Construction Sector Set to Recover in 2010: Study

The UAE construction industry, which has put projects worth more than $300 billion on hold, is poised for a possible recovery in 2010, said Dubai-based research company Proleads Global. In its study of the impact of the global crisis on the UAE construction sector, Proleads said that despite the marked downtrend that began in mid-2008 when new projects were announced, the country remains one of the most active construction markets in the world. More than 750 projects are actively under construction, and 450 are recently completed. Proleads claimed that the construction industry is showing signs of a recovery by next year, even if more than 400 projects worth more than $300 billion have either been placed on hold or cancelled. The study included 1,900 projects estimated to be more than $1trillion. “Projects are always put on hold even during boom times but it is the rate at which it occurs that enables us to forecast when we might see an upswing. From our cash-flow projections for the industry, we see the UAE construction market beginning to stabilise at current levels and showing some signs of recovery during 2010,” said Emil Rademeyer, Director of Proleads Global.

Proleads said there are “multiple” projects scheduled for completion up to 2011, though it did not provide specific figures. Dubai has been badly hurt among all emirates as construction abruptly slowed as a lack of demand led to a nosedive in house prices and rentals. Some property companies, however, have continued projects that have already been started. In one of Dubai’s most high-profile projects, Emaar Properties said it is nearing the installation of the last piece of glass cadding that will complete the exterior of Burj Dubai, the world’s tallest building, which is scheduled to open by the end of 2009. The Arabian Aluminum Company, a unit of the Al Ghurair Construction Industries LLC, is entering the final phase of cladding with installlation of the six-metre-long glass aluminum and steel panel for the Burj Dubai tower.