69% of all civil projects in UAE still active (UAE)
Thursday 12 November 2009
Latest Proleads study reveals UAE civil building construction market has 1,845 projects ongoing worth US $657 billion.
The latest research undertaken by Dubai-based research and analysis think tank Proleads, has identified 1,845 projects worth a combined US $657 billion (approx. 400 billion) are still active (not cancelled, completed or on-hold).
The full details are contained within Proleads latest study report which was published today, providing an overview of the civil building construction industry within the United Arab Emirates. The study splits the market into four sectors; Commercial and Retail, Education and Healthcare, Leisure and Entertainment and finally the Residential sector.
“Throughout our research in each sector we found a number of common issues, said Emil Rademeyer, Director, Proleads. “Over two thirds of projects are still active, new projects starting have slowed and projects completing are accelerating and cash flow is declining.
The largest of these sectors by number of projects as well as by budget is the commercial and civil sector. The total market consists of 829 projects valued at US $412 billion.
The residential sector is made up of a combined value of US $312 billion. The rate that projects are being cancelled has accelerated over the course of the year although the largest proportion of projects, are still in progress.
Projects classified within the leisure and entertainment sector amount to over US $233 billion spread across 445 projects, while education and healthcare has almost 700 projects worth US $57 billion.
“So although the overall situation looks stable, unless investment for new projects is found the size of the real estate industry will shrink and its overall shelf-life will be reduced,” added Rademeyer.
The UAE study is complemented by a comparative report on the state of civil projects in Abu Dhabi and Dubai. In terms of projects currently under construction, the report finds Dubai has the larger share of the market - indicative of Abu Dhabi projects having started later than Dubai.
“This view is supported further when looking at the scheduled completion dates with the bulk of the Dubai projects coming to a close during 2010 and 2011 and Abu Dhabi in 2012 and 2013,” said Rademeyer.