According to a recent Dubai Chamber of Commerce and Industry study, after going through a slowdown during the global financial crisis in 2008 and with the current recovery in GCC economies, the UAE construction industry is projected to exhibit sustainable growth prospects in the next few years,.
Construction as a percentage of GDP of the UAE reached 10.6% in 2008 and 10.3% in 2011 while for 2015 and 2021 the sector's contribution as a percentage of UAE GDP is projected to record 11.1% and 11.5% respectively.
According to the International Monetary Fund, the population of UAE is expected to reach 6 million by 2015 from 5.4 million in 2010. The increase in expatriate population, which accounts for more than 80% of the country's population, constitute the main growth drivers for increasing demand for residential and commercial property units in the country.
The study said that the growth in real GDP is projected by the IMF to reach 4.4% in 2015 from 3.3% in 2011, signifying a revival of the overall economy which augurs well for the construction industry.
The UAE was followed by Saudi Arabia at USD 218.9 billion. Qatar accounted for 8.9% of the total construction project value followed by Oman and Kuwait accounting for 3.2% and 1.8% of the top 100 projects respectively.
According to Meed Projects, there were 46 construction projects recorded across the GCC region in 2011. The total value of these projects reached USD billion last year compared to USD 756 billion in 2010.
In its quest to become an international investment hub, the UAE has pushed forward major construction projects in infrastructure and residential/non residential segments. Extraordinary growth in transport infrastructure has been observed, especially in projects such as the USD 7.8 billion expansion of Dubai International Airport, and the USD 6.8 billion Abu Dhabi International Airport re-development project.
According to Business Monitor International, the majority of projects in the UAE's construction industry involve 38% of the total projects to be finalized in energy and utilities, 31% in construction, 29% in transport and 2% in social infrastructure.
