Report says UAE construction 'still growing'

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According to a research report entitled ‘UAE Construction Industry Outlook to 2012’, the sector continues to witness massive investments from both public and private enterprises to exploit its untapped potential.

The report, from international research firm RNCOS, also shows that the country has emerged as the largest construction market in the GCC region. Outpacing Saudi Arabia, it rose to the top spot in terms of infrastructure investment.

At the end of 2008, the UAE accounted for around 20.3% of the total construction industry in the region, followed by Saudi Arabia, Algeria and Egypt. Moreover, the construction industry managed to record double-digit growth despite the adverse economic conditions.

The report has also found that the construction industry contribution to the country’s GDP has risen substantially over the past couple of years. With the government’s commitment to boost infrastructure and diversify its economy from oil-driven to other industrial sectors, the construction sector is expected to attract huge sum of investments.

As per RNCOS’s estimation, the UAE construction industry is expected to grow at a CAGR of over 18% during 2009-2013.