World Economy

$45b (P)GCC Contracts Slated for End 2014

$45b (P)GCC Contracts Slated for End 2014$45b (P)GCC Contracts Slated for End 2014

Infrastructure contracts worth more than $45 billion will be awarded in the (P)GCC by the end of the year, double the value of contracts ($22.6 billion) given in 2012, said a report.

The lion’s share of the contracts will focus on five key areas: rail, roads, airports, ports and free trade zones, TradeArabia quoted a report by The Ventures Middle East.

Rail contracts worth $97 billion are already under way as all six countries work towards the planned 2,117-km (P)GCC-wide rail network by 2018, said the report prepared in association with the organizers of The Big 5, the Middle East’s largest construction exhibition, to be held from November 17 to 20 in Dubai, UAE.

Almost $300 billion will be spent on airports in the Middle East over the next five years with passenger numbers in the (P)GCC expected to reach almost four billion by 2017, it stated.

And every (P)GCC country is involved in expanding its seaports with an estimated $25 billion of ports expansion and investment planned, the report added. Qatar has invested $8.2 billion on a state-of-the-art industrial port, Doha’s New Port Project, which is set to be completed 10 years ahead of schedule in 2020.

Alongside its analysis of the current infrastructure market, The Ventures report gives guidance on licensing and registering products or services in the region.

A vital part of a country’s infrastructure development is free trade zones and all countries in the (P)GCC except Saudi Arabia offer them, though the UAE has the vast majority with 20.

According to the report, the UAE has the highest number of free zones in the (P)GCC at 38, of which 20 are in Dubai.

The report explains how these free zones benefit foreign companies and suppliers and offers a checklist for any company looking to do business in the lucrative infrastructure sector.

To encourage international manufacturers and suppliers to set up their business in the UAE, The Big 5 is organizing a free seminar on ‘How to Trade in the UAE’, providing detailed information about free zones, legal framework and a step-by-step guide on how to do business in the country.