According to the GCC Building Construction Market Report, the value of new building contracts will hit $85.6bn in 2017, up 7% from $79.5bn in 2016.

The report was produced by Ventures Onsite for ‘The Big 5 Heavy’, the Middle East’s largest event focused on the heavy construction industry.

The UAE ranked first with an estimated $40.5bn in contractor awards coming up in 2017. Qatar and Saudi Arabia were ranked at second and third place respectively at $16.7bn and $16bn. Ventures Onsite says the 2017 figures confirm the UAE construction market’s positive trend, after $32.6 billion worth of projects were awarded in 2016, the highest value registered since 2008.

“Building material suppliers serving the GCC can expect robust growth in the coming years. With a number of mega projects underway, rebound of the regional construction sector will roll out its positive results starting from Q3 2017,” explained Richard Pavitt, event director of The Big 5 Heavy.

Investments in housing, schools, health facilities, public buildings and Expo 2020 were found to be driving Dubai’s construction industry. An estimated 47 contracts worth $3bn relating to the Expo 2020 exhibition are expected to be awarded this year.

A robust pipeline of business opportunities for construction companies exists according to the report; 45% of the projects in pre-construction phase are now in the design stage, while 32% are in the tender for construction phase.

Ventures Onsite says that the current rise in building material prices is indicative that the construction industry is expanding with new projects and properties. The introduction of VAT across the GCC region is also expected to boost the construction sector, as fresh revenues could be used by governments to improve services for citizens, including housing, healthcare and education programs.