Construction in the UAE - Key Trends and Opportunities to 2017

Published: Feb, 2014 | Pages: 80 | Publisher: Timetric
Industry: Construction | Report Format: Electronic (PDF)

Synopsis
This report provides detailed market analysis, information and insights into the UAE construction industry including:
The UAE construction industry's growth prospects by market, project type and type of construction activity
Analysis of equipment, material and service costs across each project type within the UAE
Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the UAE construction industry
Assessment of the competitive forces facing the construction industry in the UAE, and profiles of the leading operators
Data highlights of the largest construction projects in the UAE.

Summary
The UAE construction industry increased in value at a CAGR of 0.49% during the review period. This growth was supported by public investments in infrastructure, commercial and industrial construction. The construction industry's growth rate is expected to remain positive over the forecast period, as a result of increased government expenditure on developing infrastructure and industrial construction in the country. The construction industry's output in the UAE is expected to record a CAGR of 4.67% in nominal terms over the forecast period .
Scope
This report provides a comprehensive analysis of the construction industry in the UAE. It provides:
Historical (2008-2012) and forecast (2013-2017) valuations of the construction industry in the UAE using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
Analysis of key construction industry issues, including regulation, cost management, funding and pricing
Assessment of the competitive environment using Porter's Five Forces analysis
Detailed profiles of the leading construction companies in the UAE
Reason To Buy
Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
Assess market growth potential at a micro-level with over 600 time-series data forecasts
Understand the latest industry and market trends
Formulate and validate business strategies using Timetric's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors
Key Highlights
The UAE is one of the fastest-growing economies, and the third-largest construction industry in the Middle East. The construction industry in the UAE is the third-largest industry after oil and trade. More than 6,000 construction companies operate in the country, with most construction activities taking place in Abu Dhabi and Dubai. According to the Dubai Chamber of Commerce and Industry, the construction industry is expected to contribute 11.1% to the UAE's GDP in 2015, as compared to 10.3% in 2011. Public sector investments in energy, communications and transport infrastructure are expected to be the key drivers for growth in the industry over the forecast period. Private sector investments are likely to remain subdued in 2013, due to low consumer and business confidence.
According to the IMF, in 2011, the UAE topped the list in terms of project value in the Gulf Cooperation Council (GCC) region with a 51.1% share, followed by Saudi Arabia with 35%, Qatar with 8.9%, Oman with 3.2%, and Kuwait with 1.8%. The UAE accounted for total value of AED1,171.7 billion (US$319.1 billion) of projects in the industry. The UAE has major construction projects in residential and infrastructure markets. The most prominent projects are the expansion of Dubai international airport, and the redevelopment of Abu Dhabi international airport.
According to the IMF, the population in the country is anticipated to increase from 5.4 million in 2010 to 6 million by 2015, in line with the increase in the expatriate population. Expatriates account for 80% of the total population in the UAE, emerging as the major key driver for growth in the demand for residential and commercial buildings in the country. The residential and commercial markets in the UAE's construction industry recorded an increase in the number of units, but, over the forecast period, it will gain momentum with strong economic growth, increasing disposable incomes and a rising population.
The UAE is a popular destination for business and leisure. The commercial construction industry has been flourishing, as a number of high-profile projects have either been announced or are underway. In May 2013, Meeras began the construction of its Bluewaters Island in Dubai, at an estimated value of AED5.9 billion (US$1.6 billion). Construction is set to be completed in the first quarter of 2018. The UAE's retail sector is a strong component of the country's commercial industry. According to AT Kearney's 2012 Global Retail Development Index, which ranks the 30 best-performing developing countries in terms of retail expansion, the UAE emerged as the fifth-strongest market.
In November 2013, the Bureau of International Expositions (BIE) announced Dubai as the host city for the world's Trade Expo 2020. UAE's construction industry will record quick growth as a result, driven by increased spending on infrastructure.
A number of key projects have recently been announced. In February 2013, Arabtec announced that it had won a AED1 billion (US$272 million) contract from the National Investment Corporation to construct a 39-story tower in Abu Dhabi. The hotel will include 563 rooms and 249 apartments, with construction set to be completed in 2016. In November 2013, Arabtec was awarded a AED1.8 billion (US$490 million) contract to build a 77-story, 369m tower in Dubai. Construction is underway and is set to be completed in 2017. In December 2013, Flora Hospitality announced plans to construct four new properties in Dubai, to a value of AED750 million (US$204 million), during 2014 -2016.

