Construction & Building Material Trends

Construction & Building Material Trends in UAE 2021

About The UAE economy is predominantly dependent on the construction and building material sector. This sector is the biggest contributor to the success or failure of the economy especially in Dubai. Around 5000 employees are part of this industry out of which 30% come from the construction material sector in Dubai.

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Construction Industry technology This industry is a huge and diverse complex that is united by the common aim of developing land. The breadth of its operations is quite wide. This complex whole is comprised of many different AWARD 2 serves a variety of purposes, individual components. The components Itinclude building giantsmaking and

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commercial property developers who have the final say in what is

built and where, designers who focus on the building details, who extract or manufacture the required construction items, and AWARD 3

contractors who are involved in the physical task of construction.

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Effect of Covid-19 With the pandemic hitting the economies all over the world, the construction sector in UAE also underwent a 10.4% contraction in 2020. Construction work was halted all over UAE which led to the fall in the net profit in the sector. However, experts predict a rebound of more than 9% this year. The government of UAE is taking proactive steps to overcome this dip in profits like: ● Developing smart cities. ● Digitizing at least 1000 government agencies. ● Installing several wi-fi spots all over the country.

The Trends The trade policies of the UAE are quite liberal thus attracting a lot of foreign investors who are jumping into the construction industry. Let us explore some of the trends in the building and construction materials sector: ● Construction sector to receive a boost from the tourism industry CHARLES EAMES ● A huge number of construction projects in the offing

● Construction sector to receive a boost from the tourism industry The highlighted event in the UAE calendar this year is of course the EXPO which is expected to be held from 1 October 2021 to 31 March 2022.

Building material suppliers in Dubai will have steady projects and clients in the run-up to the EXPO. These include tourism and hospitality projects. However, what holds the profit margins back is the high cost of materials and fierce competition.

● A huge number of construction projects in the offing As mentioned above, the UAE government is leaving no stone unturned to boost the construction industry. Many initiatives are being taken up like : ● Dubai Tourism Strategy. ● Energy Strategy 2050. ● The Sheikh Zayed Housing Programme.

A historic deal has also been signed between Israel and the UAE opening up a host of investment opportunities. Both the countries have agreed to focus their efforts on the energy sector.

The UAE government predicts a dip in the commercial building sector after the conclusion of the EXPO. To manage CHARLES EAMES this, they have tried to bring in more investors and finalize more construction projects.

Conclusion In conclusion, we can see that the construction and building material suppliers will have to navigate their way through fewer profits and fierce competition in the year 2021. However, with dedicated efforts and government support, it is estimated that the value of the UAE construction sector will reach an estimated value of 133.53 billion USD in 2026 from 101.45 billion USD in 2020.