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Key findings from Deloitte Middle East's annual construction report have shown that there remain considerable opportunities to be found in the region's construction sector in 2012
The Deloitte report indicated that there were at least an estimated US$500 billion investment opportunity regionally in energy, transportation, education, healthcare and other critical sectors of economic development, with the key market opportunities to be found in Saudi Arabia, Qatar, Abu Dhabi and Iraq.
The annual report showed that large infrastructure projects, particularly around social and transport infrastructure, would offer tremendous opportunities for contractors. In terms of projects in the pipeline across the region, the majority were said to be social at 36 per cent, power-related at 29 per cent, 13 per cent were in transport and 13 per cent in the oil and gas sectors.
"Construction contracts worth $40 billion were awarded to contractors in the first quarter of 2011, of which 47 per cent were in the energy sector,” said Deloitte Middle East audit partner Cynthia Corby.
The report said, "Of the biggest investments currently underway is Qatar's plan to spend $100 billion in preparation for hosting the 2022 World Cup, and Saudi Arabia's capital spend program approaching $400 billion over the next 10 years alone."
The Deloitte construction industry report indicated that there were vast opportunities across the region, with longer term infrastructure investment plans estimated to be in excess of $1 trillion.
The report noted that this figure could increase as governments assess the impact of the Arab Spring on priority investments. The uprisings that took place across the region have been credited with positively influencing infrastructure investment, forcing governments to accelerate spending programmes in order to meet the higher expectations of their citizens.