GCC Building Construction and Interiors Overview

September 2012

GCC Building Construction and Interiors Overview

September 2012

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GCC Building Construction and Interiors Overview

September 2012

Table of Contents
GCC Building Construction and Interiors Overview September 2012 ............................................................. ................................ 1 Introduction ................................................................ ................................................................................................ ....................................................... 4 Chapter 1 ................................................................ ................................................................................................ .......................................................... 13 GCC Commercial Real Estate Market ................................ ................................................................................................ ............................................... 13 Interiors Contracting and Fit Outs in Commercial Sector D Developments ................................................... ................................ 14 Chapter 2 ................................................................ ................................................................................................ .......................................................... 16 GCC Hospitality Sector ................................ ................................................................................................ ..................................................................... 16 Hotel Interiors Contracting and Fit-outs Sector ................................................................ ........................................................... 19 Chapter 3 ................................................................ ................................................................................................ .......................................................... 21 GCC Residential Development Sector Overview ................................................................ .............................................................. 21 Residential al Sector Interiors Contracting and Fit Fit-Out Sector ................................................................ ....................................... 24 Chapter 4 GCC Retail Development Sector Overview ................................................................ ..................................................... 25 Retail Development Interiors Contracting and Fit Fit-Out Sector .................................................................... ................................ 27 Chapter 5 ................................................................ ................................................................................................ .......................................................... 29 GCC Healthcare Sector Overview ................................ ................................................................................................ ..................................................... 29 Healthcare Development Interiors Contracting and Fit Fit-Out Sector ............................................................ ................................ 31 Chapter 6 ................................................................ ................................................................................................ .......................................................... 33 GCC Educational Development Sector Overview ................................................................ ............................................................ 33 Educational Development Interiors Contracting and Fit Fit-Out Sector........................................................... ................................ 35 Chapter 7 ................................................................ ................................................................................................ .......................................................... 37 GCC Import-Export-Re Re export Statistics of Major Interior Items ..................................................................... ................................ 37 Conclusion ................................................................ ................................................................................................ ........................................................ 41

List of Figures
Figure 1: GCC Building Construction Projects completion (US$ Million), September 2012 .............................. 5

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GCC Building Construction and Interiors Overview

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Figure 2: GCC Interior Contracting and Fit Fit-out Spend (US$ Million), on), 2011 and 2012 ....................................... 7 Figure 3: GCC Interior and Fit out spend, Growth versus Share by country, Sep 2012 ..................................... 8 Figure 4 GCC Interior and Fit out spend, Growth versus Share by sector, Sep 2012 ...................................... 10 Figure 5: GCC Commercial Sector Projects Completed or Expected to be Completed Split by Countries (US$ Million), 2011-2012 ................................ ................................................................................................................................ .......................................... 14 Figure 6: GCC Commercial Interiors and Fit out Spend by Country (US$ Million), 2011 2011-2012 ....................... 15 Figure 7: GCC Hotel Projects Completed in 2011 and Expected to be Completed in 2012 (US$ Million), 2021 20212012................................................................ ................................................................................................ .................................................................. 17 Figure 8: GCC Hotel Interior Contracting and Fit out Spend (US$ Million), 2011 2011-2012 2012 .................................. 19 Figure 9: GCC Residential Projects Completed in 2011 and Due for Completion in 2012 (US$ Million), 2011 2012................................................................ ................................................................................................ .................................................................. 22 Figure 10: Residential Sector Interiors Contracting and Fit out Spend (US$ Million), 2011 2011-2012 .................. 24 Figure 11: Retail Construction Projects Completed in 2011 and Due for Completion in 2012 (US$ Million), 2011-2012 ................................................................ ................................................................................................ ........................................................ 26 Figure 12: GCC Retail Interiors Contracting and Fit Fit-out Spend (US$ Million), 2011-2012 .............................. 27 Figure 13: GCC Medical Projects Completed in 2011 and due for completion in 2012 by country, (US $ Mn) ................................................................ ................................................................................................................................ .......................................... 30 Figure 14: GCC Medical Interiors and Fit out Spend (US$ Million) by Country, 2011 - 2012 .......................... 31 Figure 15: GCC Educational Projects c completed ompleted in 2011 and due for completion in 2012 by country, (US$ Million) ................................................................ ................................................................................................ ............................................................. 34 Figure 16 GCC Educational Interiors and Fit out Spend (US$ Million) by Country, 2011-2012 2011 ....................... 36 Figure 17: Import, Export and Re-export export of Interior Items Items-Furniture Furniture (US$ Million) by Country Coun .................... 37 Figure 18: Import, Export and Re-export export of Interior Items Items-Lamps Lamps and Lighting Fittings (US$ Million) by Country ................................................................ ................................................................................................ ............................................................. 38 Figure 19: Import, Export and Re-export export of Interior Items Items-Plastic Plastic Bathroom ware (US$ Million) by Country39 Country Figure 20: Import, Export and Re-export export of Interior Items Items-Ceramic Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, etc., (US$ Million) by Country ................................................................ ................................................................... 40

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GCC Building Construction and Interiors Overview

September 2012

Introduction
For the GCC economies and its Interiors nteriors industry industry, 2009 and 2010 were difficult years. y The construction industry, that is fundamental to both, faced unprecedented challenges following follo a global economic meltdown, negative investor sentiments leading to numerous project cancellations, cancellations the political unrests in Bahrain and Oman, oversupply challenges plunging the rentals and sales in commercial arena, increasing attrition rates among expat labour force and similar other issues. It was therefore not surprising that the recovery ery made by the economy and the industry in 2011 was fragile though promising and set the pace of growth for 2012. The industry recovered its momentum and continued a sustained yet cautious growth path in 2012, with prudent economic policies encouraging developments velopments across all spheres of infrastructure, housing, commercial, retail, m medical edical and educational sectors. Whilst the steadily rising population and booming economy fuels the construction of affordable housing schemes and commercial developments in Saudi di Arabia, the real estate activities in UAE will witness greater stability on back on a healthy growth in tourism. The fastest growing economy of Qatar will witness progressive developments as the country aims to fulfil its vision for 2030 in addition to preparing itself for hosting the coveted Football world cup in 2022. Greater focus on affordable homes and tourism activity will provide the much required impetus for Oman to make a comeback whilst Kuwait will benefit from an increase in demand for private housing due to undersupply similar to Bahrain where there exists significant demand for affordable housing projects as developers continue to focus on the premium segment. With oil prices expected to remain stable, any further increase on Government spend spending ing will support investment and consumer spending thereby having a positive effect on GDP growth which serves well for overall economy and construction sector in particular. Building projects worth over US$ 46.5 billion were completed in 2011 within all the building sectors including Residential, ial, Commercial, Hospitality, Retail sectors, , Medical, Educational sectors etc and is likely to reach US$ 79.75 billion in 2012 (as of current construction schedule) thus posting a robust growth of 71 percent year on year. Figure 1 provides the sector wise split of the building construction projects completed and expected completion in GCC as of September 2012.

