Bergman says that tenders for much of the engineering and consulting services contracts are out already, with some authorized and being executed. But he adds, “At the same time, there’s a lot more coming.” That includes infrastructure, such as roads to alleviate congestion.
Over the past half-dozen years or so, the construction market contracted in the U.A.E. “But now you’re seeing the cranes going back up,” Bergman says.
On a stop in Riyadh, Pritzker observed that Saudi Arabia has more than $1 trillion in projects under way or planned, including the $22-billion Riyadh Metro system and other rail lines.
She also noted that the kingdom has aggressive plans to expand renewable energy, aiming to have about half its power from alterative sources, with a large share coming from solar energy. FirstSolar, AREVA Solar and SolarReserve were represented on the trade mission.
Burns says he met with officials from the Saudi health ministry, which seems to be making a big push to expand health care, including plans to build 140 hospitals in the next five years. “That’s clearly a massive undertaking,” he notes.
Burns adds, “There’s definitely a lot of energy and activity in many sectors.”
The U.S. delegation's final stop was in Qatar, where more than $150 billion in infrastructure is planned by 2022, when the country will host soccer’s World Cup.
Pritzker met with Hassan Al Thawadi, who is in charge of the World Cup preparations. The U.S. delegation also met with the presidents of Kahramaa, Qatar’s General Water and Electricity Corp. and Ashghal, its public works authority.
Still, the U.S. companies are far from being alone in pursuing infrastructure work in the Middle East.
For example, on March 23, Qatar’s Ashghal held a ceremony to sign three large highway contracts, totaling $3.46 billion.
One was awarded to a joint venture of QDVC, which is 51% owned by Qatari Diar Real Estate Investment Co. and 49% owned by France’s Vinci, and Bin Omran of Qatar.
The second contract went to a team composed of Qatar’s Al Jaber Engineering and a unit of Australia’s Leighton.
The third was awarded to Larsen & Toubro Ltd., Mumbai, India.
Digit Group’s Doherty added, “Although there is always non-U.S. competition in the [Middle East-North Africa-Gulf Cooperation Council] market, we found the government officials and private company leaders we met to be warm in welcoming U.S. companies.”