United Arab Emirates sees construction growth ahead of Expo 2020
2017 will be a very dynamic year for construction in the United Arab Emirates, with results emerging in particular from the third quarter onwards. The numerous large-scale projects under way will prompt rapid growth in the construction sector, which in turn will drive the entire local economy.
In Dubai in particular, the value of real estate transactions in the first quarter of 2017 reached $21 billion thanks to work for Expo 2020 (Source: Dubai Land Department). Investments will be spread over a number of segments (housing, schools, healthcare facilities and public buildings), with a total of 47 projects valued at $3 billion in 2017 alone.
The government also intends to encourage real estate development for low-income citizens and renovate some areas of the old Dubai with the launch of a 250,000 square metre housing project as part of the Zayed Housing Programme. A further 341 housing units are planned in the Al Khawaneej area.
With the aim of attracting new foreign investment, the government is promoting industrial investments valued at more than $70 billion to be completed by 2025.
The prospects for tourism are also good. According to the February issue of Collier’s Hospitality Report, the goal for 2020 is to build some 160,000 new hotel rooms in the areas of Downtown Dubai, Palm Jumeirah, Port Saeed, Garhoud, Saadiyat Island and Abu Dhabi.