A report by Dubai’s Economy expected that the construction sector in the emirate will grow by 1.7% this year, explaining that the sector’s growth reached more than twice the rate of real GDP growth with investment, in the context of preparations to host the Expo 2020 Dubai, and the continued increase in retail space and units Residential offered.
The report, of which Emirates Today obtained a copy, stated that the construction sector has played an important role in developing infrastructure, housing, schools, hospitals, hotels, and other assets in Dubai during the past two decades.
He stated that construction is the most dense sector in terms of employment in Dubai, indicating that the number of workers in it amounted to about 607 thousand and 640 workers during 2018.
The report added that small, medium and micro companies (less than 50 workers) play a vital role in the construction sector, as they currently number 12 thousand companies, which constitute 91% of the total number of construction companies operating in Dubai, pointing out that small and micro companies employ what It reaches 146 thousand workers, which represents about 26% of the total number of workers in the sector.
He mentioned that the construction sector promotes the growth of demand for the outputs of other economic sectors, indicating that the sector has a high degree of interdependence with the rest of the sectors, and therefore any economic boom in the construction sector has a multiplier effect, as there is demand for products from other sectors.
The report pointed out that the expansionary policy of the Dubai government aims to increase government spending, in order to create a lasting economic impact, by organizing the Expo 2020 exhibition, and then construction projects for the upcoming event.
He pointed out that a number of huge current projects will increase the demand for the construction sector, including the Dubai Creek project which includes the development of a residential and shopping area around the Dubai Creek Tower, which is expected to become a new global icon, and construction of the new Mohammed bin Rashid City has also begun, Which will include residential communities and commercial spaces, along with 1500 villas.
SMEs play a vital role in the construction sector.