Construction projects are estimated to reach a total of $315bn in the United Arab Emirates (UAE) this year, according to EC Harris’ 2014 International Focus on the UAE report.
Projects worth $212bn were under construction when the report surveyed the market in May. The construction industry is expected to reach full capacity as social infrastructure spending increases and megaprojects presently being planned are brought forward.
The report estimates the UAE’s GDP growth, growth across industry sectors, market conditions and construction tender price levels.
It characterises Abu Dhabi as a steady construction market with spending in the sector expected to increase towards the end of the year and into next. Dubai also has a strong and sustainable real estate market. Both cities are growth drivers.
Christopher Seymour, partner and head of property and social infrastructure at EC Harris, said: "The UAE has experienced a shifting momentum of activity over the past decade with 2009 onwards being difficult years for the market. The dynamic has changed from a period of negative to low inflation over the last few years to a period of moderate increase.
"The market is finally showing real signs of recovery and prospective growth suggesting that the construction market will remain strong this year."
UAE’s public construction spend to top $46bn this year.
Download the full report here.