Monday, August 13, 2012

Construction sector gaining pace in Dubai, yet again

Despite the slow recovery of construction sector in Dubai, following the global financial crisis, with new developments almost coming to a standstill, now there are increased signs of the industry gaining pace once again, reports Oxford Business Group.

The International food corporation, Nestle, during end of June, announced plans to construct a factory in Dubai, with initial investment of $136mn. The facility will be built on a 175,000 sq meter plot at the Dubai World Central site, and will be used to manufacture food and coffee products.

Soon after, the Dubai-based developer Nakheel, announced the signing of a $7.5mn deal, towards construction of a new mall in the neighbourhood. The Jumeirah Park Community Centre, which spreads across 10,600 square metres, includes retail and food outlets. The construction contract has been awarded to Parkway International Contracting.

Although these projects do not match the scale of those during mid-2000s, it is a clear indication that construction works have begun to gather momentum, once again in Dubai.

It is said that a revision of Dubai Strategic Plan 2015 is being planned for development of the emirate. The plan, which is in its final stages of drafting, lays emphasis on tourism-based development in Dubai, while also taking into consideration the current global economic conditions.

However, on the other end, the Dubai construction sector is still not completely out of the impact of the 2008 economic downturn. It may take some time before all the disputes that arose from global financial crisis are resolved. But, majority of developers in Dubai, have restructured and worked on their debt burdens, which implies that they are now in a better position to move ahead and work towards building the future again.

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