Whichever way you look at it 2020 was a very difficult year for the projects market in the UAE. At just under $19bn of contract awards it was more than 40 per cent down on the 2019 figure, This represented the worst year in nearly two decades as the twin blows of Covid-19 and lower prices hit hard.
The pandemic’s impact was particularly clear given the sharp fall in spending in the latter half of the year after the coronavirus had fully taken hold. Nonetheless, the market was already in decline. After years of falling real estate prices, construction activity had been decreasing over the previous three years and would no doubt have reached a
crunch point with or without Covid-19.
This year should be a lot more promising as life gradually returns to normal. Spending will be spurred by a number of new oil and gas projects in Abu Dhabi led by the multi-billion-dollar Hail & Ghasha sour gas programme. However, construction sector expenditure is expected to remain muted in 2021 and even beyond until demand begins to pick up and oversupply dwindles.
In this challenging environment firms will have to be smart in order to prosper. Selecting the right clients, specialising in niche sectors, and introducing novel technologies are all tools companies can harness in order to stay ahead of the competition.
Likewise, the pipeline of projects in the UAE sits 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 H1 2021 is the update to last year’s 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, 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.
This analysis module will cover:
- Opportunities and challenges in the UAE’s projects market
- Analysis of the pipeline of planned projects and contract awards
- Key policies and drivers shaping the outlook for projects in the UAE
- Political and economic background
- The barriers and challenges that may arise
- Sector-by-sector breakdown of future project plans
- Key drivers of projects in each sector
- The UAE’s most valuable key projects and major project sponsors