As embattled GCC states fight hard towards recovery after the global recession, government-led investment in major infrastructure and strategic projects is helping to reduce contraction in construction activity, organisers of CityBuild Abu Dhabi say. How large is the construction scene in the region? Could we have an overview of construction projects in various sectors in the UAE? What impact will CityBuild have on Abu Dhabi planners, developers and builders in the next few years?
“Government or government-related investment in shipyard, seaport and airport expansions; new hospitals, colleges and universities as well as major road upgrades, now make up a significant and growing proportion of the region’s construction activity,” said Graham Wood, group director of CityBuild Abu Dhabi.
The first CityBuild Abu Dhabi (18-21 April 2010, Abu Dhabi National Exhibition Centre) will bring together industry suppliers, manufacturers, distributors, architects, engineers, importers and procurement decision-makers.
It is being organised by IIR Middle East, the largest trade and consumer event business in the region with a portfolio of more than 40 large-scale events across a variety of industries. CityBuild Abu Dhabi, will debut alongside Cityscape Abu Dhabi, the international real estate investment and development event.
Wood remarked: “With an industry summit, product demonstrations, the ‘Innovation Zone’ and an industry awards programme, CityBuild Abu Dhabi has to be one of the most eagerly anticipated shows for the regional building and construction industry.”
The organisers responded to questions put to them:
Putting the current construction picture into perspective on a Middle East basis, there are around half a trillion dollars’ worth of building projects in the region if we go by what Proleads, the research group says. Of these, 48 per cent are being executed, 27 per cent are in the pre-execution phase while 20 per cent are on hold and 5 per cent are cancelled.
Of all the GCC countries, Saudi Arabia and Qatar have been the least affected by the global downturn.
The Saudi government has prioritised job creation. This in turn requires heavy investment in infrastructure such as power, water, utilities, transport and healthcare. In addition, with the oil price comfortably above $70 and forecast to remain there, many infrastructure projects are certain to come to fruition.
Qatar, with massive revenues from gas, has probably the least worries about liquidity in the GCC. Isolated by long-term pricing agreements, Qatar remains unaffected by oil commodity fluctuations. Moreover, the Qatari government is working to ensure its infrastructure will rival the best in the region.
Although the UAE has been hit, in particular Dubai, the level of construction work nevertheless is still the highest in comparison to neighbouring countries. Thanks to Abu Dhabi, 2010 will be a lucrative year for the Emirates. Longer term demand may take a few years to catch up with increasing building supply coming onstream.
From Proleads’ figures of 2009, Quarter 4, we learn there are 2,552 projects having a budget of $929.09 billion. Projects amounting to 61 per cent of the budgeted value are currently active.
In the breakdown, the residential sector has 682 projects with $306.5 billion of budget value and 62 per cent of that budget currently active.
In the commercial sector, there are 462 projects of a budget value of $253.2 billion with 60 per cent of the budget active.
In the hospitality sector there are 392 projects of a budget value of $162.35 billion with 63 per cent of the budget active.
In the retail sector there are 336 projects of a budget value of $148.89 billion with 64 per cent of the budget active.
In the education/healthcare sector there are 680 projects of a budget value of 58.08 billion with 64 per cent of the budget active.
Mixed-use projects - 75 per cent of the budget value for residential projects is allocated for that purpose. For other sectors it is: commercial 79 per cent, hospitality 90 per cent, retail 98 per cent and education & Healthcare 79 per cent.
With CityBuild and partner Cityscape, attendees are provided a one stop shop for all involved in the industry.
CityBuild as an event will grow significantly over the next few years and establish itself as the must-attend exhibition for not only the Abu Dhabi market, but also across UAE and pan-GCC. Developers will use the event to source new products and learn from the 2030 vision, displayed across the emirate. We believe that those exhibiting will open themselves up to the potential of additional business across the region.
