| Construction |
 |
 |
|
Gibraltar has experienced a considerable boom in construction over the last few years. This has covered all facets including luxury residential developments, government co-ownership residential projects, commercial premises, car parks, a new leisure centre, a new airport terminal as well as major infrastructure works, such as a tunnel running under the airport runway to facilitate vehicular movement. This has attracted construction companies from various countries to come to Gibraltar to carry out this work. Major Spanish, Portuguese, Dutch, and English companies have been attracted to Gibraltar, competing with local established construction companies. This activity has also had a knock-on effect for ancillary businesses which either supply products and materials for these projects or provide consultancy and technical services to either the construction or development companies. The construction industry has experienced a global slowdown due to the recent economic problems and this has had a natural effect in Gibraltar, with the postponement of some of the projects originally announced. There is however still significant work currently being undertaken and in addition it is expected that other projects, such as a new electricity generating facility, will soon come on stream, maintaining an element of momentum in this sector. Developers have also, until present, been able to claim fiscal incentives by way of Development Aid. As a consequence, and provided certain conditions are met and the application is successful, certain tax exemptions are available on the profits of the project, adding to attractiveness of undertaking projects. |