Turner & Townsend: Upward Trajectory For UAE Construction Market Despite Global Economic Headwinds
The UAE’s construction market is experiencing significant market activity with a new wave of landmark projects announced, despite the impacts of global inflation, increasing costs of construction, supply chain disruption, and contractual and legal constraints, according to Turner & Townsend’s first UAE market intelligence report.
The construction sector plays a significant role in the country’s economy, making an important contribution to the UAE’s economic uplift and development. Over the coming years we expect to see rapid growth in the industry, with the overall economy expected to have grown by 5.1 percent.
Current market sentiment in the UAE remains positive and the country was among a few worldwide to report a rise in workload, and an increase in profit margin expectations over the last year. Whilst travel and tourism remain key pillars of the economy, the UAE’s residential market is set to rise to meet growing demands. This has been influenced by geopolitical tensions, an influx of foreign investment, and general population growth, as a result of the country’s pandemic resilience.
For the most part, real estate sectors continue to dominate the construction landscape, though transportation and road infrastructure developments are key to meeting the needs of the UAE’s expanding population.
Digitalisation and sustainability
Looking ahead, digitalisation of ways of working in the construction will become more pervasive, and more sustainable construction is now firmly on the agenda. There is a clear need for the industry’s key players to invest in exploring approaches towards decarbonisation, and with COP28 on the horizon, an increase in environmental legislation would help drive a green and more sustainable agenda for the UAE’s future development aspirations.
Adam Ralph, UAE Country Manager and Regional Digital Transformation Lead, Turner & Townsend, said: “Our industry is now beginning to invest a greater level of focus and investment in technology to help accelerate the digital transformation agenda. This outcome will help create smarter, more effective, and more efficient ways of working – ensuring that we are able to transform performance on projects and programmes despite any headwinds we may be facing.”
Read the full report here to access data and sentiment insight from across the full supply chain.