New construction contracts worth US$ 140 bn expected to be awarded across the GCC in 2019
Dubai, UAE: Buoyant oil prices and a strong resurgence in the GCC’s economic growth prospects are expected to fuel renewed growth across the region's construction industry, according to a white paper published by Ventures Onsite, leading analysts of the region's construction industry.
The report indicates that the region's reviving economies, riding on oil prices propped up by strong global demand, would fuel further outlays in construction sector, including fresh investments in large scale infrastructure and commercial projects.
This in turn is expected to fuel strong demand for the latest in fire protection and safety systems, cutting edge security infrastructure as well as construction-related safety, security and personal protection equipment and solutions. The resurgence in the industry is expected to be directly reflected at the upcoming Intersec 2019, the definitive trade platform for the safety, security and fire protection industries in the region.
The International Monetary Fund (IMF) estimates that the GCC’s GDP is expected to increase by 1.9% in 2018 and 2.6% in 2019, overcoming a dip of 0.2% in 2017. Despite improvements in the fiscal situation, most GCC countries are continuing economic diversification and reforms that are required to improve business environments and encourage inward investment.
While the UAE and Kuwait are set to post fiscal surpluses in 2018 due to the recovery in oil prices, Saudi Arabia (KSA) is expected to register a modest deficit, according to analysts. Bahrain and Oman are likely to continue to report mid to single-digit deficits, keeping their balance sheets under pressure.
According to the Ventures Onsite intelligence, prepared specifically for Intersec, the regional construction sector is among the major indicators of economic development, which has improved over the last two years by approximately 7% (from 32% to 39%), according to Pinsent Masons' GCC Construction Survey.
Rising oil prices and increased government spending are powering GCC construction sector’s demand, with contractor awards across the region’s building, infrastructure and energy markets expected to increase from US$ 124 billion in 2018 to US$ 140 billion in 2019. The total GCC project value across the building, infrastructure and energy sectors is estimated to be worth and incredible US$ 3.6 trillion.
The continued increase in population, ongoing investments in infrastructure and energy, as well as upcoming mega events such as Dubai’s Expo 2020 and the FIFA World Cup 2022 are other factors that play a role in driving up the GCC’s construction activity.
Ventures Onsite estimates that the building construction market (US$ 69 billion) is likely to constitute that largest segment followed by the energy (US$ 38 bn) and infrastructure (US$ 17 bn) markets. The UAE, Saudi Arabia and Qatar will continue to remain the top three markets in the GCC construction industry.
"The resurgence in the construction industry is expected to be strongly reflected by an increase in demand for related safety, security and fire protection equipment and solutions, the latest range of which are being showcased at Intersec 2019, by leading international manufacturers," said Andreas Rex, Show Director of organizers, Messe Frankfurt Middle East. "The exhibition continues to be the platform of choice for industry professionals and trade buyers to source and identify producers and suppliers of safety, security and fire protection equipment, as well as a great show window of the latest trends and cutting edge solutions available in the global market."
Intersec regulars IDIS, will be back in 2019 with their latest surveillance systems and monitoring equipment. Harry Kwon, General Manager, IDIS Middle East and Africa said: "We will have important innovations on show including our flagship DirectIP solution, which is a full array of IP cameras including full-HD and 4K capability. We also will display our powerful 8400 series network video recorders, network accessories and monitors as well as our IDIS Compact Solution lineup, which will debut IDIS Dynamic Privacy Masking in order to comply with privacy regulations. The IDIS Center is typically expected to deliver up to 50% cost savings in comparison with server-based solutions," Kwon said.
Meanwhile, Abhay Joshi, Global Sales Head for Matrix Comsec, specialists in Access Control Systems said: "Intersec provides us with a great opportunity to showcase out security products catering to the Middle Eastern market. This year we will showcase our Mobile Based Access Control solution, with the help of which a user can either scan the QR Code or use the COSEC APTA mobile app to mark their attendance.
"We will demonstrate our feature-rich Time-Attendance and Access Control solutions that can be deployed on premises with Cosec Centra and on cloud with Cosec Vyom. We are also planning to display the Cosec Door FMX with multispectral fingerprint sensor which reads surface as well as sub-surface of a finger, making it suitable for dry, wet, elderly or oily hands. Alongside, we will showcase Video Management software with recently launched Network Video Recorders and Professional IP Cameras," Joshi added.
Ultitec, will be at Intersec 2019 with a range of industrial protection gear. According to General Manager Jason Lin, the company will use the Intersec platform to introduce their range of industrial protective clothing to a large pool of potential buyers from across the region. "We will showcase industrial protective clothing for particulate protection, flame retardant, liquid protection and chemical protection, with professionals to explain product application knowledge, fabric tailoring and design, safety performance tests etc.," Lin said.
Intersec 2019, will be held at the Dubai International Convention and Exhibition Centre from January 20-22, 2019. The exhibition continues to be the premier trade platform for the safety, security and fire protection industries and will cover the following segments: Commercial Security, Safety & Health, Homeland Security & Policing, Physical & Perimeter Security, Information Security, Fire and Rescue and Smart Home & Building Automation.
The annual showpiece will feature a revamp refreshed line-up of conferences, including a three-day Intersec Future Security Summit raising key issues on Artificial Intelligence, security Integration, emergency preparedness and response, data protection, IoT and much more.
Returning is the SIRA (Security Industry Regulatory Agency) Forum, with the latest updates in security law and industry regulations in Dubai, while a one-day Fire Safety and Protection Conference will involve authorities, fire chiefs, engineers, fire fighters and emergency response professionals.
Returning popular features in 2019 include the Drone Zone, an Outdoor Demo Area, a Smart Home Pavilion and the Safety Design in Buildings Pavilion. More than 150 exhibitors will be participating for the first time, while Canada, China, Czech Republic, France, Germany, Hong Kong, India, Italy, Korea, Pakistan, Russia, Singapore, Taiwan, UK, and the USA comprise the 15 country pavilions.
Intersec 2019 is held under the patronage of His Highness Sheikh Mansoor bin Mohammed bin Rashid Al Maktoum, and supported by the Dubai Police, Dubai Police Academy, Dubai Civil Defence, SIRA, and the Dubai Municipality. More details about the exhibition is available at: www.intersecexpo.com.