Industrial Construction in the UAE to 2019: Market Forecast : ken Research REQUEST FOR SAMPLE REPORT Request For sample Report × Report Title Name Email Designation Phone No Comapny Name Comapny URL Country -- Please Select Your Country -- Afganistan Africa Albania Algeria Andorra Angola Anguilla Antigua and Barbuda Argentina Armenia Aruba Asia Australasia Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia Bonaire Bosnia Herzegovina Botswana Brazil BRICS British Virgin Islands Brunei Darussalam Bulgaria Burkina Faso Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Central and South America Chad Chile China Colombia Comoros Congo Costa Rica Cote d'Ivoire Croatia Cuba Curacao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Europe European Union Falkland Islands Faroe Islands Fiji Finland France French Guiana French Polynesia Gabon Gambia Georgia Germany Ghana Gibraltar Global Great Britain Greece Greenland Grenada Guadeloupe Guam Guatemala Guerney & Alderney Guinea Guinea-Bissau Guyana Haiti Honduras Hong Kong Hungary Iceland India Indonesia Iran Iraq Ireland Isle of Man Israel Italy Ivory Coast Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Kosovo Kuwait Kyrgyzstan Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macau Macedonia Madagascar Malawi Malaysia Maldives Mali Malta Man (Island of) Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Micronesia Middle East Minnesota Moldova Monaco Mongolia Monserrat Montenegro Morocco Morroco Mozambique Myanmar Namibia Nepal Netherlands New Caledonia New Zealand Nicaragua Niger Nigeria Niue North America North Korea Norway Oman Pakistan Palau Palestine Panama Papua New Guinea Paraguay Peru Philippines Poland Portugal Puerto Rico Qatar Reunion Romania Russia Rwanda Saint Helena Saint Lucia Saint Martin Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa Samoa (American) San Marino Sao Tome and Principe Saudi Arabia Scandinavia Senegal Serbia Seychelles Sierra Leone Singapore Sint Maarten Slovakia Slovenia Solomon (Islands) Somalia South Africa South Korea South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Islands Swaziland Sweden Switzerland Syria Taiwan Tajikistan Tanzania Thailand Timor Leste Togo Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Uganda Ukraine United Arab Emirates United Kingdom United States Uruguay Uzbekistan Vanuatu Vatican City Venezuela Vietnam Virgin Islands Western Sahara Yemen Zambia Zimbabwe Requirement Submit Looking at the Middle East, UAE can be seen as one of the fastest growing economy, with its construction industry ranked third among the construction industries of the Middle East countries. The construction industry is third largest economic activity after oil and trade, in the UAE, including approximately 6000 companies with most of the construction activities taking place in Abu Dhabi and Dubai. The construction sector can be broadly classified into five categories: Commercial, Industrial, Infrastructure, Institutional and Residential. One of the major driver i.e. Industrial constructionscan be further analysed, focussing on construction activities segmented into: new construction, repair and maintenance, refurbishment and demolition. Historical (2008-2012) and forecast (2013-2017) valuations of the construction industry in the UAE using construction output and value-add methods, implies that the UAE construction industry increased in value at a CAGR of 0.49% during the review period.The reason of the growth can be attributed, among other construction sectors, to the growth in the industrial construction industry. SWOT Analysis of the Construction Sector in UAE STRENGTHS · Oil-rich country · Political stability · International business and investment from overseas · Growing non-oil sector · Tax free environment · Attractive salaries WEAKNESSES · Inflation growth · Currency value instability (AED peg to USD) · Oil production spending increase, government saving decrease · Shortage of skilled manpower · Image of the ‘Disney World in the desert’ · Disparities between Emirates OPPORTUNITIES · The rise in oil income · Progress toward diversification into service sectors such as high-tech, logistics, ports, tourism, financial services, health, education and media · Global increase in oil consumption and oil price rise · Private sector-led economic expansion promotion THREATS · Restart of Iran’s nuclear weapons programme · Conflicts in the GCC region and worsening security · Downside risks from the global economy · Worsening international