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GCC Building Construction and Interiors Overview

September 2012

Figure 1: GCC Building Construction Projects completion (US$ Million), September 2012

GCC Building Construction Projects completed and expected completion - Split by sector (US$ Million), Sep 2012
40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 Others Commercial Buildings Hotel Residential 2011 2012 Shopping Centre Hospitals Educational facilities

Source: Ventures Onsite MENA Projects cts Database ( (www.venturesonsite.com)

The residential sector remains the greatest benefactor of GCC Building Construction investments as GCC governments continue to concentrate on plugging the escalating demand s supply upply gap in the affordable housing sector across all countries within GCC. While the largest shortfall in affordable housing is felt in the largest market of Saudi Arabia other countries like UAE, Bahrain and Oman also require more dwellings in this sector of the market. Following the residential sector, Commercial buildings and hotel projects occupy the second and the third largest sector sectors expecting completion in 2012.

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GCC Building Construction and Interiors Overview

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The Building construction sector with its promising outlook paves way for encouraging developments in the Interior and fit-outs outs market which is predominantly dependent on the completion of building constructions across all spheres of residential, retail, commercial, hospitality, medical, educa educational and other sectors including airlines. The GCC interior contracting and fit outs sector encompassing internal wood works, soft and hard furnishings, lightings, partitions, flooring, kitchens, bathroom fittings etc constitutes approximately 10 to 20 percent of the average construction project value and is racing ahead of its more mature counterparts in the US, EU, Japan. While markets worldwide have shrunk under the slowdown, in GCC there was a decisive shift towards minimalist designs that utilized space and money optimally though markets continued to witness growth including a healthy refurbishment market. In 2011, 201 the GCC market for interior contracting and fit outs was estimated at US$ 5.04 billion. Growth in this highly adaptive market is set to reach US$ 9.4 billion by 2012. Figure 2 provides the GCC Interior decoration and fit out spend by sector for the years 201 2011 and 2012.

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GCC Building Construction and Interiors Overview

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Figure 2: GCC Interior Contracting and Fit-out out Spend (US$ Million), 2011 and 2012
4,000

GCC Interiors Contracting and Fit-out Fit Spend (US$ Million), 2011-2012

3,500
Interiors Contracting and Fit-out spend (US$ Million)

2011 3,000

2012

2,500

2,000

1,500

1,000

500

Commercial Buildings Hotel Residential Shopping Centre Hospitals Educational facilities Others

Source: Ventures Onsite MENA Projects Database ( (www.venturesonsite.com)

As of September 2012, interior and fit out spend in residential sector projects estimated at US$ 3.7 billion occupies the largest share of 39 percen percent of GCC interiors and fit out market. Following the residential sector, Commercial building construction and hotels occupy the second position with a share of 18 percent each. The economic slowdown in Europe and US has encouraged firms to look further afield eld for new businesses thus benefitting the growing markets in GCC. Despite facing challenges of oversupply there continues to be a significant supply of office space expecting completion in 2012 with an additional 2, 97 000 sq m of office space in Dubai and 3, 47 000 sq m of office space in Abu Dhabi. The hospitality sector, wherein interior and fit outs remain a significant part of investments, had witnessed marked improvement over 2011 with projects worth US$ 7.3 .3 billion expected to be completed by year yea end; of which interiors and fit out ut spend is estimated at US$ 1.65 billion for 2012.

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GCC Building Construction and Interiors Overview

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Figure 3 provides a comparative analysis of the largest versus fastest growing countries with regards to the interior and fit out spend as of September 2012 2012.
Figure 3: : GCC Interior and Fit out spend, Growth v versus Share by country, Sep 2012
200% Kuwait 150% Oman 100% Qatar Saudi Arabia

50% UAE

0% -10% 0%

Bahrain 10%

20%

30%

40%

50%

-50%

Source: Ventures Onsite MENA Projects Database ( (www.venturesonsite.com)

As of September 2012, UAE remained the la largest rgest market for Construction Interior and fit out sector with over 40% of total project value being invested in various sectors in the country. However despite remaining the largest market, annual growth in this market remains at a protracted level when c compared to other high growth markets of Saudi Arabia Arabia, Qatar, Kuwait and Oman wherein interior and fit out spend is experiencing high growth levels. The largest GCC market of UAE faces challenges owing to oversupply, negative investor sentiments, project de delays lays and cancellations due to which growth prospects remain at a below optimum level. Key Industry participants vying to capture a slice of this large market should focus their effort on large scale construction projects across different sectors in order t to achieve greater economies of scale and increased profitability. The second largest market in GCC is the Kingdom of Saudi Arabia (KSA) with a share of 36 percent of the total GCC interior and fit out spend in 2012. A booming economic growth, increased gov government spending on infrastructure, commercial, residential, hospitality, medical and educational sectors fuels encouraging growth prospects across key Industry participants in this high growth, large share market.

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GCC Building Construction and Interiors Overview

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Qatar, the fastest growing economy in GC GCC C is the third largest market with a share of 14 percent of total GCC interior and fit out spend as of Sep 2012. As the country prepares itself for a phenomenal development in order to equip its infrastructure and construction sector to host the most covet coveted World Cup 2022 event in addition to the all round developmental efforts laid in its Vision 2030 mandate, the building construction sector in this country is witnessing progressive growth fuelled by increased Government investments and robust economic de development velopment thus enabling key interior industry participants to augment their efforts to capture the slice of this high growth market. Industry participants vying to remain buoyant in this high growth market should focus on bagging numerous projects irrespective ctive of its value to increase their share and improve market visibility. Despite accounting for a mere 5 percent share of the total GCC interior and fit out market, Kuwait remains a high growth market with numerous building construction projects expected completion in 2012 as compared to a moderate year in 2011. Key interior industry participants must therefore try to bag numerous projects by either competing individually or forming a mutual consortium and offering competitive quotes keeping in mind overa overall project values to increase their market presence. With an expected investment of US$ 278 million, Oman accounts for a 3 percent share of the total GCC Interior and fit out spend as of Sep 2012. Despite the lower share, growth prospects in this country remain impressive as the country gears up its tourism efforts in order to realise its vision of remaining the most preferred tourist destination in the global tourism arena. Similar to Kuwait, Key Interior Industry participants in this highly competitive s sector ector should form strategies to increase their market visibility to garner a better share in this high growth sector in addition to entering other larger markets. Bahrain, faced with challenges owing to political instability during 2011, is gradually tryin trying to stabilise its construction sector thus remaining the low share, low growth prospect market as of September 2012. Construction projects commenced in 2011 or before are struggling to reach completion with various projects competing with each other for t the he much required financial impetus. However, increased public private partnership will in future pave way for encouraging developments particularly in the affordable residential units thus providing a promising future for the construction sector in the cou country. Interior sector participants in this market should work on retaining their existing position whilst focussing their efforts on other neighbouring high share high growth markets in the short to medium term.

