Industrial Construction in the UAE to 2019: Market Forecast
Historical (2008-2012) and forecast (2013-2017) valuations of the construction industry in the UAE using construction output and value-add methods, implies that the UAE construction industry increased in value at a CAGR of 0.49% during the review period.The reason of the growth can be attributed, among other construction sectors, to the growth in the industrial construction industry.
SWOT Analysis of the Construction Sector in UAE
· Oil-rich country
· Political stability
· International business and investment from overseas
· Growing non-oil sector
· Tax free environment
· Attractive salaries
· Inflation growth
· Currency value instability (AED peg to USD)
· Oil production spending increase, government saving decrease
· Shortage of skilled manpower
· Image of the ‘Disney World in the desert’
· Disparities between Emirates
· The rise in oil income
· Progress toward diversification into service sectors such as high-tech, logistics, ports, tourism, financial services, health, education and media
· Global increase in oil consumption and oil price rise
· Private sector-led economic expansion promotion
· Restart of Iran’s nuclear weapons programme
· Conflicts in the GCC region and worsening security
· Downside risks from the global economy
· Worsening international financial market conditions
· Competition from other emergent markets in the Middle East and worldwide
From the analysis above, it is clear that the construction sector in UAE has strength and weaknesses as well. The potential capacity can be harnessed only if the opportunities are utilized in a profitable manner.
The UAE’s industrial construction industry is expected to exhibit increased growth rate and continue the boom in coming future, on account of expansion of the overall construction sector through increasing investment in infrastructure, residential, commercial and energy projects. The industry’s output value in real terms is forecast to rise at a CAGR of 6.52% in the next five years period; up from 3.55% during the period 2010-2014.
The promising future of the construction industry can be seen by observing its past trend. After facing the slowdown in 2008, on account of global financial crisis and with the recovery of GCC economies, UAE’s construction sector has exhibited sustainable growth over the years, with its value following an upward trend from 2009 through to 2011 and forecasted to be continuing with the same pattern in future as per the Dubai Chamber of Commerce and Industry. The industry is also contributing increasingly in the nation’s GDP and that this trend is also forecast to be continued in coming years reaching 11.5% of GDP in 2021. The reasons for this growth can be attributed to various macroeconomic factors conducive to the construction sector.
Key Macroeconomic Trends Driving Growth in UAE Industrial Construction Sector
UAE is one of the most diversified economies in the Gulf region. The non-oil sector contributes 14% of GDP in 2014. Govt. is focusing increasingly on manufacturing, services and construction, to leverage the economy by increasing the share of these sectors in the economy and hence reducing the effect of adverse oil and gas market conditions on the nation’s GDP. Govt. targets to increase the share of non-oil sector in the GDP to 80% by 2030.
UAE ECONOMY SNAPSHOT 2011 2012 2013 2014 2015
Population (million) 8.5 8.8 9.0 9.3 9.6
GDP per capita (USD) 40,072 41,685 41,980 42,067 –
GDP (USD bn) 341 365 379 391 –
Economic Growth (GDP, annual variation in %) 5.2 6.9 4.3 4.6 3.1
Some macroeconomic factors driving growth in UAE Industrial Construction industry include:
The population of UAE which is increasing and is also anticipated to increase at a higher rate in future, necessitating the need of power, water supply, health concerns, increased food production through fertilizers etc. This ultimately necessitates industrial constructions of power plants, chemical and pharmaceutical plants, water storage etc. expanding the industrial construction sector.
As can be observed from the increasing GDP, strong economic performance of UAE along with its strategic location has always attracted investors.
Various investor friendly govt. policies, such as permitting non-UAE national freeholds and leaseholds are attracting Foreign Direct Investment (FDI) in construction sector.
Due to Dubai hosting the World Expo, 2020, Govt. is investing in related infrastructure and facilities, as well as, investing for developing country into a tourist destination ahead of World Expo, is driving up the growth of construction sector.
The UAE construction industry’s growth will be driven by the government’s plan to increase the share of renewable energy in terms of total energy consumption, encouraging investment in renewable energy infrastructure. The government aims to generate 7% of the country’s total electricity needs through renewable sources by 2020.
To know more on coverage, click on the link
Commercial Construction in the UAE to 2019: Market Forecast
Worldwide Construction Industry – Opportunities in Developing Regions
Ankur Gupta, Head Marketing & Communications
Ken Research is a Global aggregator and publisher of Market intelligence research reports, equity reports, data base directories and economy reports. The company is engaged in data analytics and aids clients in due-diligence, product expansion, plant setup, acquisition intelligence to all the other gamut of objectives through our research focus.
