Due to the continuous economic effect of COVID-19, Pioneer IPMC’s research team is attending every possible webinar and reading every possible article on the subject.
According to MEED’s latest webinar, there are 1332 projects known to have been impacted by COVID-19 in the GCC, worth 463bn$, some were delayed, suspended or cancelled because of different factors and the most affected sector is the construction sector followed by the transportation sector, leaving behind the industrial sector which is the least affected one.
Moreover, MEED webinar focused on projects in the tendering stage where some were cancelled but the majority are still on plan to be awarded soon with values of 700m$ and above. MEED Projects reviewed the predictions based on May’s data and the recent government cuts in spending in the GCC, introducing the fact that if the current slow rate of activity were to continue until the end of the year; there will be a strong fall of original predictions for contracts signing.
The main contributor to the current projects’ situation in the GCC stems from two main factors, the first of which is the significant drop in oil prices which took place in April 2020, and the second being the imposed civil lockdown in the GCC which caused direct negative impact on projects.
In COVID-19 era, companies must be careful yet brave because with greater risks, great opportunities might arise.