financial market conditions · Competition from other emergent markets in the Middle East and worldwide From the analysis above, it is clear that the construction sector in UAE has strength and weaknesses as well. The potential capacity can be harnessed only if the opportunities are utilized in a profitable manner. The UAE’s industrial construction industry is expected to exhibit increased growth rate and continue the boom in coming future, on account of expansion of the overall construction sector through increasing investment in infrastructure, residential, commercial and energy projects. The industry’s output value in real terms is forecast to rise at a CAGR of 6.52% in the next five years period; up from 3.55% during the period 2010-2014. The promising future of the construction industry can be seen by observing its past trend. After facing the slowdown in 2008, on account of global financial crisis and with the recovery of GCC economies, UAE’s construction sector has exhibited sustainable growth over the years, with its value following an upward trend from 2009 through to 2011 and forecasted to be continuing with the same pattern in future as per the Dubai Chamber of Commerce and Industry. The industry is also contributing increasingly in the nation’s GDP and that this trend is also forecast to be continued in coming years reaching 11.5% of GDP in 2021. The reasons for this growth can be attributed to various macroeconomic factors conducive to the construction sector. Key Macroeconomic Trends Driving Growth in UAE Industrial Construction Sector UAE is one of the most diversified economies in the Gulf region. The non-oil sector contributes 14% of GDP in 2014. Govt. is focusing increasingly on manufacturing, services and construction, to leverage the economy by increasing the share of these sectors in the economy and hence reducing the effect of adverse oil and gas market conditions on the nation’s GDP. Govt. targets to increase the share of non-oil sector in the GDP to 80% by 2030. UAE ECONOMY SNAPSHOT 2011 2012 2013 2014 2015 Population (million) 8.5 8.8 9.0 9.3 9.6 GDP per capita (USD) 40,072 41,685 41,980 42,067 – GDP (USD bn) 341 365 379 391 – Economic Growth (GDP, annual variation in %) 5.2 6.9 4.3 4.6 3.1 Some macroeconomic factors driving growth in UAE Industrial Construction industry include: The population of UAE which is increasing and is also anticipated to increase at a higher rate in future, necessitating the need of power, water supply, health concerns, increased food production through fertilizers etc. This ultimately necessitates industrial constructions of power plants, chemical and pharmaceutical plants, water storage etc. expanding the industrial construction sector. As can be observed from the increasing GDP, strong economic performance of UAE along with its strategic location has always attracted investors. Various investor friendly govt. policies, such as permitting non-UAE national freeholds and leaseholds are attracting Foreign Direct Investment (FDI) in construction sector. Due to Dubai hosting the World Expo, 2020, Govt. is investing in related infrastructure and facilities, as well as, investing for developing country into a tourist destination ahead of World Expo, is driving up the growth of construction sector. The UAE construction industry’s growth will be driven by the government’s plan to increase the share of renewable energy in terms of total energy consumption, encouraging investment in renewable energy infrastructure. The government aims to generate 7% of the country’s total electricity needs through renewable sources by 2020. To know more on coverage, click on the link https://www.kenresearch.com/manufacturing-and-construction/infrastructure/industrial/29570-97.html Related Reports: Commercial Construction in the UAE to 2019: Market Forecast Worldwide Construction Industry – Opportunities in Developing Regions Contact: Ken Research Ankur Gupta, Head Marketing & Communications query@kenresearch.com www.kenresearch.com +91-124-4230204 Tags: Commercial Construction Market Size UAE, Construction Industry UAE Trends, UAE Industrial Construction Market analysis, UAE Industrial Construction Market Forecast, UAE Industrial Construction Market future, UAE Industrial Construction Market research, UAE Industrial Construction Market Research Report, UAE Industrial Construction Market share, UAE Industrial Construction Market size, UAE Industrial Construction Market trends, UAE Real Estate Market Research Report