Overseas construction orders won by South Korean builders in 2015 fell sharply from the previous year, mainly because demand from the Middle East weakened significantly on low oil prices, government data said Thursday.

Construction firms sealed around $46.1 billion worth of overseas contracts in 2015, a 30.1 percent drop from some $66 billion clinched the year before, according to the Ministry of Land, Infrastructure and Transport.

“The country’s overseas order volume fell significantly as a drop in global oil prices drove down demand and the weakening of the yen and euro intensified market competition,” said Lee Ki-bong of the ministry’s overseas construction unit.

Construction orders from the Middle East, the biggest market for Korean builders, fell 47.2 percent to $16.5 billion in 2015 from $31.4 billion in the previous year, largely due to a steep decline in oil prices linked to a global oil glut.

Orders from Africa and Europe fell by 80.9 percent year-on-year to $1.71 billion in 2015 while orders from Central America dropped by 32.9 percent from 2014 to reach $4.53 billion in 2015.

On the contrary, orders from Asia climbed 23.9 percent to $19.7 billion in 2015 from $15.9 billion in 2014, according to the ministry. 

The ministry said the local construction sector will likely continue to face unfavorable market conditions next year as low oil prices, geopolitical issues in the Middle Eastern region and a global economic downturn continue into the year 2016.

By Sohn Ji-young(jys@heraldcorp.com)