The construction sector in the Middle East and North Africa (Mena) region will face a downturn in 2020 over soaring Covid-19 cases in the region and slump in oil prices, according to leading data and analytics company GlobalData. Yasmine Ghozzi, Economist at GlobalData, said: "Oil and gas dependent countries will face funding challenges given the decline in oil prices, which will have a negative impact on investment in major public-funded development projects." While Saudi Arabia is still maintaining its renewable energy program impetus and Aramco is issuing tenders for offshore construction works, other parts of the GCC, including Qatar, Oman and Kuwait, are revising their spending and their construction pipelines. "Outside the GCC, the Iraqi Government announced that Covid-19 pandemic constitutes a force majeure for all projects and contracts, creating uncertainty in Iraq’s construction sector," he added. Ghozzi pointed out that in North Africa, the outbreak threatens to devastate Egypt’s $12.5 billion-a-year tourism industry, which accounts for 12% of GDP.

Source: The North Africa Journal April 16, 2020 16:30 UTC