UAE Construction Industry Will the World Expo Restore the Magic - February 2014
Having foraged its way out of the crash resulting from the burst of the property bubble in 2009, the United Arab Emirates (UAE), a confederation of seven powerful Emirates in the Gulf region, has not only recovered the lost ground, but is all set to host the prestigious World Expo 2020 in one of its most attractive Emirate- Dubai. Already known as one of the most popular tourist and investment destinations in the world, for the UAE, the hosting of the world famous expo is likely to herald more projects and investments into the economy, which could skyrocket development to a new level across the Emirates in the next few years.
One of the most tracked construction industries in the world as also a pioneer in the adoption of state of art technologies and introduction of sustainable and green building and energy initiatives, the UAE is also one of the strongest economies in the Gulf Cooperation Council (GCC). It is not only backed by a strong hydrocarbon base controlling about one third’s of the world’s supply of hydrocarbons, but a leading destination for tourists and retailers owing to its large affluent population that comprise 80 percent expatriates that sustain demand and also attract investments from across the world into its construction sector.
Amid social unrest in the surrounding region, UAE has been perceived as a safe haven by tourists and investors alike helping the upward trend through 2012 and 2013. Diversification from its large hydrocarbon base to an economy that would soon thrive on the non-oil sector has been the aim of the UAE economy. Abu Dhabi the capital, which accounts for over 50 percent of the economy’s GDP, has injected vast amounts as a part of its Vision 2030 toward diversification into industry, tourism, and infrastructure and supplemented by the steady recovery in the other strong Emirate Dubai, which with some financial help from Abu Dhabi has managed to recover lost ground in property markets, though debt and inflation concerns continue to hold, requiring careful control of public expenditure and monitoring of prices by the Emirate in future.
UAE’s construction sector appears set to return to near-full capacity, with the government announcing it is reactivating a number of major development projects and stepping up spending on social infrastructure development. While the Abu Dhabi and Dubai governments led the revival in 2012, infrastructure and tourism proved to be the primary key to speed up the uptrend in 2013, especially the upgrades to airports, ports and roadways. A number of formerly stalled projects of 2010 raced towards completion in 2013 or continue to forge ahead on the fresh impetus provided by the World Expo 2020 to look forward to in the preparations in 2014.
The UAE Government is determined to help the economy achieve the leading spot in the GCC construction industry in close competion with economies such as Saudi Arabia and Qatar that have also undergone a steady growth through similar diversification and investment programs. Its rapidly growing, and fast urbanizing, young population constantly fuel demand across the real estate, infrastructure and utilities segments of the market. Being the region’s hub for tourism activities, the country also attracts large tourism revenues further fuelling demand in the tourism and leisure segments. Recently, in an effort to emulate the Qatar model of growth by organizing world renowned events, the UAE has won prestigious bid to host the World Expo 2020 in Dubai with the aim of attracting visitors and collaborators worldwide and boost domestic construction, tourism and industry in the bargain. The event is expected to attract close to 25 million additional visitors and the surrounding activity is expected to provide a fillip to its construction industry on a parallel to that gained by Qatar in hosting the World Cup 2022 event.
The construction industry of UAE witnessed construction contract awards to the tune of US$ 24,792 million in 2012, which is expected to increase to to US$ 50,591 by 2015, with bulk of the projects likely to be awarded over 2014 and 2015, in the more than doubling of the country’s zeal for construction with the winning bid to host the World Expo.
This Ventures Middle East study titled the UAE Construction Industry – Will The World Expo Restore the Magic, February 2014, based on its vast experience of the GCC construction market and its extensive projects database across the countries of the Middle East and North Africa (MENA) region, brings into focus the emergent trends in the UAE construction market in the light of the World Expo 2020 with a special chapter on the Expo and its implications for the UAE economy and construction.
The study also provides a strategic insight into the various political, economic, social, technical, legislative and environmental factors impacting this promising market. Besides an analysis into the market drivers and restraints culminating in a probability impact matrix of the occurrence of these drivers and restraints on the construction market, the study also provides key statistics of the market size and forecasts of the UAE construction contract awards across the various sectors of the UAE construction market namely, buildings, oil and gas, power and water, industrial and infrastructure for the periods 2012 to 2015.The study also provides a description of the sector-wise ongoing construction projects in addition to the proposed new projects thereby serving as a wealth of information for all key stakeholders of construction sector vying to enter this market.
One of the most tracked construction industries in the world as also a pioneer in the adoption of state of art technologies and introduction of sustainable and green building and energy initiatives, the UAE is also one of the strongest economies in the Gulf Cooperation Council (GCC). It is not only backed by a strong hydrocarbon base controlling about one third’s of the world’s supply of hydrocarbons, but a leading destination for tourists and retailers owing to its large affluent population that comprise 80 percent expatriates that sustain demand and also attract investments from across the world into its construction sector.
