- Broker Directory
- My Tools
- News & Advice
- Market Trends
- Other GN Sites
After years of struggling through the troubled times of the last major economic recession, the construction sector is finally treading smooth-sailing regions with the advent of 2014, the UAE Expo 2020 bid win notwithstanding.
One Gulf News report stated that “The UAE construction industry is witnessing fast track growth with a groove of ongoing projects, investment into green open spaces, and the strong government support, a report from RNCOS analysts said the market, which was estimated at $39.4 billion (Dh144.6 billion) in 2012, is expected to grow at a compound annual growth rate of around 9.5 per cent during 2012-2016”.
Domestic consumption of raw materials has risen as the newly-reinvigorated property market has sparked the resumption of construction work in previously stalled/delayed projects, with a spate of new-builds in the offing. As such, massive investments in the construction industry from both public and private establishments have certainly alleviated the plight of the once-problematic sector. In fact, the percentage of the UAE GDP expected to be contributed by the industry in the years 2015 and 2021 are 11.1% and 11.5% respectively, compared to its actual performance of 10.6% in 2008 and 10.3% in 2011.
In a report of the Dubai Chamber, it was mentioned that “… the majority of projects in the UAE’s construction industry involve 38% of the total projects to be finalised in energy and utilities, 31% in construction, 29% in transport and 2% in social infrastructure.”
Major infrastructure projects such as the continuing expansion of the Dubai Metro and ongoing work on the Etihad Rail, new road and road expansion works across the emirates, airport and seaport developments, power station and industrial works as well as incoming residential projects are all in the menu – all auguring well for the construction sector, and the UAE economy in general.
• Construction industry on a fast track growth trend since 2013
• Domestic consumption of raw materials rising with new projects
• Majority of UAE construction work is into energy and utilities
Source: Lovely Claire CD, Special to Properties
The writer is a freelancer