GCC countries spend on average more money on interior contracting and fit-outs elements of a construction project than their counterparts in the US, Europe and Japan, said the organisers of an upcoming interiors exhibition in Dubai.
The 22nd annual edition of Index International Design Exhibition will run from September 24 to 27 at the Dubai World Trade Centre.
“The hotel and hospitality sector is the biggest segment spender, with over 22.5 per cent of total project cost allocated to interior contracting and fit-out projects – more than any other sector within the GCC’s building construction industry. Index 2012 will respond to this huge market growth and cater to the demand of all construction projects,” said Naomi Barton, Index event director.
Building projects worth over $57.8 billion were awarded to contractors in 2011 across all building sectors (residential, commercial, hospitality and retail), with the sector likely to increase by 13 per cent to $65.5 billion by the end of 2012, according to new research by Ventures ME commissioned by dmg :: events, the organising team behind the Index.
In 2011, construction projects to the value of $46.52 billion were completed in the GCC, a figure expected to increase dramatically, up 71 per cent to $79.75 billion in 2012. The research revealed that the UAE continues to garner the largest share of the total GCC building construction market – accounting for almost half (48 per cent), with Saudi Arabia taking a further third (33 per cent) followed by Kuwait (8 per cent), Qatar (6 per cent), Oman (3 per cent) and Bahrain (2 per cent).
The value of commercial real estate projects is set to almost double in 2012 to $15.3 billion from $7.7 billion in 2011 as the GCC continues to be a leading luxury destination for retailers, with four of the six GCC countries ranking among the top 20 global retail destinations, according to the Global Retail Development Index (GRDI).