Amid social unrest in the surrounding region, UAE has been perceived as a safe haven by tourists and investors alike helping the upward trend through 2012 and 2013. Diversification from its large hydrocarbon base to an economy that would soon thrive on the non-oil sector has been the aim of the UAE economy. Abu Dhabi the capital, which accounts for over 50 percent of the economy’s GDP, has injected vast amounts as a part of its Vision 2030 toward diversification into industry, tourism, and infrastructure and supplemented by the steady recovery in the other strong Emirate Dubai, which with some financial help from Abu Dhabi has managed to recover lost ground in property markets, though debt and inflation concerns continue to hold, requiring careful control of public expenditure and monitoring of prices by the Emirate in future.
UAE’s construction sector appears set to return to near-full capacity, with the government announcing it is reactivating a number of major development projects and stepping up spending on social infrastructure development. While the Abu Dhabi and Dubai governments led the revival in 2012, infrastructure and tourism proved to be the primary key to speed up the uptrend in 2013, especially the upgrades to airports, ports and roadways. A number of formerly stalled projects of 2010 raced towards completion in 2013 or continue to forge ahead on the fresh impetus provided by the World Expo 2020 to look forward to in the preparations in 2014.
The UAE Government is determined to help the economy achieve the leading spot in the GCC construction industry in close competion with economies such as Saudi Arabia and Qatar that have also undergone a steady growth through similar diversification and investment programs. Its rapidly growing, and fast urbanizing, young population constantly fuel demand across the real estate, infrastructure and utilities segments of the market. Being the region’s hub for tourism activities, the country also attracts large tourism revenues further fuelling demand in the tourism and leisure segments. Recently, in an effort to emulate the Qatar model of growth by organizing world renowned events, the UAE has won prestigious bid to host the World Expo 2020 in Dubai with the aim of attracting visitors and collaborators worldwide and boost domestic construction, tourism and industry in the bargain. The event is expected to attract close to 25 million additional visitors and the surrounding activity is expected to provide a fillip to its construction industry on a parallel to that gained by Qatar in hosting the World Cup 2022 event.
The construction industry of UAE witnessed construction contract awards to the tune of US$ 24,792 million in 2012, which is expected to increase to to US$ 50,591 by 2015, with bulk of the projects likely to be awarded over 2014 and 2015, in the more than doubling of the country’s zeal for construction with the winning bid to host the World Expo.
This Ventures Middle East study titled the UAE Construction Industry – Will The World Expo Restore the Magic, February 2014, based on its vast experience of the GCC construction market and its extensive projects database across the countries of the Middle East and North Africa (MENA) region, brings into focus the emergent trends in the UAE construction market in the light of the World Expo 2020 with a special chapter on the Expo and its implications for the UAE economy and construction.
The study also provides a strategic insight into the various political, economic, social, technical, legislative and environmental factors impacting this promising market. Besides an analysis into the market drivers and restraints culminating in a probability impact matrix of the occurrence of these drivers and restraints on the construction market, the study also provides key statistics of the market size and forecasts of the UAE construction contract awards across the various sectors of the UAE construction market namely, buildings, oil and gas, power and water, industrial and infrastructure for the periods 2012 to 2015.The study also provides a description of the sector-wise ongoing construction projects in addition to the proposed new projects thereby serving as a wealth of information for all key stakeholders of construction sector vying to enter this market.
CHAPTER 1. STRATEGIC OVERVIEW OF UAE CONSTRUCTION INDUSTRY 2014
The UAE Construction Industry in 2014
Political
Economic
Social and Demographic
Technological
Legal and Regulatory
Environmental
Market Drivers and Restraints and Probability Impact Matrix
Market Growth Drivers
Market Growth Restraints
Construction Contract Awards for UAE Construction Industry, 2012-2015
CHAPTER 2. UAE OIL AND GAS SECTOR OVERVIEW
Downstream Sector
Market Size of UAE Oil and Gas Sector
Major Oil and Gas Projects in UAE
CHAPTER 3.THE UAE POWER AND WATER DESALINATION SECTOR OVERVIEW
Industry Structure
Market Size of UAE Power and Water Desalination Sector
Construction Contract Awards For Power and Water Sector in UAE (2012 -2015)
Major Power and Water Projects in UAE
CHAPTER 4. UAE BUILDING CONSTRUCTION SECTOR OVERVIEW
Market Size of UAE Building Sector
Construction Contract Awards For Building Sector in UAE (2012 -2015)
