UAE contract awards hit $22bn, says report
A Faithful + Gould report revealed that construction contract awards across the UAE reached $22bn compared to last year
A Faithful + Gould report revealed that construction contract awards across the UAE reached $22bn, which marked an improvement compared to the same period last year.The Faithful + Gould Construction Intelligence Report – UAE Update, written by David Clifton, regional development director, said that the full-year contract awards are expected to total $45bn.According to the report, the year 2016 yielded a total of $43bn awards and was the most difﬁcult year since 2012."When reviewing this year’s awards, it is evident that mega projects are a rarity, making up a small percentage of the values compared to previous years. The stand out schemes in real estate that moved to site are Nakheel’s Deira Mall ($1.14bn) and ICD’s One Zabeel (around $1bn)," the report said.
Tender price pressure is still being exerted in the UAE even though the market for awards has improved compared to 2016, the report said.
The report further stated: "We’ve already seen this year that major international players have withdrawn from the market and others have been caught out ﬁnancially. There is continued evidence of unsustainable low tender pricing, which will no doubt require some future management through the supply chain."