I believe that market sentiment is improving however it will still be a tough year for trading in 2017 on tight margins in the MENA region.
Certain markets and sectors are being hit harder than others and the key for SSH is to navigate a steady course around the region focusing on our key client relationships and delivering to the very demanding schedules.
We are often teamed with international partners and in some cases getting them to appreciate the time and budget pressures that our clients face in this regional market can be a challenge. Also, as with most businesses in the current market conditions, cash flow is critical and must always be a focus for us to earn and collect the cash in a timely manner especially given the tight margins available.
I think that we will see a trend towards utilising consultants committed to and based in the region, who can draw upon world class expertise locally to meet the budget and time constraints that our regional clients face.
SSH is shaped and focused to respond to this market trend and as one client said ‘you have hit our sweet spot on what we need to deliver our projects’.
I also see progress on increased private sector engagement in major project delivery and a genuine desire to move the private partnership agenda along especially in the UAE. However, more needs to be done at governmental level if this is to truly flourish and properly fill the budget gap that the new oil price levels have created.
I would also like to see the trend of rail investment in the region continuing as a catalyst for further general market growth and particularly in the Kuwait market. However, I currently believe that this is something that the individual governments are reviewing as these are significant long term investments and major budget commitments.