Middle East Construction Projects Face Infrastructure Challenges, Report Says

Dec. 13, 2013

The Middle East will experience much construction activity during the next two decades but will face complex infrastructure challenges, according to a report from Arcadis, an international asset design and consultancy firm in a report titled “Middle East Major Construction Programs – Mitigating the Risk.”

The report found that more than 117 major construction projects — defined as projects totaling more than $1 billion and delivered in a relatively short period of time — are planned for completion by 2030 costing more than $1 trillion. However, the completion of the projects comes with risks that could cause some failures.

Solutions to help mitigate the risks are outlined in the Arcadis report, which focuses on projects in United Arab Emirates, Qatar, Saudi Arabia, Oman, Kuwait and Iraq.

“The Middle East is experiencing unparalleled economic and social development due to the large volume of mega projects planned and underway,” said Alistair Kirk, head of infrastructure, industry and utilities, Middle East, at Arcadis. “These programs, particularly the more ambitious mega-cities, are at the forefront of these enormous infrastructure developments which will bring diversification, foreign and domestic investment and job creation on an unparalleled scale. However, with demand currently outstripping supply for human capital and material resources, there is risk of inflationary rises to secure resources in a very competitive and intense market.”

For more information on the report, visit www.arcadis.com.