BMI says the UAE's infrastructure value will grow by 6.8% in 2009.
British consultancy Business Monitor International (BMI) has issued a ringing endorsement to the UAE’s infrastructure industry, significantly increasing its forecast in terms of growth for 2009.
In its third-quarter report for this year, BMI cited the ability of projects to rebound after delays and cancellations, with especial reference to Dubai airport’s Concourse 3 finding a new contractor less than a month after Al Habtoor Leighton pulled out.
The UK firm also pointed towards Dewa’s multi-billion-dollar capex programme and Abu Dhabi’s determination to push ahead with its transport master plan.
“The investments Abu Dhabi is making in infrastructure, in transport especially, and also ongoing infrastructure investments in Dubai, such as the metro, have not only survived the downturn, but have attracted the attention of international majors, which are seeking a safe haven in the UAE's (and certainly the wider Gulf region's) infrastructure markets,” said the BMI report.
“Such investments we believe will grease the wheels of the industry and propel it towards growth in 2009,” the report added.
BMI also indicated that the lower prices of raw materials would also boost the industry, and that most of the infrastructure projects in the UAE were overwhelmingly government-backed.
From its previous prediction of 0.9%, BMI now forecasts industry value real growth for 2009 at 6.8%.
“As such, we forecast that industry value will reach AED86.7bn (US$23.6bn). A similar level of growth is expected for 2010, with value climbing up to AED95.9bn (US$26.1bn),” the report concluded.
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