UAE construction sector to rebound in 2011

The UAE's construction is expected to bounce back in 2011 with the large number of construction projects set to be awarded this year, a study by Dubai Chamber of Commerce and Industry has revealed.

Quoting experts' observations, Dubai Chamber said projects worth $714.8 billion (Dh2.6 trillion) are currently either at design stage or underway in the UAE.

The second most active market in the GCC after the UAE is Saudi Arabia, with $283.8 billion worth of projects in the pipeline.

The statement said the government has been clear in its mandate to economically diversify the economy and the construction sector has played a critical part in this.

However, the global economic slowdown that took hold towards the end of 2008 brought an abrupt end to the UAE’s construction boom. Since then, many building projects have been cancelled or put on hold and there has been little in the way of new project awards.

Following a challenging period in 2009 and this year, construction developers in the UAE are expecting a more promising 2011 and beyond.

In recent months, firms are branching into new markets, switching focus from private to public sector schemes and forming new alliances in a bid to win work in an increasingly competitive environment.

This trend is expected to continue in the short term with the UAE government’s drive to stimulate the economy by spending heavily on infrastructural projects, particularly in Abu Dhabi.