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The construction industry in the Middle East and North Africa (MENA) region is forecast to spend US$4.3 trillion over the next decade, according to a new report.
The new report, Global Construction 2020, produced by Construction Perspectives and Oxford Economics predicts that growth in global construction will outpace world GDP growth over the next decade.
"The scale of projected growth in construction output of 67 per cent over the next decade from US$7.2 trillion to US$12 trillion represents a growth of 5.2 per cent per annum outpacing global GDP growth," Jonathan Hook, Engineering and Construction Global Leader at PricewaterhouseCoopers said.
With an 80 per cent cumulative growth over the next decade, the MENA region's construction sector is set to surpass the global industry growth which is estimated at 67 per cent, according to the report.
Despite this strong growth, the construction sector in the Middle East region will only account for 12 per cent of global construction activities by 2020.
In the MENA region, Saudi Arabia, with a young and growing population, will see a dramatic growth as expected changes to mortgage laws will help drive a surge in residential construction.
"Qatar will be the fastest growing construction market covered by our report. Its planned growth will be accelerated by US$100 billion of spending on rail, roads, water and other infrastructure, including preparation for hosting the 2022 FIFA World Cup,"according to the report.
By 2020, emerging markets will account for 55 per cent of global construction, up from 46 per cent today. Construction will make up 16.5 per cent of the GDP in emerging markets by 2020, up from 14.7 per cent in 2010.
China and India will be the main drivers of this growth, accounting for 38 per cent of the increase. A total of US$97.7 trillion will be spent on construction globally during the decade and by 2020, construction will account for 13.2 per cent of world GDP.