Overview of the residential construction industry in the United Arab Emirates
Historic and forecast market value for the residential construction industry by construction output and value-add methods for the period 2010 through to 2019
Historic and forecast market value by construction activity (new construction, repair and maintenance, refurbishment and demolition) across the residential construction industry for the period 2010 through to 2019
Considering the macroeconomic scenario, its population composition, governmental regulations and the structure and dynamics of the industry, this segment undeniably promises well anchored, structured and withstanding growth prospects till 2019.
2. Contribution of Residential Construction to GDP in the UAE
9.5
10
10.5
11
11.5
12
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
(Percentage)
Construction as a Percentage of
GDP
Construction as a percentage of GDP
The construction segment made
up for approximately 11% of the
UAE’s GDP in 2015
In 2011, there were 46
construction projects declared in
the UAE amounting to about USD
625 billion
This industry will display a
sustainable growth for the years to
come and will cater to the UAE’s
increasing residents
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3. Factors
responsible for
growth of
Residential
Construction in
the UAE
Low and
stable
inflation
rate
Increasing
population
growth
rate
Upsurge in
expatriate
population
High GDP
Growth
rate
Growth of Residential Construction in the UAE
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4. WEAKNESSES
• Still on its way to
recovery after
the Global
Financial Crisis
OPPORTUNITIES
• Ease of doing
business rank is
improving
•
STRENGTHS
-Stable industry prone to minor setbacks
-Major segment of the UAE’s construction industry
-Making efforts to tap environmentally conscious
consumers like Dubai’s TSC project
WEAKNESSES
Still on its way to recovery after the Global
Financial Crisis of 2008 and is endeavoring to reach
pre-crisis level
Excess supply of residential units in the economy
leading to postponement of new residential
construction projects
OPPORTUNITIES
Ease of doing Business ranking improvement
Popular destination for business and leisure
Momentous growth expected because of high
population growth rate and GDP growth rate in the
long run
THREATS
No scope of improvement in the short run due to
reduction in rental rate and increasing vacancy
rates
Possible scope of losses for existing players
SWOT
ANALYSIS
SWOT Analysis
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5. Major Players in Residential Construction Market of the UAE
EMAAR PROPERTIES PJSC
• One of the world’s biggest construction companies and is listed on Dow
Jones Arabia titan’s Index
• Known for building Burj khalifa in Dubai, United Arab Emirates
ALDAR PROPERTIES PJSC
• Second largest real estate developer by Assets in the Gulf
• Projects to build a Ferrari based theme park in Abu Dhabi
NAKHEEL PROPERTIES PJSC
• It is a government owned company and cut throat competition exists
between Nakheel and Emaar Properties in Dubai for projects in the
residential sector
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6. Government Regulations
Role of
Government in
the Residential
Construction
Industry
Owns real estate
companies like
Nakheel PJSC to
ensure objectives
are in line with that
of the economy
Continues to back
the sector with
liquidity and
legislation when
needed
Makes the
regulations more
user friendly
The UAE government allows
the non UAE nationals to have
freehold or leaseholds in
certain areas of the country
that successfully brings in
more foreign capital
Incentives for real estate
developers are enhanced by
offering them visa from six
months up to three years in
duration
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7. Scope of the Report
• Overview of the residential construction industry in the United Arab Emirates
• Historic and forecast market value for the residential construction industry by construction output and
value-add methods for the period 2010 through to 2019
• Historic and forecast market value by construction activity (new construction, repair and maintenance,
refurbishment and demolition) across the residential construction industry for the period 2010 through
to 2019
• Considering the macroeconomic scenario, its population composition, governmental regulations and the
structure and dynamics of the industry, this segment undeniably promises well anchored, structured and
withstanding growth prospects till 2019.
7
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