A new report stated that the United Arab Emirates is going to spend more than USD 300 billion on infrastructure development by 2030 due to continuous recovery of the construction sector after the global economic recession.
Prepared by a hospitality consultancy firm, the Middle East Hotel Development Cost Report said that UAE’s construction sector maintained its thrust of upturn in 2013. Dubai’s victory to host the upcoming Expo 2020 will set the country for infrastructure development investment of AED 32.39 billion.
This success will brought 25 million visitors to the country and one of the preparations being forecasted is the erection of more hotels especially in Dubai to accommodate the figure.
The government already announced that state owned land will be used for the construction of these hotels which are 3 to 4 star scale.
According to the report, UAE’s supply growth is the highest compared to the other regional markets having 14,300 rooms. At the same time, hotel room pipeline for the next four years is expected to boost total inventory by 57 per cent, according to the report.
Commercial businesses such as banks are also expected to increase their lending in order to support the expansion in hotel supply.
The report further said that construction activity in the UAE and the rest of the GCC is expected to boost building materials prices in the short term.