KPMG's Global Construction Survey says time and cost overruns are top concern of construction firms operating in the UAE
The UAE construction sector remains optimistic, with just over half (53 percent) of builders expecting 6-10 percent growth next year, according to new research.
KPMG’s Global Construction Survey showed that industry leaders surveyed in the UAE are optimistic about growth prospects, and are confident that technology and governance are likely to play a significant role in the construction sector in the next five years.
Professionals however remain divided over whether companies in the UAE are delivering projects on time and within budget, with time (44 percent) and cost (44 percent) overruns ranking as the top hurdles facing capital construction projects.
These concerns are being addressed as the industry adopts methodologies to link governance to project outcomes.
Sidharth Mehta, partner, head of building, construction & real estate, KPMG Lower Gulf, said: “The construction sector is the lifeblood of the UAE economy and it is very encouraging to see that the industry is expecting single to double digit growth this year.
"As the pace of disruption accelerates, leaders will have to consider implementing a three-pronged approach to rationalise governance and controls, optimize human performance and innovate with technology, to become more future-ready.”
The survey comes as the UAE is seeing technological disruption in the sector, through 3D printing and automation. According to KPMG’s global findings, the use of robots in the field, unmanned aerial vehicles and intelligent tools and equipment will continue to automate many of the less complex and high-risk tasks at the job site, leading to a leaner workforce.
Looking ahead, the survey said that over 80 percent of UAE industry leaders felt that digital modular fabrication will be widely implemented within the next 10 years, followed by intelligent construction equipment (56 percent) and robots (25 percent).For all the latest construction news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.