WITH economic recovery in sight and continued growth in investments, the UAE construction industry is expected to post a robust growth in the coming years, said RNCOS, an industry research firm.

In a report entitled ‘UAE Construction Industry Outlook to 2012’, RNCOS said the construction industry in the UAE continues to witness massive investments from both public and private enterprises aimed at exploiting its untapped potential. The UAE construction industry is expected to grow at a CAGR (compound annual growth rate) of over 18 per cent between 2009 and 2013, the report estimates.
The report also shows that the country has emerged as the largest construction market in the GCC region. Outpacing Saudi Arabia, it rose to the top spot in terms of infrastructure investment.
At the end of 2008, the UAE accounted for around 20.3 per cent of total construction industry in the region followed by Saudi Arabia, Algeria and Egypt and even managed to record an astonishing double-digit growth despite adverse economic conditions. The report has also found that the construction industry contribution to the country’s GDP has substantially risen over the past couple of years.
With the government’s commitment to boost infrastructure and diversify its economy from oil-driven to other industrial sectors, the sector is expected to attract huge sum of investments.
The report has categorised the entire construction sector into four important segments: tourism, hospitality, retail and healthcare. In an analysis of each segment, the report has identified the important players operating in the sector, detailing their business profiles and strategies for expansion.
In addition, the report has analysed emerging trends including important drivers and key challenges to help investors understand the market conditions.
The report has identified possible growth areas for expansion along with an overview of competitive landscape in the UAE infrastructure industry.
It contains details about the under-construction projects in tourism, hospitality, and healthcare coupled with information on retail project investment.