Ownership of Risks on GCC Construction Projects - Essay Example

The huge scopes of investment along with the speed at which investments have taken place are providing the construction industry of the GCC region with a huge set of opportunities. It is, however, not the case the pattern and the extent of this real estate boom is similar in case of all the countries in the GCC region, but the interesting thing is that market characteristic, outlook, and environment of investment in most of the GCC countries are pointing towards the continuation of this current boom for some time in future. The ongoing boom in the real estate sector is not only significant for the growth of the construction sector of this region, but also to the development of the overall economy as the construction sector is one of the most important economic sectors of the region which significantly contributed to the GDP of this area.

Given the importance of this sector to the overall economic conditions of the countries in GCC, it is very much important that the current pace is maintained in the future also. In order to ensure that the real sector of GCC is growing at a rapid pace in the coming years also, it is essential to manage the ongoing and upcoming investment projects in this sector very efficiently so that these projects could deliver desirable output. As far as project management in the construction sector is concerned, it is not an easy task to perform by the project managers.

This is because investments in construction sectors are exposed to a large set of risks. Hence, in order to ensure efficient management of the investment projects, it is first necessary to conduct efficient management of the risks associated with real estate projects. Project management is generally considered to be a complicated task that requires an efficient combination of knowledge, appropriate techniques and skills to be applied to the project-related activities so that the expectations and demands of the shareholders from a particular project can be met adequately.

Project risk management is a very crucial part of project management.