In our last edition, we gave you the random numbers.
This time, we want to give you one more number
that will astound you, which will begin to give you a
snapshot of the construction industry in the UAE and
the Middle East. Within the next 5 years, a further
32,000 hotel rooms will be built in the UAE. Yes, you read that right, 32,000 rooms with a spend
of $40 billion. That will double the amount of hotel
space in the UAE in 5 years. And these numbers only
cover those hotels that have been announced. With
more projects being talked about, nearly every week,
you get a good idea about how dynamic the
construction market is and how it will continue to be
for a good few years at least.
Despite the Israeli - Palestine conflict and the regular
insurgences within Iraq, the whole of the Middle East
is experiencing some phenomenal growth. Why?
Diversification. In times gone by, oil was a focus -
but using that market as a lever, the astute leaders
in the Middle East are looking at other ways of
bringing money to the region. One of these areas is
tourism. There is a big push for it in the UAE -
especially Dubai, and with tourism brings the need for
labour and indeed construction.
The construction breakdown activity really does
focus on the UAE, with two thirds of all spending
occurring in the Emirates, with ‘minimal’ percentages
focused on the other GCC states. I say minimal,
because if you look at a pot of $60 billion dollars,
there is significant construction going on in all areas.
And by the time you read this, that number will
probably have increased.
It's not surprising that Dubai has the bulk of the
market. For those of you who've visited Dubai
recently, or who currently reside here , you will
have seen more cranes per day than you had done in
the whole of your lifetime (and probably more
associated traffic on the roads as a result!). But
Dubai does not remain as the sole area of
development. With $15 billion being planned by the
Abu Dhabi Tourist board for the development of
Saadiyat Island, it is clear that Abu Dhabi is following
Dubai’s successful investment model in diversifying
away from a predominant oil economy. 30 new hotels,
representing a further investment of $10 billion,
shows exactly where the economy is going.
The onus is on encouraging private investment and
$49 billion dollars focused on the civil industry, over
the next 3 years alone, is no small change. Further
exponential growth will show that this industry has
no intention of letting up, in a part of the world
which appears to be defying modern economics.
The data for this newsletter was obtained from a
report on the 'Middle East Construction Boom' by
Sentinel. The full report concentrates on the Industry
Structure, Main Industry Players with project types
and selected projects. Sentinel is a market research
company providing business to business services in
the construction sector. The Sentinel Market
Intelligence database provides market information on
all construction projects with budgets exceeding
US$10 million. To purchase the report or enquire
about Sentinel's products, contact Xavier Bastien at
Xavier@sentinel-me.com or visit www.sentinel-
me.com
Bite sized and digestible, that's how we like to keep
it.
Smoke you next time!
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GRAPESHISHA NEWS SNIPPETS
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1. The UAE is observing a 7 day mourning period due
to the passing of late King Fahd of Saudi Arabia
2. Thermometers recorded their hottest day for six
years in the UAE with the mercury rising above 50C
in Abu Dhabi.
3. The legendary street landscape of shawarma grills
has ended. The have all been moved inside due to an
official ruling based on health reasons. Whether it is
cleaner inside the shops is debatable.
4. Big names in music continue to view Dubai as
a destination of choice. The Black Eyed Peas & Daniel
Beddingfield will play out in September, while a
certain Mr Robbie Williams will grace us with his ego
next April. Rock on!
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