Gulf airport contracts reached $2bn in first five months of 2012

22 May 2012 (Last Updated May 22nd, 2012 04:35)

Airport contracts in the Gulf region reached $2bn in the initial five months of 2012, according to new research by business intelligence group MEED.

Airport contracts in the Gulf region reached $2bn in the initial five months of 2012, according to new research by business intelligence group MEED.

The report conducted ahead of the Arabian World Construction Summit 2012, declared that about $300bn worth of transportation projects are expected to be awarded before 2016.

MEED Events chairman Edmund O'Sullivan said that governments across the GCC will continue to invest in the infrastructure sector to support economic growth, with the transportation sector one of the busiest.

"Airports are currently leading the boost, as tourism continues to be a major growth driver in the region," Sullivan added.

Earlier this May, it was revealed that Saudi Arabia was planning to invest SAR200bn ($53.33bn) in its aviation sector in over the next five years.

In February 2012, UAE's Alec was awarded a contract of about $850m to build concourse 4 at Dubai International airport, which was larger than the $765m deal won by a consortium lead by Turkey's TAV for the construction of maintenance hangars at Jeddah Airport in Saudi Arabia.

Abu Dhabi Airports (ADAC) is in the final stages of talks with a consortium led by Arabtec to win a contract worth $2.9bn for the construction of the midfield terminal at Abu Dhabi International airport, which is expected to be officially awarded in June.

ADAC is also planning to tender contracts for the construction of airside facilities to further support the new terminal.

The research revealed that Kuwait is also planning to launch tenders for the construction of a low-cost passenger terminal, as well as another large-scale terminal at Kuwait International airport, although the contract is not expected to be award until after 2012.