The rate of construction in the UAE is set to rapidly accelerate in 2014, with more than $15 billion in major projects granted for the first half of the year and with entirety construction awards approximated to soar to $46 billion over the year.
In the first half of the year, there were more than 50 contracts, worth a total of more than $5.4 billion, for recently revealed or recaptured residential projects and a further $3.8 billion for mixed-use projects, all with strong residential elements.
According to a report, there is an apparent recovery of interest in residential projects is behind the best half year for contract awards in the buildings and transport sectors since 2008. Meanwhile, civil construction projects represented 75% of all awards in the UAE in the first half of the year and with well over $20 billion of awards. UAE was the GCC’s biggest market across all divisions, once more, a place it has not held since 2008.
The intensity of the residential projects’ division is basically due to the resurgence of the area in Dubai, where 44 major contracts totaling $4.8 billion were given in the first six months of 2014. Abu Dhabi, with six projects worth a total of $500 million, was the second highest level of residential division awards evaluated by assessment. Smaller contracts worth less than $30 million are also covered. In Dubai, total of 78 awards make up three quarters of all residential building projects awarded in the UAE in the first half of 2014. Around $2 billion in contracts for roads were given, mainly in Abu Dhabi, with awards for Dubai’s creek expansion and Terminal 4 at Jebel Ali Port getting the total for about $2.5 billion.
In 2014, Dubai Airports revealed a $7.8 billion airport and airspace development program which will boost capacity at Dubai International from 60 million to 90 million travelers each year by 2018. In the same way in Abu Dhabi, the Dh10.8 billion Midfield Terminal Building project is set to be the world’s largest baggage system remains on schedule to be launched by July 2017.
These new projects merged with many beforehand stalled projects now forging ahead, resume strengthening the 2013 upswing into 2014. The report sets the value of the country’s building construction sector at almost 60% of the total projects in the construction industry, then infrastructure, oil and gas, and power and water, with total construction projects awarded in the UAE totaling $38 billion in 2013. The sum for 2014 is approximated to accomplish $46 billion in awarded projects in the country.