Qatar, UAE top in built asset index
Dubai, May 7, 2014
Qatar and the UAE are among the countries in which built asset contribution to the GDP is the highest in the world, a new report has said.
On a per-capita basis, Qatar stood second in the world on the Arcadis Global Built Asset Performance Index with built assets income estimated at $20,630 per person in 2013. This is only behind Singapore ($29,500).
The UAE was placed third with a built assets income estimated at $17,470 per person.
About 44 per cent of the UAE’s economic output in 2013 can be attributed to income from built assets, said EC Harris, an Arcadis company and built asset consultancy firm.
“Our main goals in developing the report are to better understand a country’s built assets, which take into account the value of all public and private property and infrastructure in a country, and the key contributing factors to fuel economic growth and investment,” said Chris Seymour, head of UAE property and social infrastructure at EC Harris. “The report’s findings are tremendously significant in this regard, underling the UAE as the region’s number one in terms of GDP generated from built assets.”
Developed in conjunction with the Centre for Economics and Business Research (Cebr), the Global Built Asset Performance Index illustrates how buildings and infrastructure contribute to GDP across the world.
Seymour said: “The core focus in these regional markets, particularly in the UAE, is on strategic planning and creation of sustainable assets for the long term. Through the development of built environment, the UAE can foresee future social and economic growth."
On an absolute basis, however, UAE ranked only 23 out of the 30 markets surveyed, due to its relatively small geographic size and population.
Seymour added: “From our research, we can see that countries face many different challenges in order to maximise the performance of their built assets. While some countries are proactively managing their built asset wealth to put them in pole position to reap the economic returns over the coming decade, others are in danger of failing to invest in their aging built asset base leading to a slow decline in their economic power. Sustaining a built asset base that protects the environment, enables people to thrive and creates economic value is possible but a clear long-term vision to deliver this infrastructure is absolutely essential.”
Economies to watch
The fastest growth in built asset performance over the next decade is expected in China, Indonesia and Saudi Arabia. China’s built asset income is expected to increase dramatically by 77 per cent up to $12 trillion by 2022. Similarly, incomes in Indonesia and Saudi Arabia are set to rise by 65 per cent and 70 per cent respectively. – TradeArabia News Service