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Influx of Foreign Investment in Infrastructure to Drive Commercial Construction Industry in UAE: Ken Research

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UAE construction market is expected to grow on a faster pace fueled by massive spending on infrastructure. Dubai’s planned real estate projects are progressing drastically too fulfilled planned infrastructural goals of 2020. – PowerPoint PPT presentation

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Title: Influx of Foreign Investment in Infrastructure to Drive Commercial Construction Industry in UAE: Ken Research


1
Influx of Foreign Investment in Infrastructure to
Drive Commercial Construction Industry in UAE
Ken Research
2
Tremendous expansion of commercial construction
sector of UAE Is recorded in past 15 years
because of rise of GDP of UAE and increase in
price of oil. This expansion of UAEs commercial
construction sector is forecasted to progress
further since Dubai is hosting world expo 2020
which would improve both construction sector and
GDP of UAE. Ken Research announced its latest
publication on Commercial Construction in the
UAE to 2019 Market Forecast which aptly
elucidates the latest scenario commercial
construction industry of UAE.The publication
outlines the historic and forecast market value
of UAEs commercial construction industry, scope
and overview of construction industry and factors
driving its expansion.
3
Looking at GCC nations, United Arab Emirates is
second largest economy in Arab world after Saudi
Arabia with gross domestic product of USD 570
billion in 2014. Government of Emirates announced
policies to diversify the economy from
oil-reliant trading nation to one which is
tourism and service oriented resulting in
property boom after 2004. Fast pace construction
in Dubai has turned it into one of the fastest
growing city in the world. Construction sector of
UAE is fifth largest sector in its economy. From
modern marvels like BurjKhalifa to spectacular
and most luxurious man made islands Dubai has it
all. The construction sector of UAE is broadly
classified into five subsectors i.e. commercial,
industrial, infrastructure, residential and
institutional. This report seeks to examine
commercial construction sector of emirates and
aims to forecast market value data for the
commercial construction industry, including a
breakdown of the data by construction activity
(new construction, repair and maintenance,
refurbishment and demolition).
4
  • Overview of UAEs commercial construction
    industry
  • UAEs commercial real estate is broadly
    categorized into leisure, retail, office,
    industrial, healthcare and multifamily
    (apartments) real estate. UAE has registered an
    amazing business vision towards creation and
    expansion of commercial property which has
    consequently led to stupendous growth in
    construction sector. This fast-paced expansion of
    commercial construction sector of UAE is
    explained below
  • In early 2000s, crude oil prices were quite
    strong and played a pivotal role in rapid
    economic growth in emirates nations. Thus, focus
    of these nations concentrated on gradual shift
    from reliance on hydrocarbon and oi sector
    towards diversification which led to boost in
    real estate and construction sector. As a
    consequence of rapid rise in GDP and boom in real
    estate sector, CAGR of UAEs business service ad
    real estate sector recorded growth of 20 between
    2003-2007.

5
  • Commercial construction industry was worst hit by
    global economic recession of 2007 accompanied by
    falling oil prices causing stagnancy and slowdown
    of economic growth and closure and delaying of
    many real estate projects in UAE.
  • Economy grew beautifully after the impact of
    crises lost its momentum. In 2011, highest
    construction project value was recorded in UAE
    (USD 319.1 billion), marking revival of both
    commercial and residential real estate industry.
    Commercial construction sector grew rapidly after
    2012 and UAE became unbeaten leader of
    construction industry in the world. Major
    commercial and residential projects undertaken
    during this period include Dubai logistics city-
    office park, Burlington tower, Central Market
    Towers- Trust Tower, Al Falah, The Pentominium
    Tower, etc.

6
  • Future of Commercial Real Estate
  • Growth in UAE is expected to remain healthy and
    stable and economy is expected to grow at 6.6 pa
    even though oil prices are falling. Further
    benefit to commercial construction sector is
    expected from high scaleBut, one can observe
    fading optimism in UAEs construction industry
    due to falling oil prices.
  • Key factors driving growth of UAEs commercial
    construction industry
  • Rise in both domestic and foreign investment in
    commercial real estate
  • Huge influx of domestic and foreign investment in
    infrastructure development projects has been
    witnessed since Dubai is hosting world expo in
    2020. Thus, huge infrastructural and commercial
    construction projects with massive expenditure
    have been undertaken in UAE in order to make 2020
    world expo project successful. Many such
    multi-billion projects include blue waters
    island, Dubai theme parks, Aladdin city, museum
    of the future, etc.

7
  • Rise in domestic GDP leading to rise in demand
    for commercial real estate.
  • UAE is second most prosperous Arab nation after
    Saudi Arabia. Both oil ad non-oil sectors are
    contributing to continuous rise in Gross Domestic
    Product of UAE and this has led to sky rocketing
    of demand for commercial and non-commercial real
    estate in UAE.
  • With sharp rise in GDP gigantic increase in
    demand for commercial real estate like leisure
    and hospitality buildings, retail buildings,
    offices, healthcare buildings (like medical
    centers), etc. have been observed. This has led
    to breakthrough in commercial construction as
    well as residential construction industry of UAE.
     
  •  Tourism and business demand for extravagant real
    estate.
  • UAE is a fashionable tourist destination for
    business and leisure. This has led to
    construction of several lavish tourist
    attractions contributing to growth of commercial
    construction industry in UAE.

8
  • In 2013, construction of extravagant blue water
    began in Dubai with worth of USD 1.6 Billion by
    Meeras to fulfill ever increasing demand of
    luxury hospitality and leisure destinations.
  • World auto expo 2020
  • UAE construction market is expected to grow on a
    faster pace fueled by massive spending on
    infrastructure. Dubais planned real estate
    projects are progressing drastically too
    fulfilled planned infrastructural goals of 2020.
    Major projects like Al Maktoum Airport and Jebel
    Ali Airport would drive more activity in
    construction sector.
  • Key topics covered
  • Detailed insights of UAEs commercial
    construction sector.
  • Factors causing boost in demand for commercial
    real estate.
  • Major commercial real estate of Emirates.
  • Future of commercial real estate of UAE.

9
To know more click on following
link https//www.kenresearch.com/manufacturing-a
nd-construction/infrastructure/commercial/29569-97
.html Related links https//www.kenresearch.com/
manufacturing-and-construction/infrastructure/comm
ercial-construction-india/12926-97.html https//w
ww.kenresearch.com/manufacturing-and-construction/
real-estate/commercial-construction-qatar/23554-97
.html Contact Ken Research Ankur Gupta, Head
Marketing Communications query_at_kenresearch.com
91-124-4230204
10
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