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, a total of 78 awards make up three-quarters of all residential building projects awarded in the United Arab Emirates 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 airspace and airport development program which will enhance the volume at Dubai International from sixty million to ninety million travelers each year in 2018. In the same way in Abu Dhabi, the 10.8 billion AED Midfield Terminal Building project is set to be the world’s biggest baggage system remains on plan 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 worth of the country’s building construction segment at almost 60 percent of the overall projects in the construction industry, then infrastructure, power and water, and oil and gas, with overall construction projects awarded in the UAE totaling $38 billion in the year of 2013. The sum for 2014 is approximated to accomplish $46 billion in awarded projects in the country.