Today's Edition
YOUSEF AL ARABI (ABU DHABI)
The demand for contracting services in the UAE increased by 40% during 2023 compared to 2022, according to directors and CEOs of companies operating in the sector.
They attributed the increased demand to the recovery of the real estate and tourism sectors and the launch of new projects by real estate developers.
According to recent data from the BNC Network, the value of contracts awarded in the UAE increased by 53.2% during the first nine months of 2023, reaching approximately Dh189.59 billion ($51.66 billion), compared with Dh123.75 billion ($33.72 billion) in 2022.
Real estate retained its lead, accounting for almost 60% of the total contracts awarded in the UAE from January to September 2023, growing by 12% to reach Dh114 billion ($31.05 billion), compared with Dh101.4 billion ($27.64 billion) during the same period last year.
Profit Margins
Nashat Sahawneh, the Chairman of Al Hamad Group, told Aletihad that the demand for contracting services in the country has increased by 40% since the beginning of this year compared with the previous year.
Sahawneh attributed the increased demand for contracting services in the UAE to the recovery of the real estate and tourism sectors, as real estate developers rushed to launch new residential and hotel projects.
He pointed out that the rise in demand levels coincided with the stability of construction material prices, providing an opportunity for the sector to recover and improving contractors' profit margins.
Sahawneh expects continuous growth for the construction and building sector in 2024, especially in real estate, given the overall strong performance of the national economy.
Optimistic Outlook
Avin Gidwani, the CEO of BNC Network for Research, said: "The contract award performance in the UAE has been excellent since the beginning of 2023."
He noted that optimism prevails in the local market regarding the growth of construction projects in the UAE during the next year, based on the announcement of a series of new projects in the country.
According to BNC Network data, utility projects ranked second after real estate in terms of contract value, accounting for 19% of the total contracts awarded in the country during the first nine months.
The value of contracts in the sector grew by 275%, reaching Dh36.15 billion ($9.85 billion) from January to September of 2023 compared with Dh9.65 billion ($2.63 billion) during the same period of 2022.
