August 26, 2014

Large-scale Dubai property and infrastructure investment has helped the UAE retain top spot in the upcoming GCC Construction report 2015.

Summary:

  • The UAE retains its top spot in the forthcoming GCC Construction report 2015
  • $52 billion worth of construction projects have been issued in Dubai in the last year
  • The UAE will be the region's largest market for future projects between now and 2020

The UAE has retained its number one position in the Gulf's construction projects market.

According to the latest Meed Insight report, property investment in Dubai and the other emirates was already far more significant than second placed Saudi Arabia and the UAE also has the most projects in the construction pipeline.

Ed James, Head of Meed Insight and author of the Gulf Co-operation Council (GCC) Construction report 2015, said the value of UAE contracts in the past 12 months was $52 billion (£31.3 billion), with $40 billion being spent on buildings, roads, tunnels, infrastructure, education, healthcare and tourism projects.

"Most of this is in Dubai, which is the real estate hub for the region. Construction projects awarded in Dubai in 2013 were $20.6 billion, equal to 52% of all construction projects in the UAE," Mr James explained.

It means that construction projections in Dubai alone almost reached the total figure for developments in Saudi Arabia, which stood at $25 billion.

The future of Dubai property investment looks assured with Meed Insight highlighting that future construction projects across the GCC will exceed the $1 trillion mark, with the UAE accounting for almost 50% of this.

"The UAE also has the largest market for future projects over the next five years," Mr James said.

Many of the emirate's property developments will benefit from the large-scale infrastructural investments that are now taking place, with the tram and metro extensions being prime examples of this.

Meed Insight also stated that current and future construction projects in Dubai all have a sound commercial basis, echoing the long-term emphasis the emirate's authorities highlighted earlier this summer.

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