Construction

High levels of state and private sector investment will drive double-digit growth in Malaysia’s construction industry this year with momentum likely to be maintained into 2015 as more infrastructure projects roll off the drawing board.

Real estate prices in Qatar hit record highs in June after rising 28.9% year-on-year (y-o-y) according to the Real Estate Price Index (REPI) published by the Qatar Central Bank (QCB), its most recent data. The average prices for land, commercial and residential properties in June were 20% higher than the previous peak of September 2008, the central bank said.

Hopes are rising that a $4bn project to widen the Suez Canal will provide Egypt with a boost in construction activity, while also significantly raising revenue in the longer term.

Kuwait is seeing significant activity in its construction sector this year, with contracts worth $17.5bn already signed or on offer. There are also a number of large-scale projects already underway and at the stage of moving from the drawing-board to the development stage, adding further momentum. However, raw material supplies, including cement, are in short supply and could cause delays and cost increases.

A renewed focus on developing the tourism and industrial sectors has driven a construction boom in Ras Al Khaimah (RAK) and led to the development of a host of industrial, residential, commercial and retail spaces. To support this growth, the government has at the same time invested in basic electricity, water and sewer networks.

Reverberations are expected in the Philippine cement industry from the $54bn planned merger of Lafarge and Holcim as the two companies plan to restructure their operations in the Philippines which could unravel an even bigger shake-up of the local industry.