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The Big 5 preview update 2016

by Yamurai Zendera on Nov 7, 2016

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Dubai’s construction industry knows no standstill. According to BNC’s “Dubai Construction Market 2016” report commissioned by construction exhibition The Big 5, over 3,700 projects are currently ongoing across the emirate. Their total value is estimated around $400bn.

The Dubai construction market is on an upward trajectory, the report shows. Although approximately 21% of them are on hold, a large number of projects are in advanced stages of construction, with an estimated value of over $100bn. Noteworthy high-value projects under construction include the Sobha Hartland Development ($2.1bn), the Royal Atlantis Resort and Residences – Palm Jumeirah ($1.4bn) and the Innovation Hub PT-163 – Dubai Internet City ($1.2bn).

Commercial and residential units, education, healthcare and hospitality buildings, leisure and recreation facilities, religious buildings, retail facilities and mixed-use urban developments make up approximately 77% of all project values in Dubai, amounting to almost $320bn.

“A growing population, the tourism sector, strategic government investments like the Dubai Plan 2021 and the Dubai Expo 2020 are fuelling the local construction industry,” said Josine Heijmans, event director of The Big 5.

Dubai’s population is approximately 2.46 million people today, and is expected to reach 3.4 million in 2020. The emirate is also becoming a major destination hub for international travellers. Last year, it welcomed 14.2 million overnight visitors and is on track to reach 20 million by 2020.

“This impressive increase is likely to put a strain on the city’s infrastructure, creating a need to expand its capacity,” said Heijmans.

Indeed, state planning is strongly supporting the construction market’s growth. The Government of Dubai has outlined an ambitious 2021 Plan, which includes the development of Dubai as a “smart and sustainable city”. The emirate is also getting ready to welcome up to 25 million visitors to the first World Expo in the Middle East, 70% of which are expected to come from overseas. Total spend on infrastructure projects related to Dubai Expo 2020 might reach up to $18bn, with estimated development costs of the Dubai South Area between $8.1bn and $8.7bn.