The construction activity index in the region reached 24 in the second quarter of 2024, according to the Royal Institution of Chartered Surveyors.
A quarterly report issued by Royal Institution of Chartered Surveyors(RICS) said the construction sector in the Middle East and Africa (MEA) region continued to grow strongly during the second quarter of 2024, despite some financial challenges and inflationary pressures.
The report explained that the construction activity index in the Middle East and Africa region reached 24 in the second quarter of 2024, which represents a slight decline from 26 in the first quarter, but is still within the expansion range.
This is the fourteenth consecutive positive reading for the region, at the quarterly level.
Saudi Arabia tops the world construction activity index
Leading Kingdom of Saudi Arabia The scene was strong, with the construction activity index recording the highest reading in the world at 64, although it was down from the first quarter’s reading of 72.
As for The United Arab Emirates It also witnessed strong growth, as the index rose to 54.
Mauritius also stood out with a strong positive reading of 57.
Qatar, Bahrain record negative readings after World Cup
In contrast, Qatar and Bahrain recorded negative readings, at -28 and -8 respectively, reflecting the decline in activity in these two countries after hosting the World Cup in Qatar.
Strong readings for new business inquiries in Saudi Arabia and the Emirates
The report also noted an increase in new business inquiries during the second quarter, with net balance rising to 20% from 15% in the first quarter.
And I recorded Kingdom of Saudi Arabia, and the UAE, saw strong positive readings in this regard, at 69% and 54% respectively.
Infrastructure and private housing are the fastest growing sectors.
The Royal Institution of Chartered Surveyors (RICS) forecast in its report that growth will continue in all major sectors over the next twelve months, with the infrastructure sector topping the growth indicators, with an expected net growth of 38%.
The private housing sector also stands out, with strong growth forecasts of 32% compared to the current reading of 12%.
The most prominent challenges facing the construction sector in the region
Despite these positive indicators, according to the report, financial constraints and material costs remain major challenges facing the sector in the region, as 80% of survey participants indicated that financial constraints hinder activity, while 77% indicated high material costs.
These figures reflect the strength and continuity of the construction sector in the Middle East and Africa region, despite the existing economic and financial challenges, indicating the flexibility and ability of this sector to adapt and grow in the face of difficulties.
