The UAE’s recovery from the Covid-hit 2020 continues to be gradual. During the first six months spending on new projects was $6.8bn, far below not only the equivalent period in 2019, but also that of last year’s. As it stands, the market will be fortunate to achieve half of last year’s total for 2021 as a whole.
Much has been made of the decline of Dubai’s real estate market as the chief driver of this decline. However, the postponement of many Adnoc oil and gas projects in Abu Dhabi has also played a role in this year’s poor performance. The delay in the giant Hail sour gas development has been particularly detrimental to the market outlook.
Hopes were high at the start of the year that Dubai’s Expo 2020 would act as a fillip. But the slower than expected retreat of the pandemic combined with the resultant lower numbers of tourists have meant that the feel-good factor around the event may be as strong as initially anticipated.
Ultimately, until demand for real estate starts substantially outstripping supply, and until government finances are secure enough for a rise in capex in the oil and gas sector, it remains difficult to foresee a rapid recovery in the market until well in 2022 at the earliest.
That said, the pipeline of projects in the UAE continues to sit at more than $670bn. Although there are undoubtable challenges in the short term, the long term prognosis is still relatively healthy. Regardless of what happens, the UAE market will remain one of the largest projects markets in the region.
The UAE Projects H2 2021 is the update to this year’s H1 report.
Focused on data, it is aimed at helping companies create strategies for targeting and growing the market. It uses almost exclusively data from MEED Projects (www.meedprojects.com), the region’s leading online projects tracking service. With 15,000 active projects tracked and more than 35,000 in total in the database, MEED Projects makes it possible to quantify current, historical and future trends in the projects market in the region.
I am certain that this report can help you achieve success in the UAE.