Cheap Oil Is Hurting Middle East Builders

The video discusses challenges in the construction sector, focusing on Arabtec and Drake and Scull. It highlights operational issues beyond oil price impacts, with restructuring efforts and market dynamics playing a role. The video also contrasts the performance of companies like Emaar with others, noting brand trust and demand variations. Rumors of consolidation in the UAE, particularly in banking, are explored. Finally, the video examines OPEC's diminishing control over oil prices due to global production dynamics.

What was a significant operational issue faced by Arabtec and Drake and Scull?

• Lack of skilled labor

• Excessive government spending

• Mispricing of projects

• High oil prices

How does Emaar's market performance differ from that of Arabtec?

• Emaar struggles with brand trust

• Arabtec has a stronger balance sheet

• Emaar is seen as a reliable brand

• Arabtec has more off-plan sales

What is a common rumor regarding the UAE market?

• Increase in oil production

• More mergers and acquisitions

• Decrease in construction projects

• Rise in tourism

Why might OPEC's influence on oil prices be diminishing?

• OPEC cannot control all oil production

• OPEC has increased production cuts

• US oil inventories are low

• OPEC controls all global oil production

What challenge does OPEC face when reducing oil supply?

• It stabilizes the market

• It increases global demand

• It encourages shale oil production

• It decreases oil prices