Supply chain disruptions to “deepen” for UAE construction

GlobalData said remote working could impact administrative procedures that are essential for site works to progress

The UAE construction sector is set to be "reshaped" according to GlobalData
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The UAE construction sector is set to be "reshaped" according to GlobalData

Data and analytics company, GlobalData, has predicted that the UAE construction sector is set to be “reshaped” as tightening measures resulting from the COVID-19 outbreak begin to impact the region.

GlobalData revealed that the the UAE’s construction sector has been indirectly affected by some of the social distancing measures that have been implemented to ‘flatten the curve’ of the spread of the coronavirus.

The firm’s deputy editor, Colin Foreman, believes the implementation of remote working will impact administrative procedures for construction sites.

“In the construction sector, remote working, which some private sector employers in the UAE have voluntarily offered, could impact administrative procedures that are essential for site works to progress, such as sign-offs and schedule management,” said Foreman.

“Meanwhile, even though cargo travel currently faces fewer restrictions than passenger flights, supply chain disruptions are likely to deepen in the weeks ahead.”

In contrast, Foreman believes that the UAE Central Bank’s $27bn (AED100bn) stimulus package for local banks and small- and medium-sized enterprises (SMEs) is expected to benefit design, contracting and fit-out industries.

“It is not yet clear when the spread of COVID-19 will peak in the Middle East,” Foreman added. “This will largely determine the guidelines for social movement that health authorities implement over the next few weeks. For now, however, it is construction as usual in the UAE.”

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