 1 Executive Summary
2 Market Overview
2.1 The Domestic Economy
2.2 Key Trends and Issues
2.3 Key Construction Indicators
2.4 Benchmarking by Market Size and Growth
2.5 Price Dymics
2.5.1 Salaries
2.5.2 Equipment
2.5.3 Materials
2.5.4 Energy
2.6 Porter's Five Forces Alysis
2.6.1 Bargaining power of suppliers - medium to high
2.6.2 Bargaining power of buyers - medium to high
2.6.3 Barriers to entry - low
2.6.4 Intensity of rivalry - medium to high
2.6.5 Threat of substitution - high
2.7 Demographic Profile
3 Commercial Construction
3.1 Performance Outlook
3.2 Key Trends and Issues
3.3 Data and Project Highlights
4 Industrial Construction
4.1 Performance Outlook
4.2 Key Trends and Issues
4.3 Data and Project Highlights
5 Infrastructure Construction
5.1 Performance Outlook
5.2 Key Trends and Issues
5.3 Data and Project Highlights
6 Institutiol Construction
6.1 Performance Outlook
6.2 Key Trends and Issues
6.3 Data and Project Highlights
7 Residential Construction
7.1 Performance Outlook
7.2 Key Trends and Issues
7.3 Data and Project Highlights
8 Company Profile: Arabtec Holding PJSC
8.1 Arabtec Holding PJSC - Company Overview
8.2 Arabtec Holding PJSC - Business Description
8.3 Arabtec Holding PJSC - Main Services
8.4 Arabtec Holding PJSC - History
8.5 Arabtec Holding PJSC - Company Information
8.5.1 Arabtec Holding PJSC - key competitors
8.5.2 Arabtec Holding PJSC - key employees
9 Company Profile: Union Properties PJSC
9.1 Union Properties PJSC - Company Overview
9.2 Union Properties PJSC - Business Description
9.3 Union Properties PJSC - Main Services
9.4 Union Properties PJSC - History
9.5 Union Properties PJSC - Company Information
9.5.1 Union Properties PJSC - key competitors
9.5.2 Union Properties PJSC - key employees
10 Company Profile: Drake & Scull Intertiol PJSC
10.1 Drake & Scull Intertiol PJSC - Company Overview
10.2 Drake & Scull Intertiol PJSC - Business Description
10.3 Drake & Scull Intertiol PJSC - Main Services
10.4 Drake & Scull Intertiol PJSC - History
10.5 Drake & Scull Intertiol PJSC - Company Information
10.5.1 Drake & Scull Intertiol PJSC - key competitors
10.5.2 Drake & Scull Intertiol PJSC - key employees
11 Company Profile: tiol Petroleum Construction Company
11.1 tiol Petroleum Construction Company - Company Overview
11.2 tiol Petroleum Construction Company - Business Description
11.3 tiol Petroleum Construction Company - Main Products and Services
11.4 tiol Petroleum Construction Company - History
11.5 tiol Petroleum Construction Company - Company Information
11.5.1 tiol Petroleum Construction Company - key competitors
11.5.2 tiol Petroleum Construction Company - key employees
12 Company Profile: Emirates Roads Contracting LLC
12.1 Emirates Roads Contracting LLC - Company Overview
12.2 Emirates Roads Contracting LLC - Main Services
12.3 Emirates Roads Contracting LLC - Company Information
12.3.1 Emirates Roads Contracting LLC - key competitors
12.3.2 Emirates Roads Contracting LLC - key employees
13 Market Data Alysis
13.1 Construction Output and Value Add
13.1.1 Construction output by project type
13.1.2 Construction output by cost type
13.1.3 Construction output by activity type
13.1.4 Construction value add by project type
13.2 Commercial Construction
13.2.1 Commercial construction output by project type
13.2.2 Commercial construction output by cost type
13.2.3 Commercial construction output by activity type
13.2.4 Commercial construction value add by project type
13.3 Industrial Construction
13.3.1 Industrial construction output by project type
13.3.2 Industrial construction output by cost type
13.3.3 Industrial construction output by activity type
13.3.4 Industrial construction value add by project type
13.4 Infrastructure Construction
13.4.1 Infrastructure construction output by project type
13.4.2 Infrastructure construction output by cost type
