By Shane McGinley
Around a third of contracts will be in the UAE, according to the organisers of The Big 5
Around $72bn worth of construction contracts are due to be awarded in the Gulf by the end of the year, according to the organisers of a trade exhibition currently taking place in Dubai.
The research was part of the GCC Building Construction Industry Report 2010 and was unveiled at The Big 5 2010 exhibition, the largest building and construction exhibition in the region.
The report concluded that nearly a third of the contracts, or $23.5bn, will be awarded in the UAE.
Five key sectors, including retail, commercial, residential, tourism and leisure, were analyzed, with retail highlighted as the most promising sub sector for growth.
While the downturn in the region’s construction sector had resulted in “a difficult few years,” Andy White, event director of The Big 5, said the research “highlights a steady optimism for the industry, in the UAE and the region generally, and there has been a real buzz leading up to this year's event.”
Looking forward to 2011 and 2012, the report concluded that construction spend would be mainly dominated by the government sector, due to the number of infrastructure projects moving to build phase and the continual development of Abu Dhabi's 2030 programme.
The Big 5 takes place at the Dubai World Trade Centre from November 22 to 25.
Let's hope so, they seem to know something we don't ...eh?
Without sounding cynical I do hope so and that this in not just more hype. Construction spend in the UAE has been acclaimed for the last 12 months and still companies are downsizing and closing. The main issue, as always, is getting paid once you have been appointed and undertaken the work.
The above article states "Five key sectors, including retail, commercial, residential, tourism and leisure, were analyzed, with retail highlighted as the most promising sub sector for growth" however, it wasn't too long ago that the key sector for investment and expansion was Healthcare - what has happened to this sector?
As a former (& recent) UAE resident I would very much like to see this region pick back up and be the tour de force it once was.
i totally agree with Carl here...hope to see UAE back to the summit.looking forward to be back there soon
After todays announcement that a big private developer in UAQ has filed for bankruptcy...I doubt the above 'good' news will last for long. If this bankruptcy case goes through...lookout for a lot more. The worst is definately yet to come and will have a defining effect on the Real Estate/Investment market.
Contracts still to be let amounting to $72 billion across the Gulf is quite possible, adding Saudi Arabia, Qatar, Oman, Abu Dhabi, Kuwait, Bahrain to gether infrastructure projects mainly but remember sub-contracts by prime contractors holding an existing award still count. So BinLadin in Jeddah will subcontract parts of Jeddah Airport redevelopment and expansion Khalifa Port and Nuclear power project in Abu Dhabi the same.
As for the rest of UAE pretty lean apart from Nakheel restarts, however UAE companies are picking up cross border contracts as well which bolsters the numbers.
UAE residential, office, and retail not much more emerging contractual potential I suspect. Here the best policy is to stop building everything in these segments that's not bought and paid for in sufficient volume to move forward. The bankruptcy ofAl Murjan Real Estate at the Umm Al Quwain White Bay project will have far reaching effects on demand and confidence in the UAE property market yet again.
I completely agree with Simon, the worst is definitely yet to come.