Opinions | Editorials
Lifting the weight off builders' backs
Waiving of import duties on cement and steel will give a boost to construction sector
- Gulf News
- Published: 00:41 March 18, 2008
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.
Share this article
More from Editorials
More from Opinions
Popular in Opinions
-
Opinions
Speak Your Mind: Cyberbullying
How can we protect our children from being Cyber bullied?
Opinion Editor's choice
-
Mosque razing ruling exposes India polity
It would be tragic if those who demolished the Babri Masjid went scot-free
-
All eyes on Obama
Failure to outline an effective strategy at West Point could cost the US president not only victory in Afghanistan, but the White House itself
-
A year after 173 defenceless people were killed
Mumbai itself is far from safe from another deadly attack, even though the level of security consciousness of the average Mumbaikar has been raised since 26/11
