Mideast projects spending hits a higher flight path

Posted on February 7, 2012

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The challenge is to balance oil-price fluctuations with investment plans.

English: Al Maktoum International At Dubai Wor...

The control tower at Dubai's Al Maktoum International airport. Transportation projects are going full steam ahead in the Middle East. (Image via Wikipedia)

From the USD 43 billion Qatar rail network to the USD 4 billion Saudi-Egypt causeway project, via the USD 8 billion Al Maktoum International airport, the top 25 transportation infrastructure projects under development in the Middle East and North Africa are expected to soak up more than USD 148 billion over the next 10 years, thanks to rising populations and greater demand for mobility via air, land and sea.

According to the Zawya Projects Monitor, close to 300 transportation projects are under way, with the top 25 featuring a wide mix of railways, roads, ports, and airports. The region is creating vast networks to facilitate tourism, logistics and cross-border trade, positioning it to achieve the dream of becoming a global trade hub based on its geographic location.

Another nugget of intelligence gleaned from the Zawya Projects Monitor is the fact that USD 67 billion worth of projects were wakened from dormant mode in the Gulf countries alone in 2011, as the hydrocarbons-exporting nations went into investment overdrive.

The benefits of this expenditure program are expected to trickle down to several other sectors — such as banking, project finance, construction, consultancy, hospitality, retail and others — as regional and global companies rush to take advantage of the abundance of contracts waiting to be awarded. The challenge for the region’s economies — which are still heavily tilted toward revenues from hydrocarbon exports — will be to manage financial inflows and outflows in a period when the price of oil fluctuates due to global economic problems.

— Yazad Darasha

More intelligence on the resurgent projects boom in the Mideast (Zawya.com):

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Posted in: Projects