How has the economic crisis impacted on the MEP sector?

MEP services are an integral part of building activities, and the most demanded services within the construction sector, as it is required to keep building functions fully operational. So any impact on economic growth will directly impact the growth of the construction sector – which, in turn, will impact the growth of MEP services. The growth rate of MEP services in the GCC over the last three years was around 19%, a period when there was a boom in the construction sector and oil prices were soaring.

However, the growth rate showed a slight dip in 2008, and tumbled to almost 5.5% between 2008 and 2009 due to the sluggish economic and financial outlook, thereby reflecting the reduction in construction activity. We expect the market to grow at a compound annual growth rate of 11% during the next five years, showing a gradual incline in growth during the end of 2010 or at the beginning of 2011 till 2013 owing to higher investments in real estate and infrastructure projects, mainly ... more.

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