Staff Report
The construction sector in the UAE will remain busy and active over the next decade despite a slowdown in the global economy as the total value of projects in the country hit Dh3.05 trillion in June, according to a report.
BNC Network said in its latest report that the UAE is the second largest construction market in the GCC with Dh3.05 trillion projects after Saudi Arabia’s Dh3.29 trillion projects. However, the UAE leads in urban construction projects with Dh1.75 trillion worth of projects underway followed by Dh1.49 trillion in Saudi Arabia. Both the countries control 69 per cent of the total GCC construction market and 79.5 per cent of the urban construction market, respectively.
More than 26,000 construction projects exceeded Dh9.25 trillion last month, the report added.
Property developers and industry executives said ongoing mega projects will continue even beyond 2020 as the government may come up with surprise announcement to launch new mega developments that will keep the local job market active and contractors busy. They believe that Expo 2020 is not the end, but the beginning of construction industry as the government could bid for mega sports event such as Olympics and also launch another 10-year programme to stimulate the economy.
Expo 2020 is a new beginning and not the end for Dubai’s construction industry.
Following the Expo 2020’s successful bidding, it is believed that Olympics can possibly be the next major event that Dubai or Abu Dhabi can bid for which will drive not just the construction but the economy as a whole. Abu Dhabi has already hosted Winter Olympics generating nearly Dh1 billion in economic activity during its 10-day run. Moreover, it is also spending Dh50 billion under Ghadan 21 programme.
The Expo 2020 helped new project launches and execution – that helped additional facilities being built. Following the Expo 2020, both the sectors will be driven by the real demand and supply situation and how the overall economy performs. If the existing supplies are absorbed by continued demand, we will see more projects coming up in the next few years. – abdulbasit@theuaenews.com
