June 2016, Gurgaon
• UAE’s Industrial Construction Industry has become attractive to investors and thus is expected to continue showing positive growth rates in coming years.
• UAE government aims at expanding Industrial Construction Industry, contributing to the growth of non-oil sector, which reduces the influence of oil and gas adverse market shocks on the nation’s economy.
Ken Research announced latest publication on “Industrial Construction in the UAE to 2019: Market Forecast”, offer insights on the changing trends and key issues within the UAE’s Industrial Construction Industry. The publication includes an insightful analysis of the operating environment and expected growth trends of the industrial construction industry in the United Arab Emirates. It contains 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’s Industrial Construction Industry through increasing demand of improved living conditions. With increase in population demand for manufactured consumer goods, electricity and power to general public as well as manufacturing units, better health services, and sanitation and food production have also increased. This demand trend has necessitated the construction of power plants, manufacturing units, chemical and pharmaceutical plants, fertilizer and pesticides production plants and more. This has consequently led to the expansion of the UAE’s Industrial Construction Industry.
The promising market outlook of the UAE’s Industrial Construction Industry is also sustained in long term on account of construction expansionary government policies aimed at diversifying and increasing the share of non-oil sector of the economy in nation’s GDP. 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’s Vision 2021 National Agenda, the government aims to increase the manufacturing sector’s contribution to GDP from 11% to 20% in 2020, and 25% in 2025. 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.
Key Topics Covered in the Report:
• Detailed analysis of the UAE’s Industrial Construction Market for the period 2010-2019
• historic and forecast market value data for the industrial construction industry
• Historic and forecast market value for the industrial construction industry by construction output and value-add methods.
• Historic and forecast market value by construction activity (new construction, repair and maintenance, refurbishment and demolition)
To know more on coverage, click on the link below:
Commercial Construction in the UAE to 2019: Market Forecast
Worldwide Construction Industry – Opportunities in Developing Regions
Ankur Gupta, Head Marketing & Communications