Construction

The government’s approval of a bond release over the next two years to help fund major infrastructure projects should provide a much needed boost to the construction housing and transport sectors, with affordable housing and road connectivity cited as top policy concerns.

The construction sector in Papua New Guinea (PNG) has enjoyed rapid growth in recent years. The industry, worth just PGK265.6m ($126.38m) in 1994, is now one of the economy’s largest contributors to GDP, valued at PGK4.81bn ($2.29bn) in 2011. But while annual growth has averaged 17.9% since 2007, there are troubling indicators of an overstretched economy.

The construction industry in Kuwait is poised for significant growth on the back of major government investment in infrastructure projects and social facilities, according to data published in August. However, the continuing lack of an approved 2012 budget has effectively meant that the government cannot sign off on any new projects.

The construction sector will be operating in a new environment starting next year when building regulations mandating the use of eco-friendly best practices are due to be implemented. However, the shift toward greater sustainability may prove challenging for some.

In the wake of the global financial crisis, Dubai’s construction sector has been slow to recover, with a near freeze on new developments. However, there are signs that the industry is beginning to move forward again.

The government is placing renewed attention on tackling the housing deficit, with an emphasis on private sector investment, better urban planning and more low-cost homes. Two recently launched projects that dovetail with these aims could point the way for construction development.