Gulf Arab construction sector challenged, despite gradual rebound (2)

Earlier in the day, the International Monetary Fund (IMF) said that economic growth in the six member countries of the Gulf Cooperation Council (GCC), namely Saudi Arabia, Kuwait, Bahrain, Qatar, United Arab Emirates (UAE) and Oman, reached 7.5 percent in 2011, adding that the growth will remain "robust" this year.

Research figures from different sources confirm that all that glitters is not gold. According to Middle East Economic Digest ( MEED), in 2011 alone real estate projects worth 188.7 billion U.S. dollars were cancelled. Research firm BNC Network said in mid- September that 43 percent of projects in the GCC were on hold.

In the first six months of 2012, DSI's net profit shrank by 34 percent year-on-year, amounting to 63.63 million Dirham (17.35 million U.S. dollars). DSI's rival Arabtec Construction said last week its net profit for the first quarter declined by 10.5 percent to hit 35 million Dirham (9.54 million U.S. dollars).

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