Contractor: Faster payment terms signal recovery
Shaikhani Contracting is confident that construction is improving
Faster payments to contractors from developers are a clear sign that the UAE construction sector is witnessing a turn around, according to executives at Shaikani Contracting.
The company’s managing director, Rizwan Shaikhani, says that the improved contractor payment scenario is best witnessed in Dubai, where more and more developers have started to pay contractors outstanding dues.
Positive that this development marks the beginnings of an upturn, the contractor has announced plans to roll out a strategic region-wide development plan looking at growth and expansion across the UAE specifically.
“This welcome development regarding the faster interval of payment for dues owed to contractors bodes well for our plans to grow our operations in the UAE, and we are very excited to witness the resumption of construction activities,” said Shaikhani.
“Amidst the turbulent transition from unrealistic market prices to healthier, more realistic levels, we have succeeded in weathering the challenges and remain steadfast in our commitment. We are positive that this year will mark a significant milestone for our operations.”
According to recent market projections, as many as 26,650 apartments and villas will be handed over in Dubai this year as the region enters a recovery phase.
This follows a sharp decline in 2009, with some US$ 500 billion-worth of projects being cancelled or shelved and a substantial percentage of construction staff being made redundant following the real estate slump that started in 2008.
Demonstrating its confidence in the construction industry, Shaikhani Contracting has announced that it is currently planning to hire more engineers, technical and non-technical staff.