The Middle East

Abu Dhabi’s construction sector appears set to return to near-full capacity, with the government announcing it is reactivating a number of major development projects and stepping up spending on infrastructure development. In late January, the government unveiled its revised construction programme, putting a number of formerly stalled projects on the top of its investment agenda.

With the new year underway, things are already looking up for Ras Al Khaimah’s (RAK) construction sector. Although financial results from contractors and materials suppliers reflect the economic impact of instability in key markets during 2011, progress on recent projects, announcements of new infrastructure developments and trickle-down effects of a rising tourism industry all pointing toward expansion for the sector.

Jordan’s reputation for political and social stability has led to a rise in the number of international students choosing the Kingdom for their university education despite concerns over regional unrest. This trend is strengthening Jordan’s efforts to carve out a niche for itself as a regional education hub and could also help the country to tackle its growing budget deficit.

Bahrain is rolling out a series of new health care facilities, with both the state and the private sector looking to improve existing medical services and expand treatment options. On February 6, Bahrain opened it latest health facility, the 312-bed King Hamad University Hospital (KHUH).

As the overall economy continues to pick up steam, Qatar’s insurance sector looks set to benefit greatly, with strong growth and profits predicted for 2012 and beyond. However, for the sector to truly grow, the industry is conscious that it needs to encourage greater uptake of policies.

The retail sector appears set for an extended period of solid growth, thanks to Saudi Arabia’s expanding economy and higher domestic spending power. The industry, however, may have to act quickly to redress a few challenges, such as staffing shortages and the need to broaden the appeal of some of the Kingdom’s large shopping complexes.