Dubai: The UAE construction industry is witnessing a fast track growth with a groove of on-going projects, investment into green open spaces, and the strong government support, a report from RNCOS analysts said the market, which was estimated at $39.4 billion (Dh144.6 billion) in 2012, is expected to grow at a compound annual growth rate of around 9.5 per cent during 2012-2016.
Additionally, a new report released by EC Harris predicts that UAE’s construction market has returned to near full capacity, taking into account the UAE’s estimated real gross domestic product (GDP) growth, thriving industry sectors such as leisure and tourism, ability to raise debt funding, investment in major pipeline construction projects and construction tender price levels.
Moreover, favourable government policies, such as permitting non-UAE national freeholds and leaseholds are attracting Foreign Direct Investment (FDI) in construction. An increasing number of foreigners are now focusing on acquiring properties across the country, thereby contributing to the growth of the construction sector.
This positive turnaround of the UAE’s construction industry has led Danube Group, a leading construction and home interior company in UAE to record an increase of 15 per cent growth in its business. The increase brings the company one step closer towards achieving a revenue target of Dh1 billion by the year 2015.
“[The year] 2012 has been a momentous year for our business growth,” said Rizwan Sajan, Founder & Chairman of Danube Group. “The construction industry in UAE has always been a key source in driving growth for the nation’s economy. The developments in the construction industry are a positive indication of better revenues for the market. This will lead to extraordinary demand for building materials and technological innovations, thus boosting the economy further,” said Rizwan Sajan, Founder & Chairman of Danube Group.
Further, the country is witnessing massive investments from both public and private enterprises in the construction sector. Post the announcement of Mohammad Bin Rashid City which will comprise of a Universal Studios theme park, more than 100 hotels and the world’s biggest shopping mall, the construction sector in UAE is being fuelled by expansion.
In line with this, Danube also introduced the region’s largest Industrial Complex at Technopark, Jebel Ali. Strategically located to cater to the GCC markets, the Industrial Complex oversees an investment of Dh50 million which will help reduce UAE’s construction industry’s dependence on imported finished products as these will be custom-manufactured in the complex. Lately, the company has also been recognized for its exemplary performance and key initiatives rendered towards regional development, including the collaboration with Dubai Metro.
Moreover, the year 2012 has given rise to a myriad of developments in the construction industry across the Mena region with an anticipated $1.95 trillion worth of construction projected in the UAE for 2013. Aiming to maintain a sustained development in the industry, Danube will post a 15 per cent increase in its growth.
Also, the real estate projects in UAE are on a high, paving way for the growth of the construction industry. According to a Citi report, Dubai added real estate projects valued at over $110 billion (Dh404 billion) in November 2012 alone, taking the total preliminary stage projects in the UAE to $199 billion.