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GCC Building Construction and Interiors Overview

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Figure 4 provides a comparative analysis of the largest versus fastest growing sectors with regards to the interior and fit out spend as of September 2012
Figure 4 GCC Interior and Fit out spend, , Growth versus Share by sector sector, Sep 2012
350% 300% 250% 200% Hotel 150% 100% 50% 0% -10% -50% -100% -150% Educational facilities 0% 10% 20% 30% 40% 50% Others Commercial Buildings Residential Hospitals Shopping Centre

Source: Ventures Onsite MENA Projects s Database ( (www.venturesonsite.com)

As of Sep 2012, the residential sector remains the largest market for GCC interior and fit out sector with investments worth US$ 3.68 billion being invested in various resident residential ial units expecting completion by 2012. Despite the increasing focus on residential growth in this large scale sector with a measured growth path, as compared to high growth sectors such as retail shopping centres, hotels, hospitals and similar others, interior erior spend in residential units is expected to remain at a meagre level of just 11 percent of the total project value approximately. However the large value of project completions anticipated by end of 2012 provides promising opportunities for key interio interior r industry participants to bid for large residential construction projects thus vying to take a slice of the large market pie. As of September 2012, Interiors and fit out spend in commercial ommercial office establishments is expected to reach US$ 1.69 billion representing esenting a share of 18 percent by 2012 thus making it the second largest market for key industry participants to focus their expansion efforts in this arena. Growth in the interior interiors sector in this market also remains more or less similar to the residential sector as challenges pertaining to oversupply may hamper future project completions thus plunging interior interiors and fit out spend in the longer term.

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GCC Building Construction and Interiors Overview

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Participants vying to compete in this sector must provide competitive bids to take advantage of large share thereby hereby increasing its market presence trying to garner greater economies of scale by competing in large scale projects. As of September 2012, the he third largest interior and fit out market is the hospitality sector with investments worth US$ 1. 65 billio illion expected to be invested in various hotel projects by 2012 thus providing an ideal platform for key interior industry participants to focus their efforts. Growth in contrast to the commercial establishments remains highly impressive driven by the augmented efforts of the GCC governments in making their countries the most preferred tourist destination in the Global Tourism map. Additionally interior spend in this sector is also expected to occupy a significant share of 22.5 percent of the total project costs thus forming an important aspect for the interior development companies to focus their efforts upon. Retail establishments remain the fourth largest market with a total share of 8 percent of the GCC interior and fit out spend as of September 2012. Similar to hotel sector, growth in retail shopping centre projects remains buoyant fuelled by the increasing number of malls and shopping establishments catering to the increasing local and tourist demand across the length and breadth of GCC nations nations. The Medical sector comprising hospital construction and refurbishments remain remains the fifth largest sector with a 5 percent share of the total GCC interior and fit out market as of Sep September tember 2012. Increased focus on economic development in addition to prov provision ision of advanced state of art medical facilities has provided an increasing edge for interiors and fit out participants to focus their efforts in this increasing growth potential sector. Despite boasting a similar 5 percent share of the GCC interior interiors and fit out market with investments worth US$ 431 million for 2012, the educational ucational sector suffers from less impressive growth rates due to a significant number of project completions witnessed in 2011 as compared to those expected in 2012 thus forcing key interior terior industry participants to focus their efforts on other high growth sectors to improve their market presence. This study on GCC Interiors industry focuses on the developments in the following sectors of the Building Construction Industry. GCC Commercial real estate sector

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GCC Building Construction and Interiors Overview

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GCC Hospitality sector GCC Residential sector GCC Retail sector GCC Medical sector GCC Educational sector

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GCC Building Construction and Interiors Overview

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Chapter 1 GCC Commercial Market

Real

Estate

The prevailing situation in the GCC commercial sector continues to be oversupply in 2012, as demand is still weak, though progressively moving toward an upturn. The GCC has begun to garner significant business from the reverse flows from countries such as Europe and the US still in recession, while investors aiming to reap short term gains find their way to the still attractive real estate markets of the region. These markets are highly competitive with over US$ 7.7 billion worth of projects completed in 2011 alone and likely to more than double that number at US$ 15.3 billion that are expected ed to be completed in 2012, posing huge opportunities for the commercial interiors and fit outs market. However, oversupply is likely to continue to be a huge dampener, as it is a buyers market. Commercial developments in the GCC are ma mainly concentrated in and around the capital and commercial cities of Dubai, Abu Dhabi, Riyadh, Musc Muscat, Doha and Bahrains Seef district. Figure 5 describes the country wide split of projects completed or likely to be completed in 2012 in the commercial buildings sector.

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GCC Building Construction and Interiors Overview

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Figure 5: GCC Commercial Sector Projects Completed or Expected to be Completed Split by Countries (US$ Million), 2011 2011-2012
8,000

GCC Commercial Projects Completed in 2011 and Due for Completion in 2012 by Country (US$ Million)

7,000 2011 6,000 2012

Projects Value (US$ Million)

5,000

4,000

3,000

2,000

1,000

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures Middle East Projects Database

Accounting for an estimated share of 44 percent of total projects completed, , UAE is expected to continue to lead the market for commercial establishments amongst the GCC countries. In UAE, Commercial projects worth US$ 6.7 billion are estimated completed in 201 2012. However, UAE is fast losing share sh in the mounting stockpile of commercial projects to KSA, Qatar and Kuwait with projects worth US$ 5.6 billion, US$ 1.5 billion and US$ 0.81 million respectively. The fastest growing market for commercial establishments as of 2012 is Saudi Arabia witnessing a extraordinary growth of 2 277 percent increase from US$ 1.5 billion worth of commercial projects completed in 201 2011, 1, followed by Oman which also grew by a whopping 244 percent between 2011 and 2012.