13.4.3 Infrastructure construction output by activity type
13.4.4 Infrastructure construction value add by project type
13.5 Institutiol Construction
13.5.1 Institutiol construction output by project type
13.5.2 Institutiol construction output by cost type
13.5.3 Institutiol construction output by activity type
13.5.4 Institutiol construction value add by project type
13.6 Residential Construction
13.6.1 Residential construction output by project type
13.6.2 Residential construction output by cost type
13.6.3 Residential construction output by activity type
13.6.4 Residential construction value add by project type
14 Appendix
14.1 What is this Report About?
14.2 Definitions
14.3 Summary Methodology
14.4 Methodology
14.5 Contact Timetric
14.6 About Timetric
14.7 Timetric's Services
14.8 Disclaimer


List of Tables
Table 1: Benchmarking with Other Major Construction Industries 12
Table 2: Commercial Construction Project 1 - LDC - Legends In Dubailand Mixed-Use Development - Dubai 17
Table 3: Commercial Construction Project 2 - UAEG - Jebel Ali Theme Park Development - Dubai 17
Table 4: Commercial Construction Project 3 - AHG - Al Habtoor Palace - Dubai 17
Table 5: Industrial Construction Project 1 - EMAL - Aluminum Smelter Complex - Taweelah 19
Table 6: Industrial Construction Project 2 - ESI - Integrated Steel Complex - Abu Dhabi 19
Table 7: Industrial Construction Project 3 - TAKREER - Ruwais Carbon Black and Delayed Coker - Abu Dhabi 19
Table 8: Infrastructure Construction Project 1 - ADPC - Khalifa Port And Industrial Zone - Abu Dhabi 21
Table 9: Infrastructure Construction Project 2 - ADPC - Mi Zayed Port Redevelopment - Abu Dhabi 21
Table 10: Infrastructure Construction Project 3 - DOT - Integrated Public Transport Networks - Abu Dhabi 21
Table 11: Institutiol Construction Project 1 - SEHA - Al Mafraq Hospital - Abu Dhabi 23
Table 12: Institutiol Construction Project 2 - TDIC - Guggenheim Museum - Abu Dhabi 23
Table 13: Institutiol Construction Project 3 - EHA - Sheikh Khalifa Medical City - UAE 23
Table 14: Residential Construction Project 1 - UPC - Watani Residential Development - Abu Dhabi 25
Table 15: Residential Construction Project 2 - Ifahr - Kingdom of Sheba - Dubai 25
Table 16: Residential Construction Project 3 - KHEEL - Jumeirah Heights Development - Dubai 25
Table 17: Arabtec Holding PJSC, Key Facts 26
Table 18: Arabtec Holding PJSC, Main Services 28
Table 19: Arabtec Holding PJSC, History 29
Table 20: Arabtec Holding PJSC, Key Employees 30
Table 21: Union Properties PJSC, Key Facts 31
Table 22: Union Properties PJSC, Main Services 32
Table 23: Union Properties PJSC, History 33
Table 24: Union Properties PJSC, Key Employees 34
Table 25: Drake & Scull Intertiol PJSC, Key Facts 35
Table 26: Drake & Scull Intertiol PJSC, Main Services 36
Table 27: Drake & Scull Intertiol PJSC, History 37
Table 28: Drake & Scull Intertiol PJSC, Key Employees 39
Table 29: tiol Petroleum Construction Company, Key Facts 40
Table 30: tiol Petroleum Construction Company, Main Products and Services 42
Table 31: tiol Petroleum Construction Company - History 43
Table 32: tiol Petroleum Construction Company, Key Employees 44
Table 33: Emirates Roads Contracting LLC, Key Facts 45
Table 34: Emirates Roads Contracting LLC, Main Services 45
Table 35: Emirates Roads Contracting LLC, Key Employee 46
Table 36: UAE Construction Output by Project Type (AED Million), 2008-2012 47
Table 37: UAE Construction Output by Project Type (AED Million), 2012-2017 47
Table 38: UAE Construction Output by Cost Type (AED Million), 2008-2012 48
Table 39: UAE Construction Output by Cost Type (AED Million), 2012-2017 48
Table 40: UAE Construction Output by Activity Type (AED Million), 2008-2012 49
Table 41: UAE Construction Output by Activity Type (AED Million), 2012-2017 49
