Lanka should venture into Gulf Construction Market - Dakshitha
Thalgodapitiya
Ramani KANGARAARACHCHI
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.
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