UAE’s construction sector is on fast-track growth in 2023

UAE’s construction sector is on fast-track growth in 2023

Looking at absolute numbers, the UAE’s project pipeline amounts to $29 billion over the next two-year period and $199 billion over the next five years. The numbers are sizeable compared to Saudi Arabia’s $521 billion and Qatar’s $53 billion over the same period. While lower energy prices coupled with high interest rates could translate into lower public borrowing, past commercial credit utilisation trends suggest sustained wholesale credit growth, which could grow by a 5-7 per cent CAGR over five years, assuming 50-70 per cent utilisation. Or 2-4 per cent on a 20-40 per cent utilisation rate.

The 1,200 kilometre network will extend across the UAE from the Saudi border to Oman. With a cost of Dh40 billion), the project benefits will be visible over the longer term. Annually, the project is expected to serve 16 million passengers and 50 million tonnes of freight.

The India–Middle East–Europe trade corridor announcement could further see participating nations leverage the rail project.

The trial operations at the much-awaited facility have started. Once open, the terminal buildings are expected to accommodate up to 11,000 passengers and hour, or around 45 million passengers annually. The UAE’s latest tourism numbers suggest a massive uptick in foreign visitor arrivals.

At 742,000 square