Insightful analysis of the operating environment and expected growth trends of the industrial construction industry in the country. Detailed historic and forecast market value data for the industrial construction industry, as well as a breakdown of the data by construction activity i.e. new construction, repair and maintenance, refurbishment and demolition. It provides historical and forecast valuations of the industry using the construction output and value-add methods for the period 2010 through to 2019.
Population increase has always a vital role in the expansion and growth of UAE Industrial Construction Industry through increasing demand of improved living quality conditions. With increase in population has increased the demand for manufactured consumer goods, electricity and power to general public as well as manufacturing units, better health services, sanitation, increase in food production and more. which has necessitated the construction of power plants, manufacturing units, chemical and pharmaceutical plants, fertilizer and pesticides production plants etc. This has consequently led to the expansion of the UAE Industrial Construction Industry.
With the target of government to diversify the share of non-oil sector in the total GDP of the nation the future of Industrial construction market in the UAE showcase investment opportunities. It includes especially the government’s plan to increase the share of renewable energy in terms of total energy consumption, encouraging investment in renewable energy infrastructure. The government aims to generate 7% of the country’s total electricity needs through renewable sources by 2020. Also, under the UAE Vision 2021 National Agenda, government is planning to amplify contribution of construction and manufacturing sector to GDP by 2020. This will create opportunities for the construction industry over the forecast period. These construction expansionary policies will reduce the influence of oil and gas adverse market shocks on the nation’s economy.
Global Construction Industry
The global construction industry faced slowdown during 2007-09 on account of the global financial crisis; however, over the years the situation has improved. The construction industry is today one of the fastest growing industries of the world. It is expected to remain the most dynamic sector in the world for next fifteen years. The growth of this sector is very crucial for the development of societies and for the nation henceforth. Countries like China, US and India is expected to lead the global growth by accounting for more than half of the growth of the sector.
Some of the prominent trends in the global construction industry include:
• Increased government spending through investment in development projects is playing a major role in driving up the growth of the construction sector.
• Increased population and higher purchasing power, reflected in increased GDP per capita has increased consumer demand and hence is boosting the growth of the sector.
• Strong economic growth in developing nations, such as China, India, and the Middle East countries, is driving the growth of this industry and expected to play a major role in coming years as well.
Ankur Gupta, Head Marketing & Communications