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Emirates NBD says Dubai construction growth dipped in August

The construction sector index within Emirates NBD's Dubai Economy Tracker indicated a slowdown in the sector's growth during August, despite output hikes compared to July

Growth in Dubai's construction market slowed in August compared to the two months prior, according to Emirates NBD [representational image].
Growth in Dubai's construction market slowed in August compared to the two months prior, according to Emirates NBD [representational image].

The growth rate of Dubai’s construction sector slowed in August compared to the two months prior, latest research from Emirates NBD has revealed.

According to its Dubai Economy Tracker August report, Emirates NBD reported its construction sector index declined to 55.3, signalling a slowdown in growth compared to June and July.

While output continued to rise at a sharp rate, with nearly 40% of surveyed firms reporting higher output than in July, new work growth slowed in August, declining by more than three points to 57.9.

READ: UAE says investor trust unshaken by real estate scams

However, pricing pressures for the construction sector eased last month according to the research, with both input costs and selling prices broadly unchanged.

Business optimism was also positive and was much higher than in July, with more than 80% of surveyed firms stating they expected their output to be higher in a year’s time.

The figures came as part of the wider Emirates NBD Dubai Economy Tracker, an economic indicator compiled from monthly surveys of companies in Dubai.

According to Emirates NBD, the survey is based upon “fact, not opinion”, utilising the same methodology as all of IHS Markit’s Purchasing Managers' Index (PMI) surveys to facilitate international comparisons and between economies in the Middle East and Northern Africa region.

READ: Dubai DED: Investor confidence remains high in the emirate

The figures from Emirates NBD came three months after various leaders in the UAE’s construction sector applauded the the country's new 10-year visa system aimed at attracting international investors and skilled workers in what could be a major boost to the UAE’s economy.

They included chairman of Azizi Developments, Mirwais Azizi who said the move would “encourage even more people to invest in buying a house or an apartment”, boosting both investor and buyer’s confidence.

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Latest Issue

Construction Week - Issue 747
Aug 03, 2019