$46bn projects to boost UAE construction sector
Dubai, July 3, 2014
The UAE construction sector’s pace is set to rapidly accelerate in 2014, with the government announcing development projects worth $46 billion and stepping up spending on social infrastructure development, said a report.
The new projects, combined with many previously stalled projects now forging ahead, will continue to bolster the 2013 upswing into 2014, stated top consultancy Ventures Middle East in its recent report entitled “Exploring UAE’s Strong Investment Environment.”
The report also pointed out that the UAE’s GDP for 2014 was set to grow at 4 per cent to reach $404 billion, up from 390 billion in 2014, fuelled by the construction sector upturn and support from the oil & gas sector.
The report sets the value of the country’s building construction sector at almost 60 per cent of the total projects in the construction industry, followed by infrastructure, oil & gas and power & water, with total construction projects awarded in the UAE totalling $38 billion in 2013.
Experts believe the awarded projects in the country will reach $46 billion this year.
Damac Properties, one of the largest luxury real estate companies in the Middle East, whose recent developments include the 42 million sq ft master development, Akoya by Damac and the four-tower Damac Towers by Paramount project in the Burj Area, is bullish about the upswing in the market.
"The outlook for the real estate sector in the UAE and Dubai is positive, and this is mainly due to the strong economic growth experienced since 2012. Dubai in particular has continued to witness solid economic recovery and this is reflected on the real estate sector," remarked Ziad El Chaar, the managing director of Damac Properties.
"Strong predicted growth of 4.5 per cent this year will sustain demand for residential property; this explains the continuous solid levels of demand in the market, which is reflected in the growth in rental levels and residential values on the short and medium terms," he added.
In line with the continued growth, the country’s infrastructure sector has seen significant investment and development particularly in roads and airports. Dubai Airports this year announced a $7.8 billion airport and airspace expansion programme which will boost capacity at Dubai International from 60 million to 90 million passengers per year by 2018.
The investment is designed to deliver aviation infrastructure which will support the continuation of the sector’s impressive growth, facilitate Dubai’s economic expansion and generate an estimated 22 per cent of total employment and 32 per cent of the emirate’s GDP by 2020.
Similarly in Abu Dhabi, the Dh10.8 billion Midfield Terminal Building project - a 700,000 sq m site with what is set to be the world’s largest baggage system - remains on schedule to open by July 2017.
Experts believe the region’s leading international building and construction show, The Big 5, will demonstrate this renewed industry confidence with its largest edition yet.
Last year, The Big 5 had attracted more visitors than ever and with 98 per cent planning to return this year plus a host of new exhibitors from across the world.
Andy White, the group event director of The Big 5 said the upcoming show will be the largest and best attended in its illustrious 35-year history.
"The Big 5 has become the region’s leading hub for construction professionals to source new products, discover the latest innovations, engage in educational workshops and conferences, and network with thousands of key players and potential customers," stated White.
"The buzz surrounding the industry is growing and I am confident that this year will be the biggest yet for The Big 5, as the region’s construction sector continues to make a strong comeback," he added.
Running alongside The Big 5, two co-located events, PMV Live and Middle East Concrete (MEC), offer a 360 degree platform to the building and construction industry, with the three shows providing the largest international building construction, concrete and heavy machinery gathering place in the region.
Last year both shows attracted a record breaking 32 per cent increase in attendance over 2012, with another outstanding year expected for 2014 as companies in the PMV and concrete sectors take advantage of the region’s burgeoning infrastructure projects.-TradeArabia News Service