Interiors

Contracting

and

Fit

Outs

in

Commercial ommercial

Sector

Developments
The expanding supply of commercial sector in the GCC provided opportunities to the tune of US$ 0.85 billion worth of interiors development in 2011 2011, , likely to grow to 1.69 billion in 2012. 2012 Figure 6 provides the

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GCC Building Construction and Interiors Overview

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country wide split of interiors contracting and fit outs spend in the commercial sector developments in GCC.
Figure 6: GCC Commercial Interiors and Fit out Spend by Country (US$ Million), 2011-2012
800

GCC Commercial Interiors and Fit out Spend (US$ Million) by Country, 20112011-2012
700

Commercial Interiors and Fit out Spend (US$ Million)

600 2011 500 2012

400

300

200

100

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

Though UAE continues to be the largest market for commercial interiors contracting and fit-outs with a expected spend of US$ 739 million, KSA is fast catching up with a spend of US$ 616 million, due to greater number of projects being completed backed by the vast spending programme of the government government. The commercial interiors contracting and fit out spend includes investments catering ng to lighting, furnishings, office partitions, wood flooring and internal wood works, bathroom fittings etc which collectively represent a 10 to 12 percent of overall project costs involved in th the e construction of such premises. premises The pace of interiors is also so likely to be high in Qatar, in third place, with US$ 167 million of commercial projects expected to complete in 2012 as part of its preparations for the football World Cup 2022.

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GCC Building Construction and Interiors Overview

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Chapter 2 GCC Hospitality ospitality Sector

Perceived as a safe haven for investors an and d tourists amid the Arab Spring and the economic slowdown in Europe, the GCC hospitality sector witnessed a healthy upturn in 2011 2011, , in spite of lingering concerns of oversupply and contractions in Revenue Per available Room (RevPar). According to a hospitality report by Alpen Capital, the region recorded revenues of US$ 16 billion from hotel rooms in 2010 and are forecast to grow to US$ 22 billion by 2012and US$ 27 billion by 2015. The market stock of hotel rooms was estimated at 330,523 and is likely y to grow by 30 per cent. The largest shares were recorded by Saudi Arabia with 66 per cent and UAE with 25 per cent; with Oman at 3 per cent and Qatar, Bahrain and Kuwait each contributing 2 per cent. The supply of hotels according to a 2012 report by STR Global was estimated at 437 hotels bringing a total of 165,281 rooms into the market, where again Saudi Arabia leads in terms of number of rooms planned for development followed by UAE. However, in terms of rooms under construction, UAE ranks first with Saudi audi Arabia and Qatar following second and third, respectively as of 2011. projects completed in the hotel otel sector across the GCC at Saudi Arabia and UAE also led the upturn with p US$ 2.7 billion in 2011 with an expect expected US$ 7.3 billion to be completed in 2012 across all counties in GCC. Figure 7 provides the split of all hotel projects completed in GCC Countries in 2011 201 and expecting completion in the 2012.

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GCC Building Construction and Interiors Overview

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Figure 7: GCC Hotel Projects Completed in 2011 and Expected to be Completed in 2012 (US$ Million), 2021-2012 202
4,000

GCC Hotel Projects Completed in 2011 and Due for Completion in 2012 by Country (US$ Million)
3,500 2011 3,000 2012

Project Value (US$ Million)

2,500

2,000

1,500

1,000

500

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

Though UAE continues to hold the largest share in the GCC hotel projects completed in 2011 and likely to be completed in 2012, Saudi Arabia is perceived by investors as the second most attractive of the GCC hospitality markets in the region with hotels per performing forming well and though there was not too much new supply in 2011. The he flatness of the Riyadh market was compensated by the growing religious tourism potential ial of Mecca and Medina markets, strong demand in Jeddah as well as improving hotel performance across all markets. . With increasing supply likely in 2012, the performance of the hotel sector for Saudi Arabia is definitely likely to get a boost, with nearly 10 international brands offering nearly 3000 hotel rooms likely to enter the market in 2012. In the case of UAE, oversupply has remained a concern, though not to the extent of hampering fresh projects. Sharjah has shown tremendous growth potential with the government making efforts to improve living standards in the Emirate and Dubai continues to be the most attractive tourist destination in the region. The slowdown in Europe played a positive role in reversing tourist flows to the more attractive

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GCC Building Construction and Interiors Overview

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tourist destination in the region. . Dubai recorded among the highest in the world hospitality markets. Its counterpart unterpart Abu Dhabi however, being less equipped with attractions, was unable to reap equally rich harvests, though the situation is likely to be remedied with a number of m museums useums and leisure attractions on Yas and Saadiyat Islands nearing completion in th the Emirate in 2012. Moreover, Abu Dhabi Executive Council completed its strategic funding review for which it had placed a number of mega projects on hold in 2011. These projects too have been resumed such as the Louvre and Guggenheim museum in Saadiyat Island land and the much awaited second terminal at Abu Dhabi international airport. UAEs performance was also significantly bolstered by the announcement of Al Habtoor Groups mega project worth US$ 1.3 billion for the complete redevelopment of the 1979 built M Metropolitan hotel and several other refurbishment projects announced in the hotel sector. Overall UAE hotel markets are likely to overcome their sluggishness and push ahead into 2012, aided by the boost in tourism from expansions in Etihad Airways. Qatar in its hotel development according to analysts seems to be following a trend similar to Abu Dhabi and Dubai wherein it is building its hotels and infrastructure to expand the country to host the World Cup 2022 event. However, it has adopted a more ca cautious utious approach to avoid the oversupply situation faced by the other two, with a more conservative pace of new hotel supply and taking care not to bring in too many hotels without having the necessary supportive tourist attractions and infrastructure in place. Oman has also positioned itself well as a tourist destination both for leisure and business, with its convention and exhibition centre opening in 2012. Bahrain hotel market has been bogged down by the month of political unrest in the region in 2011 fo forcing rcing it to cancel a number of international events such as the Grand Prix, which have badly hit tourism in the country. However, with a gradual resumption of the political situation, hospitality sector could make a quick comeback. Kuwait though not quite as popular as the other tourist destinations in the Gulf due to relatively less endowed attractions and tourism draws, continues to hold its own in terms of business tourism, though it was the only country in the GCC which witnessed demand fall in the fir first st quarter of 2012, with occupancies, RevPar, and average daily rates declining compared to the corresponding period in 2011. However, with increasing government focus on the tourism sector and plans for expansion of its international airport to double its s current capacity of 7 million passengers per year, the situation situation, is likely to

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right itself soon aided by the reversal of tourist flows to the GCC region from the slowing Europe and the rest of the Arab Region.

