A study by the Dubai Chamber of Commerce and Industry stated that Dubai acquired 60% of the announced construction projects until December 2019, indicating that the value of projects in the emirate during the period from (2014 to 2019), i.e. (six years), amounted to $ 239.3 billion ( 880.4 billion dirhams). Commercial buildings projects, especially hotels, as well as projects related to the preparation of the Expo 2020 have been taken over mostly.
Future prospects
In detail, a study by the Dubai Chamber of Commerce and Industry stated that the future prospects for the construction sector in the emirate are positive, expecting the construction sector to maintain its vital momentum that started in 2018, after the Expo 2020 Dubai exhibition, especially with the emergence of the category of green and sustainable construction projects, and adoption The use of new technology in the field of construction, especially in public infrastructure projects.
The study, of which the Emirates Today obtained a copy, confirmed that the construction sector in Dubai continues to play an important role in the sustainable economic development of the emirate, noting that over the years, Dubai was able to establish a world-class infrastructure that supported the growth and prosperity of other sectors. And the economy in general.
She added that the construction sector commitments in Dubai, both in terms of inputs and outputs, are strong and influence the performance of other economic activities in the emirate.
Urban expansion
The study pointed out that the sector has evolved over time, in line with urban expansion, and Dubai aspires to become the smartest city in the world by 2025, indicating that by adopting the sustainable construction model, the emirate was able to maintain high standards for infrastructure and construction, with special consideration for impact In the environment.
She explained that during recent years, most of the construction projects in the Emirates have incorporated programs to reduce energy consumption, such as: advanced insulation materials or natural energy generation technology such as solar panels, and the use of new materials in buildings in order to preserve the environment, thus helping to achieve the overall development goals Sustainable.
The construction sector
The study showed that over the years, the construction sector in the UAE has maintained its position as the largest construction sector in the countries of the Gulf Cooperation Council, in terms of total added value and the value of contracts awarded to it. In 2018, the total added value of the sector in the UAE was about 32 billion dollars (117.7 billion dirhams), followed by Saudi Arabia with about 30 billion dollars. The UAE also topped the GCC countries in terms of the value of construction contracts granted to it in 2019.
In 2018, the combined percentage share of the construction and real estate sector in Dubai, out of the total added value of the emirate, was about 13.6%, as the share of the construction sector was 6.4%, and the real estate share was 7.2%, as the services category in the value chain of the construction sector represents. The study said that at the national level, the construction sector in Dubai constitutes, on average, about 21% of the total added value of construction in the Emirates.
As for the annual growth rates, the construction sector in Dubai recorded a good growth rate of about 4.5% in 2018, which is the highest rate recorded during the past five years. This can be attributed mainly to construction projects related to the Expo 2020.
The study indicated that, over the past few years, the Dubai government pursued an expansionary fiscal policy, which gave priority to infrastructure development, in the context of its pursuit of economic diversification, as in 2018, spending on infrastructure reached about $ 2.5 billion (9.2 billion dirhams), and constitutes That's 16% of all government budget spending. The positive growth of the construction sector in the emirate is also due to the completion of many real estate projects by the private sector.
Based on the latest project data released by FitchConnect, Dubai acquired 60% of the announced projects, as of December 2019.
Over the period (2014-2019) commercial buildings projects, especially hotels and retail stores, continued to control the projects in the planning stage in the emirate, which will be implemented in the next few years. And it surpassed other secondary sectors by a large margin, as the value of commercial building projects amounted to $ 111.7 billion (411 billion dirhams), and the total number of projects was 177 projects. Dubai projects in the category of residential buildings and industrial establishments are the second largest secondary sectors in terms of value and number. The value of these joint projects amounted to about 38 billion dollars (139.8 billion dirhams), and their total number is 155 projects. Transport projects also dominated the infrastructure category in Dubai, with a value of about $ 54.1 billion (199 billion dirhams), and this can be explained by the fact that most of these transportation projects are linked to the Expo 2020 organization. As for the second largest category of infrastructure projects in Dubai, energy and utilities projects, with a total value of $ 35.5 billion (130.6 billion dirhams), were approximately 46 projects, with a total value of these projects amounting to $ 239.3 billion (880.4 billion dirhams).
Economic fluctuations
A study by Dubai Chamber of Commerce and Industry confirmed that due to the openness of the UAE economy, there is an impact of global economic fluctuations, especially those related to oil and commodity prices, interest rates and economic cycles of the main trading partners on performance and the overall demand of the state's economy.
60%
Of the announced construction projects, through December 2019, it was acquired by Dubai.