In the past years, the GCC has experienced a record boom in the infrastructure sector and construction industry, with two-thirds of the projects being undertaken in the UAE. According to a recent Deloitte report ´Deloitte GCC Powers of Construction 2015´, the dwarfing infrastructure project of the region is of course DWC: Al Maktoum International Airport expansion, currently budgeted at US$ 32 billion. The development, anticipated to be the biggest airport in the world, accommodating more than 200 million passengers a year, is being built in two phases, with Phase-1 calling for two main terminals and three runways. The entire development will cover 56 sq km. This is followed by a massive industrial project in Abu Dhabi for Tacaamol - Al-Gharbia Chemicals Industrial City, planned at $20 billion. Being led by Abu Dhabi Investment Council (ADIC), the project comprises 12 plants that will be located in the new Mina Khalifa Industrial Zone.
The first phase of the project is expected to have an output of more than 8 million tonne per year.
The report also highlights that the chemical industrial city will help diversify the predominantly oil-based economy by setting up complementary industries and associated services. The UAE projects would not be complete if there were no plans for large scale, mixed-use developments, such as Dubai Holding/Emaar Properties - MBR City: Dubai Creek Harbour planned at US$ 17.7 billion. Located at the head of the Dubai Creek, the development of the Ras Al Khor area into a business hub is being planned. Covering 3,450 hectare, the project will comprise a mixed-use development, an entrepreneurial zone, residences, educational facilities, cultural amenities and leisure, while the centerpiece will be The Dubai Twin towers, which will be the tallest twin towers in the world. There are several other sectors with several billions being planned on capital projects, with the top sector for 2015 being mixed-use and residential projects amounting to US$ 24 billion.
Undoubtedly, the UAE construction market is estimated to grow by 9.3 per cent in 2015 from 5.5 per cent in 2014. While much is being spoken about lowering oil prices globally, good news is that UAE has been diversifying its GDP revenue away from the oil sector. Additionally, the upcoming Expo 2020 has created positive waves for the construction sector.
In this background, an expo like The Big 5 not only acts as a catalyst to bring the industry together but opens up a whole new gamut of investment opportunities. And, this edition of CONSTRUCTION WORLD covers expert insights on the market and expectations from the event, new launches, and an overview of the Dubai construction market and much more.. The overall look of Dubai´s economy is positive with the GDP growth forecasts close to 4 per cent. And, we look forward to a good number of projects take off in times to come.
Happy read to all!!!