Hotel Interiors Contracting and Fit-outs Sector

Figure 8 provides the country wide split of interior interiors and fit-out spend in the GCC C Hotel sector for the years year 2011 and 2012.
Figure 8: GCC Hotel Interior Contracting and Fit out Spend (US$ Million), 2011 2011-2012
900

GCC Hotel Interiors and Fit out Spend (US$ Million) by Country, 2011-2012 2011

800 2011 2012

Interiors Contracting and Fit out Spend (US$ Million)

700

600

500

400

300

200

100

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures res Onsite MENA Projects Database www.venturesonsite.com

The positive upturn in the GCC hospitality sector spells a vastly positive outlook and a growing potential for the interiors development, hotel refurbishment and fit fit-outs sector. Hotel projects likely to be completed in the year 2012 will involve an interior spend of US$ 1,650 million, an approximate 22.5 percent of total project costs of US$ 7,334 million, , a healthy growth fro from m US$ 848 million on projects completed in 2011 worth US$ 2,783 million.

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GCC Building Construction and Interiors Overview

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With the GCC economies back on the recovery path and the hospitality sector equipping itself to forge ahead keeping in mind tight budgets amid global economic conditions conditions, , there is also al a growing market for refurbishments. . Hotels are likely to spend heavily on renovation and refurbishment as they look to gain back lost occupancies and counter the competition from the rising supply of new hotels with upgrades upgrade to existing ones proving to o be a growing opportunity for the interiors market. Table 1 provides a list of major hotel project announced in 2012.
Table 1: Major GCC wide Hotel Projects Announced in 2012

Country UAE Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia Saudi Arabia UAE

Project Name Water Discus Hotel in Dubai Jabal Oman Development Phase 3 Al Rashid Hotel Tower Al Khobar Holiday Inn Medina - Al Safwa Park Hyatt Riyadh Grand Hyatt Jeddah Al Muttahed Hotel in Al Khobar Rotana Hotel at the Marina Mall Development

Value (US$ Million) 700 600 216 160 125 125 110 100

Saudi Arabia Oman Qatar Saudi Arabia

Arac Hotel in Al Khobar Dhofar Beach Resort Four point Sheraton Hotel in Lusail

100 100 100

King Abdullah Financial District (KAFD) 80 Hotel Indigo

UAE Kuwait Saudi Arabia

Aloft Hotel in Sharjah

70

Residence Inn by Marriott in Kuwait city 68 Hotel in Madinah 65

Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

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Chapter 3 GCC Residential Sector Overview

Development

One of the most sensitive sectors to the business cycle, the GCC residential sector, with the largest share of the pie in the building construction market has also been one of the worst hit by the global economic slowdown, partly due to the oversupply as a result of the past excesses of the boom era and partly due to the shrinking financial markets that hit the lower tier of the market as well. However, with the Arab Spring bringing ging the inequalities in the housing market and the acute shortage of affordable residential construction across the region to the fore, government focus shifted toward affordable housing schemes and social infrastructure with huge investments by the gover governments nments of Saudi Arabia, UAE, Kuwait and Bahrain in particular, ticular, while Qatar continue continued to build in line with its National Vision 2030 and preparations prepar for the World Cup 2022 FIFA event. UAE has largely been plagued by oversupply in the aftermath of the crash in residential markets in 2009. With ith a fledgling recovery not bringing about much of an appetite for fresh projects in the residential sector, rentals continue to exert a downward pressure on the market. However while apartment rents fell, villa markets outperformed the other residential segments with rentals increasing by an average of 5 percent across developments. Figure 9 provides the summary of residential projects completed in 2011 versus 2012. 201

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Figure 9: GCC Residential Projects Completed in 2011 and Due for Completion in 2012 (US$ Million), 2011 2012
18,000

GCC Residential Projects Completed in 2011 and Due for Completion in 2012 by Country (US$ Million)

16,000 2011 14,000 2012

12,000

Project Value (US$ Million)

10,000

8,000

6,000

4,000

2,000

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

In spite of the lingering oversupply, UAE continues to lead the market in terms of the total residential projects completed in 2011 11 and expected for completion in 2012 with a share of 54 percent of projects completed. Followed by KSA both countries with their social housing schemes are providing a massive fillip to the residential sector. Residential projects worth US$ 15,312 million will be completed in UAE this year followed by Saudi Arabia which has shot ahead significantly in 2012 with likely projects nearing completion worth US$ 13,012 million to be committed to residential development development, , resulting in its share of completed projects of 22 percent in 2011 likely to grow to 39 percent at the cost of UAEs share likely to fall to 46 percent in 2012. Residential development projects such as Al Khobar lakes and large university housing projects have enabled Saudi Arabia to stay ahead and remain unfazed amid the global economic slowdown, backed by its strong, growing demand base and a supportive fiscal policy concentrating on social infrastructure. Qatar markets have been vastly affected by the global economic slowdown that shrunk demand and resulted in

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falling rentals and yields in 2010 and 2011. However, with the new fillip provided by the hosting of the World Cup 2022, strong economic fundamentals and a gro growing wing population, the market stabilized by the last quarter of 2011, with prices likely to bottom out and additional supply to the tune of 5000 units coming into the market in 2012. In Kuwait, t, a market that was badly hit b by the global economic slowdown and stringent laws imposed on shareholding companies from dealing in priva private te residences deterring investment in the residential sector in 2008-09, 09, has subsequently made a strong recovery, with private transactions increasing in the residential market in 2010 and 2011 by as much as 74 percent and 35 percent respectively. Due to a an inherent shortage of supply of developed land and private residential developments and a growing population backing a strong demand, the residential sector is likely to continue the upward trend into 2012, also boosted by the KWD 37 billion (US$ 131.9 bi billion) Kuwait Development Plan of the government to boost developments in this sector. Oman was a late starter in opening up select markets to private investment and due to the relatively small size of the market, was not as badly hit by the economic slowd slowdown own as the other GCC countries. However, prices and rentals did undergo a correction in 2010 and 2011, especially in Muscat and are likely to stabilize and grow on the back of the large and growing private sector employment and expatriate population of the country. Demand across well developed localities such as the Wave, Madinat Qaboos, Qurum, Shatti Al Qurum, and Muscat Hills are likely to be strong propelling growth across the Oman residential sector. Bahrain residential markets were badly hit by the po political litical unrests surrounding the Arab Spring that sharply sha eroded investor sentiments. Oversupply versupply and investor caution continue to keep prices soft, though with the Bahrain government stepping in with massive plans to provide affordable housing to alleviate the unrest among its masses, largely stemming from the inadequate social infrastructur infrastructure, e, the residential market is likely to receive some relief. The government plans include three large residential developments as new cities at East Hidd, East Sitra and Northern Town, expected to make available approximately 23,000 units by the end of 2016. . Private developers however, continue to focus on the higher end of the market in spite of the undersupplied affordable homes segment leading to further oversupply in the premium segment. Analysts estimate an additional 15,900 residential apartments will enter the market between 2012 and 2015, which could put further pressure on rentals and yields.

