Consolidation leading to growth as new norms bed in
The Middle East as a region has had much to contend with leading to mixed performances and sentiment in 2017. But new political and economic norms should settle in 2018 and lead to consolidation and stronger growth.
Recovering oil prices should support government spending as it looks to infrastructure and economic development. Projects that help the UAE diversify away from oil and gas will drive construction activity, directly and indirectly.
Hosting the World Expo in 2020 has prompted investment in related infrastructure. In 2015, it announced plans to invest over USD8.7bn to construct the Expo site and other related facilities. The Expo is also driving hotel construction.
Work is still underway on Abu Dhabi’s new terminal, costing USD3.5bn and due for completion in late 2019. It will double the airport’s capacity.
|Cost escalation 2017–18:||2.0%|
|Cost escalation 2018–19:||2.0%|
|Location factor (USD):||43.2|
The modest recovery in oil prices has prompted a marginal rise in government spending and major projects are planned for Al Maktoum and Dubai South as a whole. There are also plans for a new housing development ‘Al Riyadh City’ – a 8,000ha project able to house 200,000 UAE citizens.
This content is part of the International construction market survey 2018