Built assets to contribute $351bn to UAE economy
Revenue from infrastructure, buildings, and other built assets will account for 50% of the UAE’s total GDP in 2016
Investment in buildings and infrastructure is playing a crucial role in supporting the UAE’s economic diversification agenda.
It is estimated that in 2016, built assets will deliver $351bn (AED1.29tn) to the UAE economy.
Built assets are making an increasing contribution to the UAE economy, according to the ‘2016 Global Built Asset Performance Index’ released by Arcadis, a global design and consultancy firm for natural and built assets.
This represents a 16% increase over the last two years, and will see the total contribution from built assets account for 50% of the UAE’s total GDP in 2016.
This growth in percentage is partly due to the impact of a lower oil price, which has seen the percentage of revenue that comes from exporting natural resources decrease, but also reflects the tremendous progress that the UAE has made in recent years in diversifying into new industry sectors.
Derek Sprackett, head of business advisory, Arcadis Middle East said: “Built assets, including transport links, high quality residential and commercial property, and productive industrial centres all make a significant contribution to a country’s economic performance.
“In recent years many countries across the Middle East have invested heavily and strategically in real estate and infrastructure, as part of their national visions and efforts to diversify their economies.”
The UAE and Qatar lead the world when it comes to securing a financial return from their built assets when this is assessed on a per-capita basis.
The Arcadis research also examined how the economic return from built assets would evolve over the next decade.
For the UAE, the study indicated that revenue contribution that comes from built assets would increase by 33% in this period, reaching a total of $468bn (AED1.78tn) by 2026.