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Residential Sector ector Interior Interiors Contracting and Fit-Out Out Sector S
Figure 10 provides the country wide de split of interiors contracting and fit out spend involved in the GCC residential sector.
Figure 10: Residential Sector Interiors Contracting and Fit out Spend (US$ Million), 2011 2011-2012
1,800

GCC Residential Interiors and Fit out Spend (US$ Million) by Country, 2011-2012 2011 2012

1,600 2011
Interiors Contracting and Fit out Spend (US$ Million)

2012

1,400

1,200

1,000

800

600

400

200

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

UAE remains the largest market with interior spends of US$ 1,684 million in 2012. 201 An estimated US$ 15.3 billion worth of residential units are expected to complete in the UAE in 2012 with interior contracting and fit outs accounting for approximately 11 percent of total project costs. KSA with US $ 1,431 million and Qatar with US$ 297 million were the second and third largest markets.

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Chapter 4 GCC Retail Development Sector O Overview verview

Growth across the GCC retail sector continues unabated despite the global economic slowdown and the tough period in the building construction industry across the other residential, commercial and hospitality sectors. GCC continues as the leading lu luxury xury destination for retailers prompted by the high disposable incomes and rising standard of living of the population and the strong tax free incentives for consumer spending. The latest AT Kearneys 2012 index of top ranked emerging markets which inclu included the 12th Global Retail Development Index (GRDI) ranked Oman a relatively new entrant with major retail expansion plans among the top 10 apart from the traditional favourite UAE at 7 and also ranked Kuwait 12th and Saudi Arabia 14th among the top 20 gl global retail destinations. According to AT Kearney, these markets have achieved important milestones such as 100th store opening in a third of the time it has taken its developed counterparts and growing at three to four times faster than their mature peers. Tourism has proved to be an important driver as the Arab Spring and the slowdown in Europe have moved tourists ists over to brighter pastures in the GCC, boosting its retail sector in the bargain. Some noteworthy facts about the GCC retail sectors performance are apparent in that Dubai Mall, the worlds most visited shopping centre with over 54 million visitors i in n 2011 witnessed a 35 percent increase in average sales in the period and the Mall of Emirates, UAEs second largest mall recorded the best performance in 2011 since it was founded in 1992. Kuwaits largest shopping centre, the Avenue Mall, features the largest argest number of international brands in the country with two new malls in the pipeline. Oman is being deemed as the new destination for retailers especially specialty and luxury ones. The leading trend in the retail markets is also the focus on private l labels abels as competition heats up and players concentrate on their bottom line. Demand for retail space is set to grow at a rate of 9.5 percent per annum during 2010 to 2012. Leading brands and retailers from world over are clamouring for a share of the GCC retail pie with GLA expansions the norm across these countries. With demand supportive, the retail development sector is growing at a healthy pace and likely to continue its expansion at a rapid pace in the future.

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Figure 11 depicts the retail construction projects completed in 2011 and those that are expecting completion in 2012.
Figure 11: Retail Construction Projects Completed in 2011 and Due for Completion in 2012 (US$ Million), 2011 2011-2012
1,200

GCC Retail Projects Completed in 2011 and Due for Completion in 2012 by Country (US$ Million)
2011 2012

1,000

800

Project Value (US$ Million)

600

400

200

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

The growing markets of Kuwait and Qatar are the emerging leaders in terms of projects completed in the retail sector in 2012 overtaking taking UAE the erstwhile leader of 2011, with major expansion of Kuwaits largest Avenue Mall Phase 3 due for completion in 2012 and Qatar lining up a number of retail expansions due for completion in 2012 to spruce up the country for the World Cup 2022 ev event. Kuwait retail sector is growing at a healthy CAGR of 8 percent, in spite of a small population, mainly on the back of a large expatriate composition of population and strong demographics and the governments recent focus on tourism and retail expansions. Qatar, the richest country in the world in terms of per capita GDP and the fastest growing economy in the GCC, is a natural haven for retailers with its growing retail space and growing disposable incomes attracting luxury retailers by the hordes. Saudi di Arabia is also an emerging retail destination with Jeddah and Riyadh accounting for bulk of the retail space available in the region after Dubai, which shares the top position with London for the maximum presence of international retailers as of Page: 26

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2011. Oman man too has gradually made the transformation from a small store based economy to malls and modern retail formats as it opens up to tourism and with planned expansion of its retail sector, is also likely to help growth of its building construction sector a and nd economy at large. Bahrain with its political unrest and heavy erstwhile reliance on the financial sector making it the worst hit amid the global economic slowdown is likely to have subdued growth prospects in the near future.

Retail Development Interi Interiors Contracting and Fit-Out Sector

Figure 12 provides the country wide split of interior interiors and fit out spend involved in the development and refurbishment of the retail sector in GCC for the year 201 2012.
Figure 12: GCC Retail Interiors Contracting and Fit Fit-out Spend (US$ Million), 2011-2012
250

GCC Retail Interiors and Fit out Spend (US$ Million) by Country, 2011-2012 2011

2011

2012

Interiors Contracting and Fit out Spend (US$ Million)

200

150

100

50

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

The interior contracting and fit-out out developments in the retail sector is estimated to earn US$ 768 million on projects worth US$ 3,413 million expected to complete by 2012. Kuwait with an a investment of US$ 225 million on the expected completion of the Phase 3 of the Avenue Mall, its largest mall and Qatar with projects such as Barwa City Phase 1 Mixed use development toward attracting visitors for the World Cup

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2022 event have bagged the largest shares of the retail interior contracting and fit out pie in 2012, surging ahead of the traditional leaders namely Saudi Arabia and UAE with investments of US$ 170 million and US$ 144 million respectively expected toward interior contracting and fit outs in 2012 .

