Construction in the UAE - Key Trends and Opportunities to 2022

Synopsis
The UAE construction industry regained growth momentum in 2017, with output expanding by 3.9% in real terms - up from 3.0% in 2016. Growth during the review period (2013-2017) averaged 4.1% a year, and was supported by public and private sector investment in transport, commercial, residential and energy infrastructure projects, leading to an increase in demand for the UAE construction industry. 

The industry is expected to continue to expand over the forecast period (2018-2022), driven by investments in transport, energy and social infrastructure development projects under various programs such as the Strategic Plan 2021, the Energy Strategy 2050, Sheikh Zayed Housing Program, Dubai Tourism Strategy 2020 and the National Strategy for Higher Education 2030. The upcoming World Expo 2020, to be hosted by Dubai, is expected to be a major growth driver. 

Industry growth will also be driven by the UAE Vision 2021 and Abu Dhabi Economic Vision 2030, under which the government marks industrialization, diversification and privatization as growth opportunities. The government is investing in non-oil sectors to reduce the country's dependency on the oil and gas sector. This will support the growth of the construction industry over the forecast period. 

The industry's output value in real terms is expected to record a compound annual growth rate (CAGR) of 4.73% over the forecast period.

Summary

Timetric's Construction in the UAE - Key Trends and Opportunities to 2022 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 construction activity

• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the UAE construction industry

• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.


Scope

This report provides a comprehensive analysis of the construction industry in the UAE. It provides:

• Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in the UAE, featuring details of key growth drivers.

• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector

• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline. 

• Listings of major projects, in addition to details of leading contractors and consultants


Reasons To Buy

• Identify and evaluate market opportunities using Timetric's 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 strategy 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 country's residential construction market is expected to offer a positive outlook for the industry over the forecast period, as a result of population growth and subsequent need for new housing. According to the National Centre for Statistics and Information (NCSI), the total number of land plots granted for residential building construction rose by 2.9% from 26,535 in 2016 to 27,300 in 2017.

• Timetric expects energy and utilities construction market to register a forecast-period CAGR of 6.53% in nominal terms, driven by government efforts to increase renewable energy share in the country's total energy mix. In September 2017, the Financial Affairs and Energy Resources Council approved a plan to generate 10.0% of the country's total energy from renewable sources by 2025.

• In order to provide fast and reliable internet connectivity to residential and business communities in Muscat, in November 2017 the government-owned Oman Broadband Company approved the Oman Broadband Infrastructure Project. Under this, the government announced plans to invest OMR179.6 million (US$467.0 million) to develop fiber optic broadband cable.

• The need to address the growing demand for increased water supply in the country is expected to support the expansion of the water infrastructure category over the forecast period. According to the projections of Oman Power and Water Procurement Company (OPWP), demand for water resources in the country is expected to increase by over 9.5% until 2019.

• The total construction project pipeline in Oman as tracked by the Construction Intelligence Center (CIC), including all mega-projects with values above US$25 million, stands at OMR66.0 billion (US$171.7 billion). The pipeline, which includes all projects from the pre-planning to execution stages, has a healthy balance, with 56.3% of the total value in pre-execution and execution as of February 2018.