27A, Tower B-2, Spaze I Tech Business Park, Sohna Road, sector 49 Gurgaon, Haryana - 122001, India
This release was published on openPR.
Permanent link to this press release:
Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.
You can edit or delete your press release Industrial Construction in the UAE to 2019: Market Forecast here
News-ID: 343831 • Views: 1317
More Releases from Ken Research Pvt Ltd
Paid and Free Press Release Submission Site, Free Press Release Distribution Sit …
The press releases have uninterruptedly been one of the effective approaches to positively gain the robust, worldwide coverage for your enterprise, services, products, brand and services. It is all connected to the comprehensive details, though you need to make sure your Press Release only goes out to the accurate, effective productivity press outlets. In addition, the press release submission effectively discusses to the writing regarded to the fresh events, services,
Surge in the Number of New Product Launches Coupled with Expansion of R&D Capabi …
o It is anticipated that France, Spain and Italy would dominate the agrochemical market in the region by the end of 2025, owing to high economic activity, crop production activity and presence of main manufacturing facilities of major international players in top European countries. o The Biopesticide Market in the region is expected to register a double digit CAGR, close to 13% on the basis of sales volume between the 2019 and
UAE Real Estate Industry Research Report: Ken Research
Increasing Demand for Co-Working Office Space and Integration of Technology will Drive the UAE Real Estate Space in the coming years: Ken Research o Based on global growth in co-working space, it is anticipated that UAE will experience an addition of co-working space between 320,000 square feet to 530,000 square feet in the coming years. o The direct contribution of travel and tourism is forecasted to rise by 4.9% per annum to AED 264.5
Growing Ageing population coupled with Per Capita Health Expenditure and Favorab …
o The stabilization and recovery of Economy from Economic Crisis that happened in 2015, will positively impact the Brazil Pharmaceuticals Market as it will increase the healthcare spending of government and per capita health expenditure in Brazil. o International Companies will account for a larger market share in terms of revenue in future largely due to the amount of investments these companies are making every year in Research and Development so as
More Releases for UAE
wifi solution in uae
Welcome to MAK, Wifi solutions provider in UAE. We bring everything that you would expect from an internet service provider – a highly professional installation and setup, high internet speed, a reliable network, great technical support and customer service to create a remarkable experience for the users, thereby remaining the most trusted WiFi Solutions provider in Dubai and across UAE. Designing Efficient and Cost Effective Home Wifi Networks Keep the connections to
AdWords agency in UAE
Google AdWords PPC is one of the most popular pay per click package in search platform. It is beneficial to your boosting traffic, clicks, and conversions. In additions, it is also an efficient way to tell people about your brand. NFINITY8 is one of the expert AdWords agency in UAE. We do in-depth keyword research for your brand to reach your target customers. From designing to bidding and implementation; Our
Instagram Marketing in UAE
Instagram Marketing is becoming more popular in growing brand awareness. Not only has millions of users, it has also high engagement rate for branded content. http://bit.ly/2x189Oi Instagram’s user base in the UAE is growing faster than most countries. It has risen by 60 percent from last year as against a worldwide increase of 40 percent.” As of January 2017, Instagram users in the Arab countries reaches 7.1 million where 17% of the users
Digital Marketing in UAE
NFINITY8 just published a blog Benefits of Digital Marketing http://bit.ly/2u1DKOw Digital marketing is the most powerful and innovative form of marketing for the growth of your business. It is the best way to reach your potential customers. It could be from google search, social media marketing services, email and online advertising in short Digital Marketing is a term for all your online marketing efforts. Building a website with Search Engine authority, loyal
Digital Marketing in UAE
NFINITY8 just published blog Top reasons why SEO is important for your business. This is about What will attract visitors to your website than to a competitor’s website? http://bit.ly/2HIeiAD Search Engine Optimization is an effective and affordable strategy to improve a website’s ranking in search engine results page. As per CTR study, 75% of people never scroll past the first page of a Google search. It is clear that every business
Adwords Agency in UAE
NFINITY8 is one of the expert AdWords agency in UAE. We do in-depth keyword research for your brand to reach your target customers. From designing to bidding and implementation; Our Adwords professional team will do all the campaign for your advertisements. Our services include: Google Adwords PPC / Campaign Monitoring - One of the most effective ways to reach new customers and grow your business. Bidding - The good thing about