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Chapter 5 GCC Healthcare Sector Overview

Sustainable balanced economic development across all sectors, efforts to reduce dependence on the hydrocarbon sector, increased Public Private P Partnership (PPP) investments in the healthcare sector, the healthy growth in incumbents visiting the GCC countri countries for medical treatment and a host of other drivers have driven the GCC government overnment to rev up its existing healthcare set up to include state of art hospitals and health care centres boasting advance advanced medical equipments and professional healthcare personnel. personne Significant announcements s in this arena in recent years include that of the Saudi Arabian Ministry of Health to procure more healthcare services from the private sector health providers to improve the p provision of healthcare services. The Ministry of he health has in 2012 signed a host of healthcare contracts worth over SR 4 billion. The population of the Kingdom is estimated to be around 25 million and currently there are 22 beds for every 10,000 people. Following Saudi Arabia, UAE too aims to rectify the current lop sided supply demand ratio in healthcare services marked by an oversupply of medical services in certain specialities and increasing the efficiency of public and private healthcare facilities particularly in the capital cities of Abu Dhabi and Dubai. ubai. In line with the above the Dubai Health Authority (DHA) had announced a survey to collect comprehensive data from its private and public hospitals, poly clinics, Dubai Healthcare city and diagnostic and primary healthcare centres. Following the largest st markets of UAE and Saudi Arabia, others such as Qatar, Oman, Kuwait and Bahrain too have announced ambitious developmental programs including the construction and refurbishment of their existing healthcare systems. Figure 13 depicts the medical construction projects completed in 201 2011 and those that are expecting completion in 2012.

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Figure 13: : GCC Medical Projects Completed in 2011 and due for completion in 2012 by country, (US $ Mn)
3,000

GCC Medical Projects Completed in 2011 and Due for Completion in 2012 by Country (US$ Million)
2011 2012

2,500

2,000
Project Value (US$ Million)

1,500

1,000

500

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

As of September 2012, the growing market of Qatar is the emer emerging ging leader in terms of project completions with total healthcare projects ojects worth US$ 2.4 billion expected to witness completion by the year end thus representing a 41 percent share of the total GCC medical projects expected for completion in 2012. This phenomenal rise in the healthcare spend may be attributed to the Govern Government ment finally taking initiatives to upgrade its healthcare system which had come under strain for having the least number of hospital beds of 1.4 per thousand amongst all the GCC nations. The recent massive overhaul of the nations healthcare system witnessed a staggering rise in Qatars ranking as the highest per capita healthcare spender in the Middle East in 2011. . According to statistics released by National Health Accounts (NHA), Qatar spent QR 9.5 billion (US$ 2.6 billion) n) on healthcare in 2010, while t this his rose by 27 percent to QR 12 billion (US$ 3.2 billion) in 2011.

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Following Qatar, Saudi Arabia and UAE are the second and third largest markets with healthcare projects worth US$ 1.8 billion and US$ 1.49 b billion, respectively, expecting completions completion in 2012 and ranked the second and the third largest spenders of healthcare in Middle East with a 31 percent and 25 percent shares, respectively, of total projects expecting completion completions in 2012. The other three nations of Oman, Kuwait and Bahrain, despite focusing their efforts on developing their healthcare systems systems, have had limited budgets thus accounting for a meagre 3 percent, 1 percent and 1 percent percent, , respectively, of the total value of healthcare project completions.

Healthcare Sector

Development opment

Interiors

Contracting ntracting

and

Fit Fit-Out

Figure 14 provides the country wide split of interior interiors and fit out spend involved in the development and refurbishment of the medical sector in GCC for the year years 2011 and 2012.
Figure 14: GCC Medical Interiors teriors and Fit out Spend (US$ Million) by Country, 2011 - 2012

GCC Medical Interiors and Fit out Spend (US$ Million) by Country, 2011-2012 2011
250 2011 2012

Interiors Contracting and Fit out Spend (US$ Million)

200

150

100

50

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

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Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

The interiors contracting and fit-out out developments in the heal healthcare sector is estimated to earn US$ 474 million on projects worth US$ 5,922 million expected to complete by 2012. Qatar with an investment of US$ 192 million on the expected completion of projects worth US$ 2,400 million and Saudi Arabia with investments worth US$ 145 million have bagged the largest shares of the healthcare interiors contracting and fit out pie in 2012, surging ahead of UAE and Oman investments of US$ 119 million and US$ 13 million respectively, expected toward interior interiors contracting and fit outs in 2012.

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Chapter 6 GCC Educational Sector Overview

Development

Despite witnessing several challenges following severe volatility in oil prices and the political unrests leading to protracted growth prospects in 2009 and 2010, , the GCC nations had surged ahead with its need for a balanced sustainable economic development based on their strong fundamentals and planned provisions for standard educational tional and healthcare facilities, setting aside significant investments invest in the construction and upkeep of its educational and healthcare systems in 2011 2011. This is spending trend continues into 2012 with several projects initiated earlier reaching completion and new additions being initiated in the year. Figure 15 depicts the country wise split educational construction projects completed in 2011 201 and those that are expecting completion in 2012.

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Figure 15: : GCC Educational Projects completed in 2011 and due for completion in 2012 by country, (US$ Million)
9,000

GCC Educational Projects Completed in 2011 and Due for Completion in 2012 by Country (US$ Million)
2011 2012

8,000

7,000

Project Value (US$ Million)

6,000

5,000

4,000

3,000

2,000

1,000

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

The Kingdom of Saudi Arabia ranked the largest educational investor in GCC with educational developmental projects worth th US$ 3.26 billion expecting completion in 2012. The country had a significant amount of projects worth US$ 7.78 billion that witnessed completion completions in 2011 thus mirroring the KSA governments ambitious plans to develop human resources, infrastructure and social programs. Saudi Arabia plans to adopt the largest budget in the countrys history in 2012, with a 19 percent increase in expenditures compared to 2011. The largest portion of the budget has been allocated to education, health and municipal services. Saudi Arabia plans to adopt a landmark budget in 2012, with expenditure estimated at $184 billion, of which US$ 45 billion representing about 24 percent of the total spending, will be allocated to education and training. The budget includes plans to build 742 new schools in addition to the 2,900 already under construction, and 2,000 existing schools will be refurbished. These funds will also support the establishment of an electronic college and 40 new colleges; the development existing

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universities; and an n increase in the number of scholarship programs that allow Saudi students to study abroad. Following Saudi Arabia, , Qatar is the second largest country in the region with educational developmental projects worth US$ 1.05 billion reaching completion in 2012. The he Qatari Government too has allocated a sizeable budget expenditure of QR 22 billion in funding educational development programs including the construction of new schools in addition to refurbishment and development of universities besides increasing the he scholarship programs. Kuwait ranks third in terms of educational project completions with total projects worth US$ 503 million witnessing completion this year. This is followed by UAE and Oman with projects worth US$ 289 million and US$ 225 million million, respectively. pectively. Still reeling under the aftermath of political instability experienced in 2011 2011, , Bahrain has a moderate amount of educational development projects worth US$ 56 million expecting completion in 2012.

