Lanka should venture into Gulf Construction Market

Sri Lanka should explore into the Gulf Construction Market as there are huge opportunities at all levels. CEO ,Chamber of Construction Industry Dakshitha Talgodapitiya told Daily News Business. Opportunities that exist not only in GCC countries but also in the Asian Region must be vigorously explored to place the Sri Lankan construction industry on the regional map, an exercise that cannot be accomplished without tangible support from the Government he said.
The country has already been able to enter this market following the delegation facilitated to promote export of construction related professionals services and construction industry capacities last year which visited the State of Quatar and Dubai. As a result, a number of professional service providers have succeeded in obtaining consultancy assignments and outsourcing opportunities. Some of the major civil and MEP contractors also have ventured into the State of Qatar by establishing joint ventures with Qatari companies.
Talgodapitiya pointed out that the value of active construction projects within the GCC (Gulf) countries exceeds USD 1 Trillion out of which Kuwait accounts for USD 211 Billion, Saudi Arabia over USD 200 Billion and the UAE more than USD 221 Billion while Qatar which is the fastest growing economy in the region and the Sultanate of Oman having multiple construction projects also contributing in no small measure to the Gulf Boom. With some of the most innovative projects underway, analysts expect the construction and real estate sectors to remain upbeat.
According to Talgodapitiya the, Chamber recognises entering the construction market in the Asian Region in an era of extreme competition will remain a challenge and a large number of constraints and barriers will require dismantling. CCI in its capacity as the accredited representative of the principal stakeholders of the construction industry wishes to be officially recognised as the focal point for promotion of export of construction related professional services from Sri Lanka.
The Chamber solicits financial assistance from the Government of Sri Lanka to undertake this exercise and launch a series of initiatives which are so necessary to ensure that domestic construction companies are made ready to enter the overseas market.
The Chamber believes that the competitive position of the construction industry will depend on relevant sectors of the industry embracing an export culture. The construction boom in the Gulf region has reached staggering heights with many iconic building and other projects worth more than UDS 2.4 Trillion being undertaken.
Sri Lankan professionals numbering in the tens of thousands have earned the highest respect and are most sought after in the Gulf region. They have taken the lead role in mega development projects such as airport development in the Gulf. In this scenario, entry of Sri Lankan professional service providers and constructors to the Gulf market is a distinct possibility. However, traditionally, to do business in the Gulf, you need to build up strong linkages and close ties and bonds with industry stakeholders and clients in these markets which is a task that cannot be achieved through one-off visits. Relationships established through MOUs and partnering arrangements by the Construction Chamber with its counterparts in the Gulf need to be strengthened through regular visits. In this respect, CCI has already entered into a MOU with the Qatar Chamber of Commerce and Industry and has even initiated an alliance with Doha Bank, the Arab Bank of the Year 2007.
We need to monitor construction industry opportunities in the Gulf, develop market intelligence and continuously nurture exiting relationships while forging new alliances, he said.
Sri Lankan enterprises that have secured contacts and business leads must be provided with support services and industry personnel at all levels must be subjected to training and continuous professional development.
If prioritised attention of the Government is focused on export of construction related professional services and contracting capacities from Sri Lanka, billions of Rupees in foreign exchange could be earned while generating a large number of meaningful employment opportunities for construction industry personnel at all levels.
The Chamber is confident that an internationally competitive domestic construction industry could be created placing Sri Lanka on the Global map as a reliable source of construction services.