Table 42: UAE Construction Value Add by Project Type (AED Million), 2008-2012 50
Table 43: UAE Construction Value Add by Project Type (AED Million), 2012-2017 50
Table 44: UAE Commercial Construction Output by Project Type (AED Million), 2008-2012 51
Table 45: UAE Commercial Construction Output by Project Type (AED Million), 2012-2017 51
Table 46: UAE Commercial Construction Output by Cost Type (AED Million), 2008-2012 52
Table 47: UAE Commercial Construction Output by Cost Type (AED Million), 2012-2017 52
Table 48: UAE Commercial Construction Output by Activity Type (AED Million), 2008-2012 53
Table 49: UAE Commercial Construction Output by Activity Type (AED Million), 2012-2017 53
Table 50: UAE Commercial Construction Value Add by Project Type (AED Million), 2008-2012 54
Table 51: UAE Commercial Construction Value Add by Project Type (AED Million), 2012-2017 54
Table 52: UAE Industrial Construction Output by Project Type (AED Million), 2008-2012 55
Table 53: UAE Industrial Construction Output by Project Type (AED Million), 2012-2017 55
Table 54: UAE Industrial Construction Output by Cost Type (AED Million), 2008-2012 56
Table 55: UAE Industrial Construction Output by Cost Type (AED Million), 2012-2017 56
Table 56: UAE Industrial Construction Output by Activity Type (AED Million), 2008-2012 57
Table 57: UAE Industrial Construction Output by Activity Type (AED Million), 2012-2017 57
Table 58: UAE Industrial Construction Value Add by Project Type (AED Million), 2008-2012 58
Table 59: UAE Industrial Construction Value Add by Project Type (AED Million), 2012-2017 58
Table 60: UAE Infrastructure Construction Output by Project Type (AED Million), 2008-2012 59
Table 61: UAE Infrastructure Construction Output by Project Type (AED Million), 2012-2017 59
Table 62: UAE Infrastructure Construction Output by Cost Type (AED Million), 2008-2012 60
Table 63: UAE Infrastructure Construction Output by Cost Type (AED Million), 2012-2017 60
Table 64: UAE Infrastructure Construction Output by Activity Type (AED Million), 2008-2012 61
Table 65: UAE Infrastructure Construction Output by Activity Type (AED Million), 2012-2017 61
Table 66: UAE Infrastructure Construction Value Add by Project Type (AED Million), 2008-2012 62
Table 67: UAE Infrastructure Construction Value Add by Project Type (AED Million), 2012-2017 62
Table 68: UAE Institutiol Construction Output by Project Type (AED Million), 2008-2012 63
Table 69: UAE Institutiol Construction Output by Project Type (AED Million), 2012-2017 63
Table 70: UAE Institutiol Construction Output by Cost Type (AED Million), 2008-2012 64
Table 71: UAE Institutiol Construction Output by Cost Type (AED Million), 2012-2017 64
Table 72: UAE Institutiol Construction Output by Activity Type (AED Million), 2008-2012 65
Table 73: UAE Institutiol Construction Output by Activity Type (AED Million), 2012-2017 65
Table 74: UAE Institutiol Construction Value Add by Project Type (AED Million), 2008-2012 66
Table 75: UAE Institutiol Construction Value Add by Project Type (AED Million), 2012-2017 66
Table 76: UAE Residential Construction Output by Project Type (AED Million), 2008-2012 67
Table 77: UAE Residential Construction Output by Project Type (AED Million), 2012-2017 67
Table 78: UAE Residential Construction Output by Cost Type (AED Million), 2008-2012 68
Table 79: UAE Residential Construction Output by Cost Type (AED Million), 2012-2017 68
Table 80: UAE Residential Construction Output by Activity Type (AED Million), 2008-2012 69
Table 81: UAE Residential Construction Output by Activity Type (AED Million), 2012-2017 69
Table 82: UAE Residential Construction Value Add by Project Type (AED Million), 2008-2012 70
Table 83: UAE Residential Construction Value Add by Project Type (AED Million), 2012-2017 70
Table 84: Timetric Construction Market Definitions 72