Educational Sector

Development

Interior Interiors

Contracting

a and

Fit-Out

Figure 16 provides the country wide split of interior interiors and fit out spend involved in the development and refurbishment of the Educational development sector in GCC for the years s 2011 and 2012.

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Figure 16 GCC Educational Interiors and Fit out Spend (US$ Million) by C Country, 2011-2012
GCC Educational Interiors and Fit out Spend (US$ Million) by Country, 2011-2012 2011 2012
700 2011 600
Interiors Contracting and Fit out Spend (US$ Million)

2012

500

400

300

200

100

Bahrain Kuwait Oman Qatar Saudi Arabia UAE

Source: Ventures Onsite MENA Projects Database www.venturesonsite.com

The interiors contracting and fit-out out developments in the educational development sector is estimated to earn US$ 431 million on projects worth US$ 5,392 million expected to complete by 2012. 201 Saudi Arabia with an investment of US$ 261 million on the expected completion projects worth US$ 3,264 million and Qatar with investments worth US$ 84 million on the expected completion projects worth US$ 1,055 have bagged the largest shares of the educational development interiors contracting and fit out pie in 2012, surging ahead of Kuwait and UAE investments of US$ 40 million and US$ 23 million million, respectively, respectively expected toward interiors contracting and fit outs in 2012 2012.

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Chapter 7 GCC Import Import-Export-Re Re export Statistics of Major Interior Items

With a steady rise in the attractiveness of GCC as a construction market, the countries in the GCC have also acted as a growing market for Interior Contracting and fit outs. The trade statistics of three interior categories, namely, furniture, lamps and li lighting ghting fittings and bathroom ware are explained below.
Figure 17: Import, Export and Re-export export of Interior Item Items-Furniture (US$ Million) by Country
Import, Export ad Re-export Re export of Furniture (US$ Million) by Country
UAE (2010) 215,406.15 245,696.48 813,370.72 268,947.02 1,380.20 17,502.73 79,737.62 5,010 12,230 225,228 21,388.56 32,158.17 599,306.62 2,338.92 22,971.39 87,311.37 100,000.00 200,000.00 300,000.00 400,000.00 500,000.00 600,000.00 700,000.00 800,000.00 900,000.00 Value (US$ Million)

Qatar (2010)

Oman (2010)

Re-export export Export Import

Kuwait (2008)

KSA (2010)

Bahrain (2010)

Source: United Nations Commodity Trade Database, http://comtrade.un.org/

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Figure 18: Import, Export and Re-export export of Interior Items Items-Lamps Lamps and Lighting Fittings (US$ Million) by Country
Import, Export and Re-Export Re of Interior Items-Lamps Lamps and Lighting Fittings (US$ Million), by Country
UAE (2010) 98,318.49 104,718.87 381,017.69 153,858.68 871.25 925.24 52,510.28 1,732.76 1,732.96 86,310.32 5,337.87 12,839.48 232,454.16 909.22 1,297.02 35,397.01 0 50,000 100,000 150,000 200,000 250,000 Value (US$ Million) 300,000 350,000 400,000 450,000 Re-export Export Import

Qatar (2010)

Oman (2010)

Kuwait (2008)

KSA (2010)

Bahrain (2010)

Source: United Nations Commodity Trade Database, http://comtrade.un.org/

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Figure 19: Import, Export and Re-export export of Interior Items Items-Plastic Plastic Bathroom ware (US$ Million) by Country
Import, Export and Re-export Re of Interior Items-Plastic Bathroom ware (US$ Million) by Country
7,516.87 UAE (2010) 17,196.39 40,729.40 9,170.25 40.81 46.01 3,300.36 89.75 1,516.87 10,048.33 461.60 1,110.14 34,612.58 31.68 Bahrain (2010) 3,311.50 5,000.00 10,000.00 15,000.00 20,000.00 25,000.00 Value (US$ Million) 30,000.00 35,000.00 40,000.00 45,000.00 7,495.09

Qatar (2010)

Oman (2010)

Re-export Export Import

Kuwait (2008)

KSA (2010)

Source: United Nations Commodity Trade Database, http://comtrade.un.org/

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Figure 20: Import, Export and Re-export export of Interior Items Items-Ceramic Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, etc., (US$ Million) by Country
Import, Export and Re-export export of Interior Items-Ceramic Items Ceramic sinks, wash basins, wash basin pedestals, baths, bidets, etc.,(US$ Million) by Country
23,856.51 UAE (2010) 49,329.32 45,533.51 21,547.11 42.73 2,047.46 15,887.98 1,037.41 1,037.41 22,130.39 1,329.87 KSA (2010) 9,073.35 48,950.20 144.14 144.14 8,678.93 0 10,000 20,000 30,000 Value (US$ Million) 40,000 50,000 60,000 Export

Qatar (2010)

Oman (2010)

Re-export

Kuwait (2008)

Import

Bahrain (2010)

Source: United Nations Commodity Trade Database, http://comtrade.un.org/

GCC markets have also witnessed a gradual growth in competencies leading to greater re re-exports, as GCC designed furniture and fit outs have become globally popular for their design and quality. UAE is the largest market for imports, exports and re-exports exports owi owing ng to the large captive construction market offered by it and its visibility among foreign investors on the global map as a major retail and commercial destination. Qatar is also a growing market for imports of interior items backed by its bid to host glob global events and create infrastructure on par with global standards, including the World Cup FIFA 2022 which has generated demand for interiors from world over over. . Oman with its focus on tourism has also a reasonably growing share in imports and re-export of interior erior items though at a smaller scale than the UAE. Overall, the GCC economies backed by their large hydrocarbon based wealth and strong economic fundamentals have proved to be a healthy oasis for investors in the construction and interiors industries in terms of trade.

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Conclusion
The GCC building construction market is an emerging oasis of opportunity for the interiors contracting and fit out sector. As these markets put the worst behind them, and fuelled by massive government spending on social infrastructure ructure and development projects, countries such as Saudi Arabia, UAE and Qatar are leading the favourite destinations of investors worldwide across the retail, residential, hospitality and commercial sectors. While economies across the globe are strugglin struggling g with the aftermath of the economic meltdown and the neighbourhood simmers under the socio socio-political political unrest of the Arab Spring, the GCC is fast emerging as a safe haven for investors, with its economically strong fundamentals and a recovering real estate market that spells opportunity for the interiors contracting and fit outs sector albeit at a more cautious pace than the boom period prior to 2009 2009.

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