The UAE construction industry is still active, with around 1,845 construction projects underway in spite of the economic slowdown.
According to a survey conducted by Dubai-based research firm Proleads, some 1,845 construction projects with total value of around US$ 657 Billion are currently underway in the UAE, as reported by
Steel Guru.
The survey of the UAE civil construction industry divided it into four sectors – Entertainment and Leisure, Residential, Healthcare and Education and Commercial and Retail. Besides, the survey exemplified that 69% of the entire construction projects were underway in the country.
Mr Emil Rademeyer, Director of Proleads, said, “Throughout our research in each sector we found a number of common issues. Over two thirds of projects are still active, new projects starting have slowed and projects completing are accelerating and cash flow is declining," reports Steel Guru on November 15, 2009.
According to a report by the Global Construction 2020, the annual growth rate of the UAE market is expected to be between 5% and 6% over the next decade.
It further states that the UAE will witness sluggish recovery of residential property construction in coming years coupled with unrestrained development of infrastructure.
Mike Betts, a Consultant at Global Construction Perspectives, said, “From our perspective we see a downturn happening this year and bit into 2010 but that downturn is nothing as steep as other developed markets, like the US example,” as reported by
Arabian Business.
Another leading market research firm
RNCOS has said in its report “
UAE Construction Industry Outlook to 2012” that despite the global economic slowdown, the UAE continues to embark on its journey of developing infrastructure in the field of housing tourism, airports, industrial and commercial facilities, ports, healthcare and education amenities, communications, transportation and utilities. All these projects will give a new shape to the urban landscape in coming years.
According to a Research Analyst at
RNCOS, “The Middle East region will shift construction activities from luxury housing to affordable units in the next decade. It is expected that there will be a significant increase in more affordable housing instead of high profile construction seen in the city of Dubai. Moreover, the UAE is anticipated to register bulk of investments and will develop into the gateway to exploit the emerging gulf market.”
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