UAE construction market bustling

Dubai: Despite the global slowdown, the UAE continues to be one of the most active construction markets in the world with more than 750 projects underway and 450 recently completed, according to a new report by Dubai-based research house Proleads Global.

The report forecasts stability returning to the sector this year with some recovery in cash flow next year.

The study identifies a slowdown in new projects in the commercial and retail, education and healthcare projects being placed on hold more often than in the past, a slowdown in leisure and entertainment and an increasing rate of cancellations in the residential sector.

The study provides statistics to back the anecdotal evidence of the impact of the slowdown. Insights United Arab Emirates: An Investigation into the Current and Future State of the Civil Building Construction Industry examines more than 1,900 projects with a total budget of more than $1 trillion (Dh3.67 trillion).

The results of the most recent study of its type reflects the continuing impact of the economic slowdown on the UAE construction market.

"It is vital to know how fast and by how much the industry is changing, not just for the industry and its suppliers but also for planners, governments and financial institutions," he added.

"Projects are always put on hold even during boom times but it is the rate at which it occurs that enables us to forecast when we might see an upswing.

"From our cash flow projections for the industry, we see the UAE construction market beginning to stabilise at current levels and showing some signs of recovery during 2010."

The Insights report published by Proleads Global is priced at $390 and more information can be had from www.projectsandleads.com