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The Middle East And Africa Essay

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The Middle East and Africa Construction spending in the Middle East and Africa increased by 3.8% in 2014, and total construction spending in this region will increase at a compound annual rate of 3.7% through to 2017 (IHS 2013). The South African government has committed to spending US$109.74 billion on infrastructure development through to 2015, including the construction of power plants, transportation network expansion and upgrades, and new water and sanitation systems. A lack of infrastructure has constrained South Africa’s ability to grow its export sectors. As a result, infrastructure will see the fastest growth and residential construction will be the slowest-growing segment in Africa (IHS 2013). On a regional basis, Africa showed …show more content…

Infrastructure is also driving construction spending growth in Colombia, where the government has launched a plan worth US$25 billion for the development of 47 projects before 2020 (IHS 2013). The rapid development of shale oil and gas and other scarce hydrocarbon supplies in North America will serve to moderate global energy prices, making it more difficult for Latin American countries to attract investors interested in developing the needed infrastructure (World Bank 2015). Asia-Pacific Growth in construction spending in the Asia-Pacific region slowed to 5.8% in 2013, as spending increases in China dipped to 5.4% (IHS 2013). ENR (2015) pointed out that infrastructure construction will remain the primary contributor to China’s growth and will accelerate from 7.4% growth in 2013 to 10.3% growth in 2014 since the government’s initiatives to support growth via stimulus continue to revitalize infrastructure projects. Owing to the housing bubble’s adverse effect on spending in residential construction, the Chinese government has shifted to a growth-support policy that has reinforced a rebound since mid-2013. This policy shift has reinvigorated investment in infrastructure, stimulating construction spending in that sector. The Chinese market has been difficult for international firms, and the country’s economic situation is making it even more problematic. The huge growth in Chinese construction companies has seen further crowding in an already crowded market space. In

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