São Paulo – Over 1,200 residential and office building projects in Abu Dhabi, United Arab Emirates are worth some USD 62 billion, as per a survey made public this Wednesday (18) by BNC Network, which keeps track of the Middle East and North Africa construction industry.
According to the company, roughly 700 projects, worth USD 16 billion, are actually underway; 60 projects are being tendered; and another 130 are in their early stages.
Abu Dhabi is “a major economic power backed up by large hydrocarbon reserves that put the emirate’s economy on solid ground,” a BNC Network press release quoted its CEO da Avin Gidwani as saying. “However, low global oil prices in the period of 2014-2017 compelled oil dependent economies to undertake conservative growth strategies, resulting in a slowdown in construction activities,” he went on.
Gidwani believes, however, that this scenario will not be long-lived. He said construction in Abu Dhabi is expected to pick up in years to come, “if the current level of crude oil prices holds. As it stands, major Abu Dhabi developers have already started announcing new projects, especially in the affordable home segment,” he said.
According to BNC, office and residential buildings account for 76% of the 1,600-plus construction projects in Abu Dhabi, but only 41% of their total value. Other projects, like hotels, hospitals and malls, answer to the remaining 59%.
Across the UAE, residential and office projects exceed 8,300, to the tune of USD 237 billion, with those underway or being tendered amount to USD 105 billion.
“The UAE’s construction project market is currently being driven by the anticipated footfall demand for the World Expo 2020 – that necessitated the upgradation and expansion of infrastructure as well as the addition of new housing and hotel projects – to accommodate a large number of visitors,” he remarked. Expo 2020 will take place in Dubai. “Over the course of the next two years most of the currently ongoing construction work will be completed,” he said.
Translated by Gabriel Pomerancblum