Are Middle Eastern countries worried about Oil Prices?
Much of the world is anxiously watching the price of oil, and the effect it has on not only the related construction industry but the regional and global economy also. There are however plans and strategies in place to mitigate the effects of these circumstances.
The Arab Petroleum Investment Corporation better known as APICORP has stated that the Middle Eastern and North African Region is set to spend $755 Billion USD in the next four years on energy projects. The bulk of this spend will be coming from Saudi Arabia and the United Arab Emirates, combining together to amass $243 Billion USD.
In the past few months, construction companies have stressed concern over the decline of oil prices and although not specifically concerned for the overall stability of the region, it has restricted the growth of recruitment in the MENA region, which had seen significant growth in the past few years. The projections from APICORP will be useful knowledge for construction companies throughout the Middle East in backing current and future civil engineering projects and building projects.
Oil prices in OPEC countries have traditionally had a knock on effect with investment from overseas in construction and infrastructure projects. The global financial crisis of 2008 seriously affected amount of foreign investment into the domestic construction market in the Middle East. The results of the recent APICORP report will assist in the industries belief that there is financial backing and planning to continue the GCC and MENA’s construction and infrastructure growth.
A significant plus in the ‘crisis’ that is occurring with oil and gas prices is that governments in the Middle East and Northern Africa will adopt to Dubai’s recent thinking in the transition of dependence from oil and gas to other sources of revenue such as tourism. The statistics of $755 Billion USD in the next 4 years and of $116 Billion USD of this coming from the UAE will reassure companies to continue their planned projects and more importantly to continue expanding their teams of employed professionals. Job seekers are asked to keep a close eye on the new Maxim Recruitment website and sign up for job alerts in the areas of interest such as project management, commercial management, quantity surveying, health and safety, planning and engineering.