$364bn of UAE construction projects on hold, cancelled

New research also shows that more than 1,600 projects still active despite downturn.
$364bn of UAE construction projects on hold, cancelled
By Andy Sambidge
Sun 18 Apr 2010 02:21 PM

A total of 1,296 construction projects worth more than $418bn are currently being built in the UAE, research company Proleads said on Sunday.

Its new report also said an additional 303 projects worth $143bn were in the design, planning and or bidding stage.

It said 842 projects with a total value in excess of $350bn were on hold as a result of the economic slowdown and a further 111 projects valued at more than $14bn have been cancelled.

The total state of the UAE civil construction market included a total of 2,552 projects with a combined total budget value of almost $930bn, Proleads added.

“The construction boom has slowed down in the UAE as it has elsewhere but there is still 1,600 projects worth over $560 billion either in execution or about to start construction in a more sustainable approach to development,” said Graham Wood, group director of CityBuild Abu Dhabi organiser IIR Middle East.

The Proleads investigation considered projects with a budget value greater than $10 million and divided the market into five sectors - commercial, retail, hospitality, residential, and healthcare and education sectors.

In a sector breakdown, Proleads said the total commercial sector consisted of 462 projects valued at $253bn.

Although a large proportion of projects were in execution, many have been placed on hold or even cancelled since the fourth quarter of 2008, the research house added.

New project construction starts have also slowed, while those completing are increasing, the report said.

The total retail sector consisted of 336 projects valued at $148bn with 64 percent of projects still active while the hospitality sector consisted of 392 projects valued at $162bn with 63 percent active.

The residential sector included 682 projects valued at $306bn with 62 percent of projects active.

The education and healthcare sector included 680 projects valued at $58bn with 64 percent of projects active.

The research was done on behalf of CityBuild Abu Dhabi which opened on Sunday and is being held alongside Cityscape Abu Dhabi.

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