Special Features
Construction sector to contribute 11.1% to UAE’s GDP in 2015
After going through a slowdown during the global financial crisis in 2008 and with the current recovery in GCC economies, the UAE construction industry is projected to exhibit sustainable growth prospects in the next few years, finds out a recent Dubai Chamber of Commerce and Industry study.In its analysis of the recent trends of the UAE construction industry, the study links the importance of UAE construction industry to the domestic economy stating that as one of the most rapidly growing economies in the Middle East, the UAE has experienced enormous investments in the construction industry from public and private enterprises during the past few years.
Specifically, construction sector as a percentage of GDP of the UAE reached 10.6% in 2008 and 10.3% in 2011 while for 2015 and 2021 the sector’s contribution as a percentage of UAE GDP is projected to record 11.1% and 11.5% respectively.
According to the International Monetary Fund (IMF), the population of UAE is expected to reach 6 million by 2015 from 5.4 million in 2010 while the increase in expatriate population, which accounts for more than 80% of the country’s population, constitute the main growth drivers for increasing demand for residential and commercial property units in the country.
Added to that, the growth in real GDP is projected by the IMF to reach 4.4% in 2015 from 3.3% in 2011, signifying a revival of the overall economy which augurs well for the construction industry, says the study.
In 2011, the UAE recorded the highest construction project value, reaching USD 319.1 billion accounting for 51.1% of the total construction project value in top 100 projects in the GCC region. Indicative of the above statement is the list of the key construction projects both commercial and residential.
