Construction World February 2020

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2019’S ‘CONSTRUCTION MEGA CITIES’ Today, more than half of the world lives in an urban area. By 2050, this number is expected to increase to some two-thirds of the world’s population, according to the United Nations. While this may lead to overcrowding in cities, and overuse of resources, it also presents companies in the construction industry with major opportunities for growth.

markets. The rapid growth of cities in the emerging regions UHͥHFWV ERWK DERYH DYHUDJH SRSXODWLRQ DQG SHU FDSLWD *'3 JURZWK 7KH SRSXODWLRQ RI WKRVH HPHUJLQJ UHJLRQ FLWLHV ZLOO UHDFK DQ HVWLPDWHG PLOOLRQ E\ DW DQ DQQXDO LQFUHDVH RI IURP PLOOLRQ LQ $W WKH VDPH WLPH *OREDO'DWD SURMHFWV WKDW WKH real GDP per capita (measured in real terms) in these emerging XUEDQ FHQWHUV ZLOO LQFUHDVH E\ IURP 86' WR 86' EHWZHHQ DQG ̹ *KR]]L DGGV ̸5HͥHFWLQJ WKH YDULHG OHYHOV RI HFRQRPLF VL]H WKHUH are major differences among the 50 ‘Construction Mega Cities’ in WHUPV RI WKH YDOXH RI WKH SURMHFW SLSHOLQHV FRPSDUHG WR WKH VL]H RI the economies. Some major cities in the Middle Eastern Gulf states, namely Dubai, Doha and Kuwait City, along with Cairo, secured their spots in the top ten in terms of spending on mega projects relative to WKH VL]H RI WKHLU HFRQRPLHV 7KH FRQVWUXFWLRQ VHFWRUV LQ WKHVH FLWLHV DUH H[SHFWHG WR EH NH\ GULYHUV RI HFRQRPLF JURZWK LQ \HDUV WR FRPH +RZHYHU 'XEDL̵V HFRQRP\ LV H[SHFWHG WR JURZ E\ LQ UHDO WHUPV LQ UHͥHFWLQJ WKH FRPSOHWLRQ RI PDQ\ LQIUDVWUXFWXUH SURMHFWV UHODWHG WR ([SR 'XEDL ̹ *KR]]L FRQWLQXHV ̸0XPEDL KDV WKH IDVWHVW JURZLQJ FLW\ economy owing, in part, to the government’s thrust on infrastructure. Supporting continued growth, the Asian Infrastructure Investment %DQN $,,% DQQRXQFHG LQ 1RYHPEHU WKDW LW KDG DSSURYHG DQ investment of USD575-million in suburban railways and renewable energy sector in Mumbai, taking to its total commitment in India to QHDUO\ 86' ELOOLRQ ,W ZLOO H[WHQG D ORQJ WHUP SURMHFW ORDQ WR 0XPEDL Urban Transport Corporation for USD500-million, while the remaining USD75-million will be invested in Tata Cleantech Capital to boost UHQHZDEOH HQHUJ\ SRZHU WUDQVPLVVLRQ DQG ZDWHU LQIUDVWUXFWXUH ̹ ƒ

Dubai remains at the top of the list of ‘Construction Mega Cities’.

G lobalData tracks large-scale construction projects in all sectors, and following a recent assessment of project pipelines in major cities worldwide, it has compiled a listing of 50 ‘Construction Mega &LWLHV̵ IRU HDFK KDYLQJ D SLSHOLQH RI SURMHFWV ZLWK DQ LQYHVWPHQW value above USD30-billion. The combined value of the project pipelines in these cities stands at USD5,3-trillion, and includes RYHU SURMHFWV DW YDULRXV VWDJHV RI GHYHORSPHQW IURP DQQRXQFHG WR H[HFXWLRQ )URP WR *OREDO'DWD H[SHFWV WKH FLWLHV̵ FRPELQHG gross domestic product (GDP) to increase by more than USD8-trillion WR 86' WULOOLRQ 7KH\ ZLOO EH KRPH WR DQ HVWLPDWHG PLOOLRQ inhabitants, many being in China and other emerging markets that are witnessing a fast pace of urbanisation. GlobalData projects that average per capita GDP in these cities will rise from USD1 791 in WR 86' LQ LQ UHDO WHUPV Dubai remains at the top of the list of ‘Construction Mega Cities’, ZLWK WRWDO SURMHFW YDOXHV DPRXQWLQJ WR 86' ELOOLRQ DKHDG RI /RQGRQ LQ VHFRQG SODFH 86' ELOOLRQ DQG 1HZ

London is in second place.

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CONSTRUCTION WORLD FEBRUARY 2020