According to a report by Timetric’s Construction Intelligence Centre (CIC), the construction industry in the UAE will continue to be successful over the next few years, with gerowth supported by continued investment in infrastructure, commercial, residential and energy projects.
Large-scale investments in infrastructure development, supported in part by the nation’s hosting of the 2020 World Expo, form the biggest driver of growth. Additionally, the strong economic performance of the country, alongside its strategic location and large consumer base, will continue to attract new investors.
The industry’s output value in real terms is expected to rise at a compound annual growth rate of 6.52% over the next five years. This is an increase of 3.55% during the review period. Consequently, the construction industry in the UAE is expected to increase to US$115.4 billion in 2019.
The UAE is the most industrially diversified economy in the Gulf region, and the non-oil sector contributed 14% of GDP in 2014. The main government focus is increasingly placed on manufacturing, construction and services to diversify the economy from oil and gas, and plans are in place to increase the non-oil sector’s share of GDP to 80% by2030. Additionally, under the UAE’s Vision 2021 National Agenda, the government aims to increase the manufacturing sector’s contribution to GDP from 11% to 20% in 2020, and 25% in 2025. This will create opportunities for the construction industry over the forecast period.
There are however, risks associated with the positive outlook for the construction industry, with falling oil prices expected to affect the long-term growth prospects of the UAE’s construction industry, as the country generates 31% of total export earnings from the oil and gas sector.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/africa-middle-east/07012016/timetric-predicts-uae-construction-industry-will-continue-to-boom-281/