DUBAI, 26th November, 2019 (WAM) — Expo 2020 Dubai and government-led infrastructure projects were the key factors driving the growth of Dubai’s construction sector in 2018 and 2019, and this trend is expected to continue over the next two years, according to new analysis released by the Dubai Chamber of Commerce and Industry at a briefing organised for delegates attending the Big 5 exhibition.
The analysis, based on recent data from BNC, IMF, Haver Analytics and Fitch Connect, revealed that the construction sector contributed an estimated 6.4 percent to Dubai’s GDP in 2018. Currently, there are 4,792 active projects in Dubai, accounting for 42 percent of the UAE’s total projects.
Other key growth drivers for Dubai’s construction market include the emirate’s strong economic fundamentals and diversification strategy, a steady increase in population and the number of tourists, sustained infrastructure investment over the medium term and major government investments in transportation.
Most Expo 2020 related infrastructure projects are either under construction or completed, while a majority of the contracts are for building works located at the Expo site.
In addition, the findings showed that the UAE leads the GCC in the value of awarded contracts for 2019 as the country is estimated to have US$48.4 billion worth of contracts in the pipeline, followed by Saudi Arabia ($40.2 billion) and Kuwait ($15.8 billion). The UAE outperforms other countries in the region when it comes to the contribution of its construction sector to national GDP with this figure reaching $33.2 billion in 2018.
The annual briefing, held at the headquarters of the Dubai Chamber, was attended by 100 delegates from more than 16 countries. The event provided an ideal platform for industry stakeholders to learn more about Dubai’s economy, business environment and the construction market.
Addressing delegates during the event, Hassan Al Hashemi, Vice President of International Relations at Dubai Chamber, noted that the strong participation at the briefing and Big 5 exhibition reflected growing international interest and confidence in Dubai’s economy and construction market.
Al Hashemi described Dubai as a land of opportunity for stakeholders in the global construction industry and highlighted the various competitive advantages offered by the emirate such as its world-class infrastructure, business-friendly environment and 30-plus free zones.