UAE construction sector back to boom times as property launches fuel big-ticket contracts

UAE construction sector back to boom times as property launches fuel big-ticket contracts

Dubai: For the UAE economy, it’s the best-case scenario. As developers shift multiple gears to speed up on their offplan project launches, the UAE’s construction sector is gearing up to build all the new homes that will enter the property market in the next 3 to 5 years. Not surprising then that of the Top 3 project awards in the first five months, two went to high-on-profile offplan projects – the Al Habtoor Tower on Sheikh Zayed Road valued at Dh1 billion and the ‘Serenia Living’ on Palm Jumeirah, with the contract going for Dh817 million. At No. 1 was the Nouf Independent Water Plant, with the contract size estimated at Dh2 billion, according to data from BRC Network. (The rankings only cover project awards in the non-oil sector.) Clearly, the offplan boom in Dubai and Abu Dhabi is fitting right into the construction sector dynamic. “Despite completing some major projects, the UAE construction sector was passing through a difficult phase,” said the CEO at one of the bigger contracting firms. “The UAE construction market took time to process the liquidation of Arabtec (the biggest name in the local industry until that mishap), there were other companies facing cashflow issues