Market Research Report
Construction in Iraq - Key Trends and Opportunities to 2023
|Published by||GlobalData||Product code||366056|
|Published||Content info||47 Pages
Delivery time: 1-2 business days
|Construction in Iraq - Key Trends and Opportunities to 2023|
|Published: September 25, 2019||Content info: 47 Pages||
Following three years of contraction, Iraq's construction industry is expected to recover in 2019, with the industry's output expected to register a growth of 25% in real terms that year. The growth momentum is expected to continue throughout the forecast period (2019-2023), driven by a recovery in crude oil prices, coupled with government's investment towards new oil and gas projects, as well as water and sewage infrastructure. Furthermore, the government's plan to redevelop war-affected transport infrastructure and houses in the country is expected to support the industry's output over the forecast period.
In July 2019, the government allocated IQD2.6 trillion (US$2.2 billion) to redevelop the country's damaged infrastructure. Previously in 2018, the government announced plans to attract over IQD118.4 trillion (US$100 billion) by 2027 through foreign investment to redevelop the damaged energy and transport infrastructure across the country.
In real terms, the industry's output value is expected to post a forecast-period compound annual growth rate (CAGR) of 15.75%, compared to -25.89% during the review period (2014-2018). The industry is consequently expected to rise from a value of US$9.2 billion in 2018 to US$19.2 billion in 2023, measured at constant 2017 US dollar exchange rates.
There are, however, risks associated with the industry's outlook. If the oil prices do not rebound enough, the government's fiscal position will be challenging, and as such it will struggle to drive investment in infrastructure, and if the attack of terrorist groups in the northern and western province is prolonged, it will continue to damage investor confidence, and thus undermine growth prospects over the forecast period.
Accounting for 42.6% of the industry's total value in 2018, residential construction was the largest market in the industry during the review period. Forecast-period market growth is expected to be supported by rising need for houses in the ISIS-liberated regions of the country. Energy and utilities construction accounted for 18.58% of the industry's total output in 2018, followed by infrastructure construction with 18.57%, commercial construction with 10.5%, industrial construction with 6.3% and institutional construction with 3.5%.
The total construction project pipeline in Iraq including all mega projects with a value above US$25 million - stands at IQD251.4 trillion (US$211.6 billion). The pipeline, which includes all projects from pre-planning to execution, is heavily skewed to late-stage projects, with 81.5% of the pipeline value in the pre-execution and execution stages as of September 2019.
The report "Construction in Iraq - Key Trends and Opportunities to 2023" provides detailed market analysis, information and insights into the Iraqi construction industry, including -
This report provides a comprehensive analysis of the construction industry in Iraq. It provides -