UAE contract awards could reach $45 billion
The UAE could see a five per cent uptick in new construction contract awards by the end of this year, according to Faithful + Gould.
Approximately $22 billion worth of awards were made in the first half of 2017, according to the latest Construction Intelligence Report by Faithful + Gould. It is likely the total amount awarded for this year will be $45 billion, a 4.3 per cent increase on 2016.
According to media reports, Regional Development Director David Clifton said that there is cause for optimism in the UAE, especially as awards are historically weighted towards the final quarter of the year.
The second half of 2017 could see a number of major projects at Emaar Properties' Dubai Creek Harbour site, as well as infrastructure packages relating to Al Maktoum International Airport and the Abu Dhabi Metro project. Dubai Holding also unveiled the $1.7 billion Marsa Al Arab tourism project and the $1.36 billion Emirates Towers Business Park.
Another source of project funding is likely to come from other forms of alternative financing such as public-private partnerships, although UAE and other GCC countries would have to compete for this alongside markets where PPP schemes are more mature, such as Britain and the US, according to Clifton, adding that it is important to try to keep contractors experienced in delivering PPP schemes engaged in the market.