Government intervention key to develop and sustain current AED 1.25 trillion worth of construction projects in UAE
The AED 1.25 trillion worth of construction projects in the UAE, which represent 81 per cent of the country’s total project value of AED 1.54 trillion, has highlighted the importance for real estate developers to adopt stricter measures to avoid project failures and delays that result in substantial losses to individual companies and the economy as a whole, points out regional project management firm Collaboration, Management and Control Solutions (CMCS), citing recent industry reports.
CMCS noted that the UAE, which has nearly half of the planned projects in the region worth around AED 3.42 trillion, should raise awareness about project management best practices in order to maintain its leading position in real estate and construction developments. The company believes that the efforts of the government in this regard will ensure sustained economic growth as the developers will work closely with the government to monitor the progress of planned and current projects.
Moreover, the government can also set new project management standards to be adopted by real estate developers to ensure judicious use of resources and careful selection of projects that will result in the creation of a construction sector characterized by healthy competition and high success rates.
“The real estate sector in the region and especially the UAE has no doubt been considerably affected by the global financial crisis, although all economic indicators point towards a steady process of recovery over the coming months. Although some construction projects have been shelved or postponed in the UAE, the number of projects that are still underway or in the pipeline is remarkably high. Given this scenario, it is imperative that all measures are taken to maximise the success rate of the projects, which will in turn contribute to the robust growth of the sector and the economy as a whole,” said Bassam Samman, CEO and Founder of CMCS, which is gearing up for Cityscape Dubai 2009 to showcase its latest project portfolio management solutions including Oracle Primavera, Hard Dollar, Deltek, Synchro, EcoSys and ADePT.
Recent industry reports show that despite the economic slowdown, the value of property construction in the UAE is four times higher than what had been estimated in 2005 and represents an annual growth rate of nearly 50 per cent.