DLA Piper: Brexit will not damage UAE construction
The United Kingdom’s decision to leave the European Union will not impact the UAE’s construction sector in the short term, according to DLA Piper’s Daniel Xu
The Brexit will have no immediate impact on UAE construction, according to Daniel Xu, senior legal consultant at DLA Piper.
Xu told Construction Week that the Emirates’ construction sector is sufficiently diverse to weather any short-term effects that result from the United Kingdom’s decision to leave the European Union (EU).
The DLA Piper expert also argued that the UAE will have time to guard itself against potentially damaging long-term consequences of the Brexit.
“In the short term, nothing has changed and we think it will be business as usual for the UAE construction industry,” said Xu.
“Firstly, key players operating within the UAE construction industry that are based or headquartered in the UK are typically well established companies here with strong, proven track records. Secondly, there is sufficient diversity within the UAE construction industry in terms of key players, not just from the UK but also from the wider Middle East region and the Far East.”
Xu added that the two-year period, during which the UK will transition away from its current status as an EU member state, will allow the UAE’s construction sector to prepare for the eventual split.
“It is important to remember that we are now only at the transition phase of the Brexit,” he explained. “EU law will continue to apply in the UK throughout the exit negotiation process. Therefore, all existing EU laws and regulations will remain in full force and effect until the terms of the UK’s exit agreement have been concluded.
“Where there are any adjustments or preparations to be made in the future, there is sufficient time for companies in the UAE construction sector to react,” Xu concluded.