UAE to spend $329 billion on construction by 2030
Across the Middle East, more than $1 trillion will be spent on delivering major infrastructure, energy, property and transportation projects.
November 19, 2013 12:09 by kippreport
The UAE will spend $329 billion on delivering major construction projects by 2030, according to recent research by EC Harris.
The report, Middle East Major Construction Programmes – Mitigating the Risk, reveals that these construction projects, defined as those costing more than $1bn and delivered over a relatively short period of time, will peak in the UAE in 2016, with projects worth $40.4bn due to be delivered.
Of the six countries covered in the research, the UAE is anticipated to spend the most on major projects, followed by Saudi Arabia ($255bn), Qatar ($156.8bn), Kuwait ($130.3bn), Iraq ($123.3bn) and Oman ($21.8bn).
More than 1.2 million construction workers will be needed during this period.
The research highlights that as the Middle East region is experiencing unmatched economic and social developments, due to the large volume of planned mega projects, the potential shortage of labour and material sources could have a negative impact on delivery.
Across the Middle East region, more than $1 trillion will be spent on delivering major infrastructure, energy, property and transportation projects by 2030.
Alistair Kirk, head of infrastructure, industry and utilities for the Middle East region at EC Harris, says that these projects will bring diversification, investment (both foreign and domestic) and job creation in the region on an unparalleled scale. He warns however, that with demand currently outstripping supply for human capital and material resources, there is risk of inflationary rises to secure resources in a competitive market.
“With collective thinking, governments, developers and contractors can ensure that all major projects in the region can be delivered on time, on budget and to the required quality,” he says.
The report concludes that to accommodate the influx of labourers, developing physical infrastructure, such as roads, airports and rail links, along with employee amenities, including housing, school and health facilities, is vital to the success of any major development.