Building materials price index to curb costs

  • Share via facebook
  • Tweet this
  • Bookmark and Share

Abu Dhabi plans to launch a price index for building materials in a move aimed at curbing price manipulation asconstruction costs soar in the UAE.

The Department of Planning and Economy (DPE) said the index will include 22 products that make up 90 percent of basic construction materials.

“The building materials' price index will expose traders who manipulate prices in this vital sector amid the current economic boom in Abu Dhabi in particular and the UAE in general,” the DPE said in a statement carried by state news agency WAM.

“Soaring fuel prices and international high transport cost also contributed in increasing prices of many basic construction material prices.”

The DPE said some building material prices fluctuated in June, with iron pipe rising by 19 per cent compared to the previous month, spiral iron up by 17 percent and round bar iron climbing 4 percent.

Other prices of building materials were stable in June compared to May, it said.

Building materials make up around 30 percent of a developer’s costs, with labour and plumbing, electro-mechanical and interiorFinishing (PEM&I) making up the remaining 70 percent, according to HSBC.

The DPE last week launched its first consumer price index (CPI) comprising 53 food items, which make up around 15 percent of family spending in Abu Dhabi.

The increased emphasis on monitoring price trends comes as the UAE is battling to control soaring inflation, which hit a 20-year high of 11.1 percent in 2007.

The DPE said last month that inflation in the UAE capital hit 11.7 percent in 2007 and held at 11.5 percent in March.

Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

Enter the words above: Enter the numbers you hear:

All comments are subject to approval before appearing

Further reading

Features & Analysis
$40bn housing deal may signal Gulf investment push into Egypt

$40bn housing deal may signal Gulf investment push into Egypt

Egypt's economy is recovering only slowly from the turmoil that...

Opportunity knocks

Opportunity knocks

Government-backed projects for Saudi’s housing markets have been...

Splash the cash

Splash the cash

Orlando Crowcroft finds Qatar’s retail market is creating a lot...

Most Discussed
  • 54
    Three UAE women attacked with hammer at London hotel

    I really feel that Arabian Business.Com should now close this comments page. This should be all about sympathy for the families not what it is/has turned... more

    Wednesday, 16 April 2014 1:06 PM - Adrienne
  • 51
    Why Dubai isn't a plastic city

    What is definitely not a plastic city. The Arabs have a culture dating back to several centuries. 50 years back Dubai was just a fishing village. Today... more

    Tuesday, 8 April 2014 3:49 PM - P. MADHUSUDAN
  • 48
    DMCC boss Ahmed Bin Sulayem entertains Robert Mugabe in Dubai

    @fga ''However today, simply because he decided to dispossess a few white farmers of their land and redistribute to the poorer indigenous blacks'' more

    Sunday, 13 April 2014 3:02 PM - Matt Williams