UAE construction industry could grow by 17% in 2014
Increased sustainability practices in construction expected to invite more foreign firms into UAE
UAE construction accounted for 10.3% of the total GDP in 2011
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Construction is expected to account for 11.5% of UAE’s GDP in 2021.
Miguel Guadalupe, chief operating officer at Dubai-based development firm, Pacific Ventures, said increased construction activity in the UAE will impact the country’s GDP in the future.
“After experiencing a downturn at the time of the global financial crisis in 2008, there has been a recovery in gulf economies,” said Guadalupe. “The UAE construction sector is expected to report sustainable growth in the coming years. Construction was 10.6% of UAE GDP in 2008 and 10.3% of UAE GDP in 2011. It is predicted to record 11.1% of UAE GDP in 2015 and 11.5% of UAE GDP for 2021.
“In 2013, the residential industry with $30.3 billion, commercial industry with $12.7 billion and education industry with $7.01 billion were the dominant industries (contributing to the GDP). A further increase of 17% in the construction industry and 18% in interiors industry is projected for 2014.”
A report released by Dubai FDI recently informed sustainability would be a major driver in the emirate’s future strategies, with programs such as the Integrated Energy Strategy expected to bring a 30% reduction in carbon emissions by 2030. Guadalupe said sustainability initiatives would also benefit the construction sector in the city. “UAE developers will ensure that they follow sustainable modes as there is a movement from talk to action.
“In the next few years, government policies of the gulf countries, notably of the UAE, are forecasted to appeal to more foreign companies to the construction industry,” he added.
