(MENAFN-Khaleej Times) Following the boom that 2013 saw, the UAE hydrocarbons projects market shows signs of continued vibrancy over the next 12 months
Meed Projects has revealed that the UAE hydrocarbon projects market looks to be a lucrative one for the year ahead, anticipating a total of $11 billion worth of contracts to be awarded in the coming year, across 27 projects — the same value of projects as 2013.
Following the boom that 2013 saw, the UAE hydrocarbons projects market shows signs of continued vibrancy over the next 12 months.
This follows a four year cycle between 2009 and 2012 when a huge number (55) and value ($45 billion) of contracts were awarded in 2009 and 2010, followed by two years when far fewer and smaller contracts (35, $8 billion) were awarded.
This reflected financial opportunism, as clients took advantage of the global economic crisis to negotiate hard and award a large amount of work upfront at prices advantageous to them. This year and last sees a return to stability and more normally distributed awards.
Meed Projects expects that the majority of upcoming awards will be in the oil sector, followed gas, with Abu Dhabi naturally being the most active in terms of awarding contracts.
The contractor landscape witnessed a major shift in 2013. In each of the from 2009 to 2012, the ranking of contractors by value of contracts won was dominated by South Korean companies. Whilst two of the top 10 positions were held by South Koreans (Daewoo and Hyundai E&C), in the remaining 20 contracts, no South Korean company was represented. European and local companies, notably Petrofac of the UK (ranked first) and National Petroleum Construction Company from Abu Dhabi (ranked third), returned to favour, participating in 19 of 22 winning bids.
“The outlook for this year is positive with as much business scheduled for award as last year,” said Julian Herbert, director of Meed Projects.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.