Future of the UAE Institutional Construction Industry: Ken Research
Posted on 12 August 2016 by KenResearch Manufacturing And Construction,
Ken Research announced its latest publication on, Institutional Construction in the UAE to 2019: Market Forecast which provides a detailed analysis of the UAE Institutional Construction industry. Category-wise coverage of different segments in the industry is also included in the report. The projects launched by the government for enhancement of the sector are explained in the report. The report enables the reader to interpret future outlook on how the market will shape up by the end of this decade.
The UAE construction industry is the third largest industry in the country after oil and trade. It is one of the fastest growing economies and has one of the largest construction industries in the Middle East. Construction sector contributed 11.1% to the UAE’s GDP in 2015 and is expected to contribute even more in the coming years. The key growth drivers in the construction industry are public sector investments in energy, communications and transport infrastructure. In value terms the UAE is at the second position in the Middle East. The following figure shows the value of the construction industry in 2013.
Value of the Projects Planned or Underway in Middle East
The Bureau of International Expositions (BIE) in November 2013 announced Dubai as the host city of the world’s Trade Expo 2020. Increased spending on infrastructure will drive quick growth in the UAE’s construction industry. Overall the UAE has a low level of growth in institutional construction compared to residential and commercial construction. Although Abu Dhabi has seen progress in two important healthcare projects, the Cleveland Clinic and Al Mafraq New Hospital, which will together provide over 1000 new beds for the capital. The following figure shows construction spending per sector in the UAE in 2014.
Sector wise Construction Spending
Key Macro Economic Factors Driving UAE Institutional Construction Industry
Construction is mainly boosted by the spending for the infrastructure development required for World Expo 2020. Transport, hospitality, retail and commercial sectors will be some other infrastructure segments where spending is expected to increase. Institutional construction will have major boom in Abu Dhabi.
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