction sector foreseen to expand by 11.3 percent within the 2019-23 period, according to GlobaData. The development will be driven by the gas exploitation programs, tourism revival and massive urban investments announced in the country.
The positive construction forecasts are to potentially support steel demand in the MENA region. However, the financing of the projects will to a large extent depend on the oil price situation for the Gulf countries and on the general economic pace in North Africa.