Governments across the GCC plan to invest US$1 trillion to develop their infrastructure according to a recent report by Deloitte. Of these countries, Nabil Salim, AAA Construction Equipment Director, emphatically states that Qatar and Saudi Arabia are the two countries with the most opportunity to attain a favorable return on investment.The report by Deloitte highlights the investments made by the Saudi Arabian government including the estimated US$400 billion plans to build schools, houses, universities, new railway infrastructure, airport extensions and road improvements.
Deloitte highlights the investments made by the Saudi Arabian government including the estimated US$400 billion plans to build schools, houses, universities, new railway infrastructure, airport extensions and road improvements
Furthermore, with the hosting of the 2022 FIFA World Cup in Qatar, projects planned and underway are estimated to be US$230 billion, reports Deloitte.
The significant investments being made across the GCC provide both positive and negative trends in the demand and supply of heavy machinery in the region.
In terms of negative trends, Salim stated that the high level of competition results in a vast amount of low quality and lower standard equipment flowing into the region.
"This has been a major threat to reputed manufacturers," said Mr. Salim. "Additionally, some customers are now looking for used equipment because of the huge investments required to buy heavy machineries."
Steady growth can be seen in the heavy machinery market and a lot of projects have been awarded in the GCC, particularly UAE, Saudi Arabia and Qatar throughout the year
Salim further continued to highlight the positive trends stating that a steady growth can be seen in the heavy machinery market and a lot of projects have been awarded in the GCC, particularly UAE, Saudi Arabia and Qatar throughout the year. Additionally, the construction market which collapsed in the UAE, now shows reasonable growth.
The company, strengthening its presence in the UAE has set up its Abu Dhabi subsidiary AAA Construction Equipment LLC., and AAA Construction Equipment Rental Establishment to capitalize on current and future opportunities in the UAE's construction sector.
Press Release
14 September
