By Sam Bridge
New research says there are 4,792 current active projects in Dubai, accounting for 42% of the UAE's total
Expo 2020 and government-led infrastructure projects were key factors driving the growth of Dubai’s construction sector in 2018 and 2019 and this is expected to continue over the next two years, according to a new report.
Analysis released by Dubai Chamber of Commerce and Industry, based on recent data from BNC, IMF, Haver Analytics and Fitch Connect, revealed that the construction sector contributed an estimated 6.4 percent to Dubai’s GDP in 2018.
It added that there are 4,792 current active projects in Dubai, accounting for 42 percent of the UAE’s total.
Other key growth drivers for Dubai’s construction market include the emirate’s strong economic fundamentals and diversification strategy, steady increase in population and number of tourists, sustained infrastructure investment over the medium term and major government investments in transportation, the report noted.
It also said that most Expo 2020 related infrastructure projects are either under construction or completed, while the majority of the contracts are for building works located at the Expo site.
Other mega projects include expansions of Al Maktoum International Airport (DWC), Jebel Ali Port and the Dubai Metro Red line connecting the city centre to the Expo 2020 site.
The findings also showed that the UAE leads the GCC in the value of awarded contracts for 2019 as the country is estimated to have $48.4 billion worth of contracts in the pipeline, followed by Saudi Arabia ($40.2 billion) and Kuwait ($15.8 billion).
The UAE also outperforms other countries in the region when it comes to the contribution of its construction sector to national GDP with the value of this figure reaching $33.2 billion in 2018.
Hassan Al Hashemi, vice president of International Relations at Dubai Chamber, described Dubai as a land of opportunity for stakeholders in the global construction industry.