GCC states need to change procurement systems, approach on investments to improve project awards

DUBAI: Countries in the six-member Gulf Cooperation Council (GCC) should overhaul procurement systems and processes and take a different approach on capital investments to improve the region’s environment regarding project awards.
“Dubai has proven that it can be done successfully, and provides a model for how this can be implemented. The other GCC states must now rise to the challenge,” regional projects tracker MEED Projects said in one of its report on Monday.
The industry monitor noted that just $108 billion worth of projects were signed in the GCC last year, $10 billion less than in 2016, and hopes that rising oil prices and more public spending would translate into higher project expenditures were quashed when major pipelined projects failed to take off.
“There was no better illustration of the variability of the projects market between geographies and sectors than in Dubai’s performance last year. The emirate was the saving grace of the UAE market, and saw almost as much work awarded ($29 billion) as the next four largest regional markets combined,” MEED Projects said.
Overall, the UAE awarded $43.5 billion worth of contracts last year, higher than 2016 and 2015.
“Dubai’s performance for the year highlighted how markets can prosper regardless of the crude price. The GCC projects market does not have to be inextricably linked to oil, but what 2017 has shown is that untangling it from crude is proving to be more complex than anticipated,” MEED Projects added.
Nakheel this week signed a 4.2-billion dirham contract for the construction of Deira Mall, seen to be UAE’s largest in terms of leasable space, with United Engineering Construction. Groundbreaking would start by March and the project was expected to be completed in 2021.
Dubai also set a March tender deadline for the 300-meter-long, 22-meter-wide signature Infinity Bridge. The crossing will be built near to the mouth of the Creek and is part of the larger Shindagha Corridor scheme that runs through Bur Dubai and Deira.