Opinion | Editorials
Lifting the weight off builders' backs
Waiving of import duties on cement and steel will give a boost to construction sector
The government's decision to extend import duty waiver on steel and cement across the UAE is expected to help the country's growing construction sector, although it is unclear if importers would pass that benefit on to the industry. The UAE is a net importer of steel and steel products, while it imports a minor portion of its cement needs.
The rising price of steel and cement in recent months has forced the government to step in. Although this may not be the ultimate solution to the problem, compounded by the falling value of the US dollar and the Gulf currencies, soaring inflation due to rising demand and inadequate supplies, the government has shown a strong political will in supporting the industry by waiving the customs duty - the first by any government in the region.
This reflects the government's firm determination to stand by the business community in time of need.
However, in the absence of a market monitoring mechanism, the move's benefits might not reach its intended beneficiaries, if importers and wholesalers do not pass it on to the contractors and sub-contractors. A strong vigilance on the market, thus, could help the construction sector in benefitting from this.
More from Editorials
More from Opinions
Opinion Editor's choice
-
Egyptians must reject foreign meddling
By Tariq Ramadan, Special to Gulf News
Presidential election may turn out to be less a new chapter in a democratic future than an old chapter complete with a stage-managed outcome
-
Moderates may gift Egypt to Islamists
By Linda S. Heard, Special to Gulf News
Liberals cannot afford to sit at home or in cafes watching queues lengthen outside polling stations. They must quit complaining and vote with their feet
-
Is Al Maliki serious about democracy and more words?
By Mohammad Akef Jamal, Special to Gulf News
He is pushing towards a military showdown with the Kurds at a time when they are stronger than ever before


