THE UAE construction industry will see a real growth of 4.8 per cent this year, a new study said.

The new construction research report, entitled United Arab Emirates Infrastructure Report Q4 2013, from Business Monitor International is based on increasingly buoyant activity being witnessed in Dubai in particular; and the expectation that Abu Dhabi will follow suit. Significant public spending, a growing tourism sector, increased direct foreign investment and an improved business environment are all driving activity in the construction sector.

However, now a moderated scale of future projects is being witnessed, in line with a more realistic demand picture. This outlook will be supported by ongoing or restarted projects, rather than a stream of new construction contracts, the report said.