GCC airport expansion faces financing crunch amid low oil prices

The continuing expansion of airport infrastructure across the Gulf region will require alternative financing solutions as low oil prices challenge government budgets, according to a new Deloitte report.

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The continuing expansion of airport infrastructure across the Gulf region will require alternative financing solutions as low oil prices challenge government budgets, according to a new Deloitte report.

Its latest report on the construction industry in the region highlights the need to counteract the potential reduction in the ability to raise necessary finance.

It also predicts continuing success of the region’s airports, particularly Dubai, Abu Dhabi and Doha, enabling them in the future to seek to leverage their global brand and pursue international opportunities.

With declining funding from government for major projects, Deloitte said it is observing the region’s airports increasing their focus on maximizing returns from existing assets as well as leveraging public-private partnership (PPP) delivery models of standalone projects such as baggage system upgrades, security and car parks. More info

By Staff  www.arabianbusiness.com

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