Saturday, February 21, 2009

UAE construction sector outlook for 2009 appears bleak

The UAE real estate sector is expected to offer minimal construction opportunities in 2009, according to the 'Gulf Construction Outlook Survey' conducted by Meed, the leading business intelligence provider in Middle East.

The closed-door survey was carried out on the first day of Arabian World Construction Summit 2009 (AWCS 2009) held between the 9th and 11the February 2009 in Abu Dhabi. The survey focused on four major categories, which included market outlook, client-contractor relation, construction costs and construction management.

The survey respondents included senior representatives or CEOs of major construction companies in the GCC.

The Meed Editor, Richard Thompson, said that the survey measured the current market sentiments, and hoped that the survey results would form an effective resource of information for charting a roadmap for the industry.

The Construction Outlook Survey indicates that 96 percent of respondents hoped to see an increase in distress between clients and contractors in construction sector within GCC during the year. Also, two-thirds of the companies said that they intend to shift their focus towards Abu Dhabi, Qatar and Saudi Arabia this year.

AWCS 2009 was one of Meed's most prominent events, which brought together all industry pioneers from 169 companies of 25 countries.

The Director of Arabian World Construction Summit, Anca Westley, said despite the challenging economic climate, the 2009 summit reflects the region's ambition to maintain its status as world leader in construction sector. Saudi Arabia has emerged as the single strongest market in the region, with the government-supported infrastructure in place to offer the best opportunities this year.

"Meed will continue to work closely with the industry to offer regular updates about what could be the most challenging year in the construction sector," he added.

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