UAE STILL THE LARGEST CONSTRUCTION MARKET IN GCC - REPORT

By Muin Abdul Majid

DUBAI, July 21 (Bernama) -- The United Arab Emirates (UAE) remains the
largest construction market in the Gulf region amid challenges brought about by
the global economic downturn, according to a recent study.

As far as the UAE was concerned, the report prepared by the Dubai Chamber
of Commerce and Industry said what had changed was that the market was being
driven by development projects in Abu Dhabi rather than Dubai.

According to the study, more than US$714.8 billion worth of construction
projects were currently either at the design stage or underway in the UAE.

The UAE is followed by Saudi Arabia with US$283.8 billion worth of projects
in the pipeline and Kuwait at US$184.8 billion.

In total, the six-nation GCC has infrastructure and construction projects
worth US$1,368 billion in the pipeline, according to the Dubai Chamber report
whose figures were based on data from various government agencies.

It also pointed out that an analysis of the largest construction and
infrastructure projects by value in the GCC showed that five of the region's
10 biggest schemes planned or underway were in the UAE's capital the emirate of
Abu Dhabi.

The report further said that the UAE was planning to expand its rail
network with the development of three rail schemes, as well as strong
investments in social infrastructure such as hospitals, schools and museums.

It said developers in the UAE were expecting a more promising 2011 and
beyond following a challenging 2009 and 2010.

"In recent months, firms are branching into new markets, switching focus
from private to public sector schemes and forming new alliances in a bid to win
work in an increasingly competitive environment.

"This trend is expected to continue in the short-term with the UAE
government's drive to stimulate the economy by spending heavily on
infrastructural projects, particularly in Abu Dhabi," it said.

The report observed that until recently it had been Dubai's real estate
projects that had dominated the industry.

It noted that the global economic slowdown that took hold towards the end
of 2008 brought an abrupt end to the UAE's construction boom.

"Since then, many building projects have been cancelled or put on hold and
there has been little in the way of new project awards," it said.
-- BERNAMA