UAE construction sector set to boom with Dh127b projects in tender phase
In Dubai alone, different projects worth $16.3 billion (Dh59.8 billion) are in the tender stage and $111.1 billion in construction phase.
The UAE's construction industry is poised to witness strong growth in coming years as more than $34.6 billion (Dh127 billion) worth of urban, industrial, transport, utilities and oil and gas projects are in the tender phases.
While $9.7 billion (Dh35.6 billion) worth of building projects are in tender stage in the country, says a new report.
Overall, 7,488 building projects worth $228 billion (Dh837 billion) are currently in concept, design, tender, under construction, and on hold stages by June 2017, according to BNC Network's latest figures released on Monday.
"The strong project pipeline is a reflection of the healthy construction sector, despite weaker global economic growth scenario - an indication that the UAE real estate and construction sectors are defying the global trend," said Avin Gidwani, CEO of BNC Network.
Dh60 billion tenders in Dubai
Building projects include all types of commercial and residential buildings but excluding those catering to education, healthcare, hospitality, retail sectors.
In Dubai alone, different projects worth $16.3 billion (Dh59.8 billion) are in the tender stage; $111.1 billion in construction phase; $43 billion in design stage and $38.6 billion in concept level, according to BNC Network's figures.
"While the lower oil price might have dampened the investor appetite, developers and contractors are going ahead with the building projects as planned. A number of these buildings are being developed to meet the anticipated rush during the Expo 2020 mega exposition," Gidwani added.
The report showed that 5,276 projects worth $99.4 billion (Dh364.79 billion) are currently under construction and tendering phase in the UAE. Of the total, 7,488 projects, 1,378 buildings, worth $89.9 billion (Dh330 billion) were on hold, the report showed.
Around 1,059 building projects belong to the high-rise category rising above 15 floors with a combined value exceeding $100 billion (Dh367 billion). The number of mid-rise projects with floor levels of 4-14 storeyed buildings is 2,483 projects with a value of $66 billion (Dh242.22 billion) while the number of low-rise projects stood at 3,946 with a value of $61.9 billion (Dh227.12 billion).
"Most of these buildings are expected to be completed by October 2020 - before the World Expo 2020 as the country gears up to handle the biggest inbound tourist rush unprecedented in its history," Gidwani said.
In June, 24 building projects with a combined estimated value around $560 million (Dh2 billion) were put on hold in the UAE. While a total of 57 building projects with a combined estimated value of $2.2 billion (Dh8 billion) moved to construction from other stages during the month. A total of 292 building projects with a combined estimated value of $3 billion (Dh11 billion) were completed during the month.