UAE market upbeat as $23bn projects to be awarded
Dubai, April 2, 2014
The UAE is set to award $23 billion worth of construction projects in 2014, of which more than $5 billion contracts will be given in the first quarter alone, said a report.
Meanwhile, work began at stalled real estate projects worth $12 billion across the emirates after a long gap of about 18 months, according to MEED Projects.
The pace at which stalled projects resumed construction activity has increased since Dubai won the right to host the Expo 2020 as positive sentiment returned to the UAE real estate market, it stated.
Meed Projects pointed out that 2013 was the second best year for projects since 2008, as over $23 billion worth of projects were awarded in the construction sector. Of this, 55 per cent were for mixed-use or residential developments.
The sheer volume of projects awarded in 2013 was a strong sign of the UAE's strengthening economy, it added.
Julian Herbert, the director of Meed Projects said: "The year showed some of the most promising growth in the construction sector since 2010, with especially strong figures in the residential and mixed-use sector of the industry."
"This is a positive sign of increased investment in the UAE's economy, both from developers and from property investors - the large number of residential project awards alone demonstrates that there is a rising demand for such buildings, indicative of a growing population. The UAE is well on track to returning to the levels of investment last seen in 2008, with 2014 expected to be even better," remarked Herbert.
He pointed out that over $12 billion worth of stalled projects had resumed and the number was expected to increase further during the year.
“We had to physically visit every construction site in the UAE to verify the current level of construction activity. We conduct this survey once a quarter which allows us to accurately report on the volume of construction in the UAE,” explained Herbert.
According to him, Habtoor Leighton Group has dominated the UAE real estate construction sector from 2008-2014, having secured close to $10 billion worth of real estate construction contract awards.
Arabtec has won upwards of $5.5 billion worth of contracts, with other top contractors within the same period being Al Jaber Group, Arabian Construction Company and Al Futtaim Carilion, he added.-TradeArabia News Service