The Gulf Co-operation Council (GCC) region has witnessed $13.8 billion worth of projects announced in July this year, up 140 percent month on month, according to local experts. The energy sector heads the list with announced projects worth $9.2 billion and awarded projects worth $3.7 billion. The value of awarded projects in the urban construction sector tripled in July, totaling $1 billion, with the UAE being the traditional leader. In Saudi Arabia, the project awards totaled $3.3 billion in value, while in Oman $5 billion of new investments were announced.
In July, the UAE completed $7 billion worth of projects, while Saudi Arabia completed $3.7 billion worth. Still the overall figure for the GCC in July remained 20 percent below the average for this year, indicating some delays, consequently resulting in lower demand for steel.
In the January-July period, according to the renewed data, the GCC announced projects at a total combined value of $139 billion. The investments, once entering the consumption phase, will support demand for steel and building materials in the region, but in the long run. “Having new projects is always good, but it will take years for them to start creating steel demand,” an Emirati producer told SteelOrbis.