Major Building Projects in UAE
CHAPTER 5. UAE INDUSTRIAL SECTOR OVERVIEW
Market Size of UAE Industrial Sector
Major Industrial Projects in UAE
CHAPTER 6. UAE INFRASTRUCTURE SECTOR OVERVIEW
Market Size of UAE Infrastructure Sector
Construction Contract Awards For Infrastructure Sector in UAE (2012 -2015)
Major Infrastructure Projects in UAE
CHAPTER 7. WORLD EXPO 2020-‘CONNECTING MINDS, CREATING THE FUTURE’
CHAPTER 8. FUTURE OUTLOOK FOR THE UAE CONSTRUCTION INDUSTRY
Methodology
Code of Ethics
Ventures Onsite MENA Projects Database
The UAE Construction Industry in 2014
Political
Economic
Social and Demographic
Technological
Legal and Regulatory
Environmental
Market Drivers and Restraints and Probability Impact Matrix
Market Growth Drivers
Market Growth Restraints
Construction Contract Awards for UAE Construction Industry, 2012-2015
CHAPTER 2. UAE OIL AND GAS SECTOR OVERVIEW
Downstream Sector
Market Size of UAE Oil and Gas Sector
Major Oil and Gas Projects in UAE
CHAPTER 3.THE UAE POWER AND WATER DESALINATION SECTOR OVERVIEW
Industry Structure
Market Size of UAE Power and Water Desalination Sector
Construction Contract Awards For Power and Water Sector in UAE (2012 -2015)
Major Power and Water Projects in UAE
CHAPTER 4. UAE BUILDING CONSTRUCTION SECTOR OVERVIEW
Market Size of UAE Building Sector
Construction Contract Awards For Building Sector in UAE (2012 -2015)
Major Building Projects in UAE
CHAPTER 5. UAE INDUSTRIAL SECTOR OVERVIEW
Market Size of UAE Industrial Sector
Major Industrial Projects in UAE
CHAPTER 6. UAE INFRASTRUCTURE SECTOR OVERVIEW
Market Size of UAE Infrastructure Sector
Construction Contract Awards For Infrastructure Sector in UAE (2012 -2015)
Major Infrastructure Projects in UAE
CHAPTER 7. WORLD EXPO 2020-‘CONNECTING MINDS, CREATING THE FUTURE’
CHAPTER 8. FUTURE OUTLOOK FOR THE UAE CONSTRUCTION INDUSTRY
Methodology
Code of Ethics
Ventures Onsite MENA Projects Database
LIST OF FIGURES
Figure 1: PESTLE Analysis - UAE Construction industry
Figure 2: UAE Construction Industry Budget Totals by Sector (US$ Million), February 2014
Figure 3: UAE Total Construction Contractor Awards across Major Sectors (US$ Million), 2012-2015
Figure 4: Organization of the UAE Hydrocarbons Industry
Figure 5: UAE Oil and Gas Sector Construction Contractor Awards (US$ Million), 2012 -2015
Figure 6: Opportunities and Challenges in UAE Oil and Gas Sector 26
Figure 7: UAE Power and Water Structure
Figure 8: UAE Power and Water Sector Construction Contractor Awards (US$ Million), 2012 -2015
Figure 9: Opportunities and Challenges in UAE Power and Water Sector
Figure 10: UAE Building Sector Construction Contractor Awards (US$ Million), 2012 -2015
Figure 11: Opportunities and Challenges in UAE Buildings Sector
Figure 12: UAE Industrial Sector Construction Contractor Awards (US$ Million), 2012 -2015
Figure 13: Opportunities and Challenges in UAE Industrial Sector
Figure 14: UAE Infrastructure Sector Construction Contractor Awards (US$ Million), 2012 -2015
Figure 15: Opportunities and Challenges in UAE Infrastructure Sector
Figure 1: PESTLE Analysis - UAE Construction industry
Figure 2: UAE Construction Industry Budget Totals by Sector (US$ Million), February 2014
Figure 3: UAE Total Construction Contractor Awards across Major Sectors (US$ Million), 2012-2015
Figure 4: Organization of the UAE Hydrocarbons Industry
Figure 5: UAE Oil and Gas Sector Construction Contractor Awards (US$ Million), 2012 -2015
Figure 6: Opportunities and Challenges in UAE Oil and Gas Sector 26
Figure 7: UAE Power and Water Structure
Figure 8: UAE Power and Water Sector Construction Contractor Awards (US$ Million), 2012 -2015
Figure 9: Opportunities and Challenges in UAE Power and Water Sector
Figure 10: UAE Building Sector Construction Contractor Awards (US$ Million), 2012 -2015
Figure 11: Opportunities and Challenges in UAE Buildings Sector
Figure 12: UAE Industrial Sector Construction Contractor Awards (US$ Million), 2012 -2015
Figure 13: Opportunities and Challenges in UAE Industrial Sector
Figure 14: UAE Infrastructure Sector Construction Contractor Awards (US$ Million), 2012 -2015
Figure 15: Opportunities and Challenges in UAE Infrastructure Sector
LIST OF TABLES
Table 1: UAE Economic Indicators, (2013)
Table 2: Major Oil and Gas Projects in the UAE by Project Value (US$ Million), February 2014
Table 3: Major Power and Water Projects in the UAE by Project Value (US$ Million), February 2014
Table 4: Major Building Projects in the UAE by Project Value (US$ Million), February 2014
Table 5: Major Industrial Projects in the UAE by Project Value (US$ Million), February 2014
Table 6: Major Infrastructure Projects in the UAE by Project Value (US$ Million), February 2014
Table 1: UAE Economic Indicators, (2013)
Table 2: Major Oil and Gas Projects in the UAE by Project Value (US$ Million), February 2014
Table 3: Major Power and Water Projects in the UAE by Project Value (US$ Million), February 2014
Table 4: Major Building Projects in the UAE by Project Value (US$ Million), February 2014
Table 5: Major Industrial Projects in the UAE by Project Value (US$ Million), February 2014
Table 6: Major Infrastructure Projects in the UAE by Project Value (US$ Million), February 2014
