DUBAI 12 September 2017: Total value of 7,878 active building projects in the UAE reached US$227.9 billion (Dh836 billion) at the beginning of September 2017, according to project research and intelligence provider, BNC Network.
Of these building projects, high-rise buildings account for $100.5 billion while mid-rise and low-rise buildings account for $64.5 billion and $62.9 billion, respectively, as per BNC Construction Intelligence, said Wam.
The announcement came at Cityscape Global which was inaugurated yesterday by Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum at the Dubai World Trade Centre.
Among the 7,878 projects, the majority are located in Dubai and the Northern Emirates. As many as 3,857 buildings are coming up in the Northern Emirates, 2,812 in Dubai and 1,208 in Abu Dhabi. In terms of value, $121.1 billion worth of buildings are being developed in Dubai, $64.3 billion worth of projects in Abu Dhabi and the rest $42.6 billion are being built in the Northern Emirates.
In August, the number of building projects in the UAE increased by 2 per cent compared to July, 2017, but in dollar terms, there has been no significant movement, as per BNC project intelligence.
“Our findings clearly show that buildings projects are going ahead as planned due to anticipated rise in demand in the coming years with the run up to the historic Expo 2020,” Avin Gidwani, Chief Executive Officer of BNC Network, says. “Most project owners, developers are looking at completing their building projects before October 2020 when Dubai expects to receive 20 million hotel guests as well as 25 million visitors to the Expo site.”
The building industry constitutes 83 per cent of all active projects in the UAE’s urban construction sector and in dollar terms these projects account for 44 per cent of the total estimated value.
A total of 48 building projects with a combined estimated value of $2.5 billion moved to construction from other stages during the month. The largest building project in dollar terms to be awarded in the month of August was the 729-villa complex project which is a part of Sheikh Zayed housing programme located in Al Montezi in Ajman worth $272 million.
“The report clearly reflects strong building project activities across the UAE, despite a low-oil price environment that could have negatively impacted the building projects and construction sectors. However, we see no let-up in building and construction activities in the UAE, that reflects the resilience of the country’s economic activities and development, that are sustainable in the long run,” Gidwani says.
“Most building projects are being gradually occupied by buyers and end-users, despite the change in pace in economic activities, and that’s what make the industry more sustainable.”
A total of 228 building projects with a combined estimated value of $4 billion were completed during the month. The largest project in dollar terms to be completed in August was the Presidential Palace project located in Abu Dhabi worth $1.6 billion.
Value of 21,893 GCC construction projects @ Dh8.8 trillion
1. Total value of 21,893 construction projects reached Dh8.8 trillion (US$2.4 trillion) at the beginning of September 2017 – which is higher than the GDP of 205 countries, and lower than the world’s top six economies.
2. Value of urban construction projects reached $1.185 trillion (Dh4.34 trillion) in September 2017, BNC Construction Intelligence report shows
3. Value of the energy projects have reached $331 billion (Dh1.21 trillion) in September 2017
4. Value of utility project in the Gulf reached $302 billion (Dh1.1 trillion) in Sept., 2017
6. Total value of industrial projects reach $181 billion (Dh666.47 billion), according to BNC Network
7. The GCC constitutes 85 per cent of all active projects in the Mena and in dollar terms, these projects account for 68 per cent of the total estimated value.
8. Value of the oil and gas projects in the oil-rich Gulf region has reached $331 billion (Dh1.21 trillion), while the total value of utility project in the Gulf reached $302 billion (Dh1.1 trillion) in September 2017, the report shows.
9. Total value of industrial projects reach $181 billion (Dh666.47 billion), according to BNC Network, which will help the region to become self-reliant and less dependent on imported products – as the completion of the industrial projects mean they will produce value-added products.
10. A total of 142 active projects with a combined estimated value of $14 billion moved to construction from other stages during the month. The largest project to be awarded in August was Phase 1 of Duqm Oil Refinery located in Oman worth $2.75 billion
11. A total of 596 active projects with a combined estimated value of $13 billion were completed during the month. The largest project to be completed in August was the Presidential Palace project located in Abu Dhabi.
12. In August, 90 active projects with a combined estimated value of $15.6 billion were put on hold in the GCC. The largest project to be put on hold was Section 1 of Phase 1 of Makkah Mass Rail Transit (MMRT) System located in Makkah, Saudi Arabia