Construction helps build UAE's GDP
The construction sector’s contribution to the UAE’s GDP is expected to reach 11.1 per cent by 2015 driven by a growing expatriate population, according to a study by the Dubai Chamber of Commerce and Industry.
A projected increase in population is expected to drive demand for residential and commercial property in the next three years, the study said.
The UAE population is expected to reach six million by 2015, according to the International Monetary Fund (IMF). Real GDP growth is projected to reach 4.4 per cent in 2015, signifying a revival in the overall economy that will boost the construction industry, the study said.
“In the short term, the UAE construction residential industry may be affected due to the prevalent oversupply of residential units in the market but, in the long term, it will gain momentum based on the optimism of a rising population and a more stable economic growth path,” the study stated. It indicated that rent revenues in the short term will continue to be under pressure due to declining rentals and high vacancy rates.
In 2013, favourable government policies are expected to attract more overseas companies to the UAE’s construction sector as a series of new construction projects further boost the industry, the study concluded.