A disappointing year for growth in the UAE
09 November, 2017 | By ELIZABETH BAINS
The UAE is seeing muted growth in 2017, estimated at less than 1.5 per cent, as low oil prices and production cuts weigh on the economy.
The non-hydrocarbons sector is faring much better, with GDP growth of more than 3 per cent, but it is largely Dubai’s preparations for hosting Expo 2020 that have been driving the market.
Capital spending in Abu Dhabi (outside the hydrocarbons sector, which is having a strong year for contract awards) remains constrained, with the focus instead on completing megaprojects such as the new airport terminal, the $1.6bn strategic tunnel enhancement wastewater project and the Louvre museum, which is due to open in November.
To boost income, the federal government is introducing new taxes, beginning with excise duties on tobacco and carbonated drinks this month and VAT to follow at the start of next year. While this makes good sense economically, for the ordinary person it is another leap in the cost of living in the UAE.
With about 80 per cent the population comprising expatriates, it is essential the country remains an attractive lure for foreign workers. The rising costs coupled with stagnant wages risk tipping the balance. In this regard, it is fortunate that property prices are weakening. What would usually be seen as a negative economic barometer, falling rents and sales prices on this occasion will be welcomed by the authorities as helping to soften the blow of the new taxes being introduced.
Abu Dhabi Electricity & Water Authority (Adwea) is planning to oversee the development of the emirate’s first independent water project (IWP).
Adwea recently received bids from firms to provide technical advisory ...
Tough times lie ahead for the market as projects are put on hold and developers are forced to lay off staff
Dubai has propped up the UAE’s construction market in recent ...
Highlights from the fifth Mashreq Construction Club
At the fifth meeting of the Mashreq Construction Club on 12 December 2018 at the JW Marriott Marquis Hotel Dubai, international engineering firm Arup ...
Force majeure claims are providing new insights into how the regional construction sector’s behaviour must change
The rapid spread of the Covid-19 illness has led to an unprecedented ripple effect on the ...
The UAE's offer to repatriate expatriates has not been taken up by India
Discussions are under way to repatriate foreign workers, including Indian and Pakistani nationals, from the UAE as the ...
There are more than $155bn of residential and mixed-use schemes still on hold
The decision by Bahrain’s Judicial Committee for the Settlement of Stalled Real Estate Projects plans to auction the ...
Understand the Covid-19 outbreak, its impact on the global and regional economy, and initial implications for specific sectors
Click here to download the full document
Regulatory changes pose challenges for companies and regulators. But they also provide opportunities
The Gulf construction industry is facing an important transition as it seeks to iron out the chronic weaknesses ...
Major reforms required to make aviation sector more competitive
While a formal appointment has yet to be made, it appears that US-based Goldman Sachs has been chosen to advise Saudi Arabia’s Civil Aviation ...
Contracts cover work on the Al-Ain Road and a bridge taking Al-Khail Road over a new canal
The Roads & Transport Authority (RTA) has retendered two road construction contracts in Dubai.
EXCLUSIVE: Abu Dhabi plans independent water project
Dubai construction stalls as contract awards slow
CONSTRUCTION CLUB 5: Trends shaping the future of
Covid-19 sparks contract issues
States deliberate on stranded South Asian workers
Stalled real estate projects are still an issue
Coronavirus executive briefing (24 June)
Regulating Construction: Adapting to New Standards
Airport stake sale will test Saudi Arabia’s resolve
Dubai retenders two road construction contracts
09 November, 2017 | .By ELIZABETH BAINS