The construction market in the Middle East is riding on the waves of new infrastructure projects, spurring a much-needed recovery for a market that has experienced losses in the past.
This is according to a survey conducted by RICS Global Construction Monitor, in which respondents in the Middle East reported observing a slight increase in the volume of work in the past quarter.
The Construction Activity Index (CAI) for the region in 2021 posted a reading of +8 in the second quarter of 2021, a significant improvement on +3 in the first quarter. According to the RICS report, this is its highest reading in over a year.
While this reading is a positive one for the Middle East and shows a significant pick-up in the growth pace, it is still very much behind compared with the readings posted by Europe (+34), the Americas (+29), and Asia Pacific (+21).
Despite this regional lag in CAI readings, Saudi Arabia’s readings showed high growth, sitting at the 3rd position in the global growth ranking, trailing behind Portugal and the Netherlands.
Infrastructure has been the major driver of this CAI growth, with most respondents citing an increase in ICT, energy, and agribusiness projects as key sectors where there has been a rise in the volume of projects.
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