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UAE construction market said to be worth over $1trn

UAE construction market said to be worth over $1trn

Arabian Business, 1 April, 2019

About 28 percent of the UAE’s construction projects are currently on hold, according to research by Protenders.

It said that the total value of the UAE construction sector is $1.01 trillion, with $284.7 billion on hold, without giving reasons or a comparative figure.

The research also revealed that $420.1 billion worth of projects are currently under construction, making up 42 percent of the total.

It added that $80.8 billion of projects are in the planning phase (8 percent), $152.7 billion are in the design phase (15 percent) with $72.6 billion at the tendering stage (7 percent).

Of the ongoing projects, Protenders said urban buildings make up 57 percent of the total development ($238.3 billion) while oil and gas projects make up 24 percent ($100.5 billion) and infrastructure represent 19 percent ($81.3 billion).

Of the upcoming $306 billion of projects, Protenders said that urban make up 42 percent, infrastructure 38 percent, oil and gas 20 percent.

The report also identified the top five developers in the UAE, according to the value of their projects. It named Abu Dhabi General Services (Musanada) as the top developer, with 27 percent of the total value of the construction pipeline, followed by Emaar Properties (25 percent), Adnoc (22 percent), the Roads and Transport Authority (21 percent) and Abu Dhabi Department of Transport (18 percent).

Last month, Dubai Municipality said that it approved 29,000 building permits in 2018, while 6,043 buildings were completed last year.

Dawoud Al Hajri, director general of Dubai Municipality said that the total area of construction completed in 2018 was 100 million square feet, which is a 6 percent increase in Dubai’s urban construction sector compared to that of 2017.

The municipality also said it approved the registration of 802 new contracting companies of different types in Dubai.