(MENAFN - Khaleej Times) The UAE's construction sector is predicted to move out of the doldrums in 2012 with an estimated 15.068 billion worth of new contracts on the anvil - an increase of 26.57 per cent from last year, a new survey reveals.
The total value of ongoing construction projects in the UAE is 1.249 trillion with buildings accounting for 871.6 billion, energy (oil and gas, petrochemicals, power and water projects) for 190.9 billion, and infrastructure (roads, bridges, rail, sewerage, wastewater and marine) projects amounting to 187.2 billion, according to research specialists Ventures Middle East.
According to an up-to-date tracking system of projects that are either under way or planned throughout the region, the UAE's projects industry was valued 581 billion as at January 2012.
New projects in February are expected to boost the total value of projects to 636 billion, according to Meed Projects.
Another report by the business research and intelligence firm CPH World Media revealed that the UAE has the largest number of active projects in the Middle East, a region with more than 1,200 projects valued at around 931 billion under way in 2012. The UAE figures globally at the top in terms of per-capita expenditure on construction and is relatively free of entry barriers.
In a research report published in January, Meed Cost Indices forecasts that construction costs in the UAE will fall by 1.3 per cent in 2012.
The drop is the result of a fall in demand for construction materials due to a contraction in the UAE project market, which witnessed a 52 per cent slump in the value of contracts awarded in 2011 compared to 2010. MCI predicts however that prices will rise again in 2013 as projects originally planned for 2011 are re-launched in 2012, confidence returns to the global economy and finance for projects becomes more readily available.
Ventures Middle East has released its latest survey in the build-up to World ecoConstruct, featuring Infrastructure Arabia Summit, the pioneering industry event taking place from 22-25 April 2012 at the Abu Dhabi National Exhibition Centre.
Tsitsi Lynn Makuni, exhibition director of World ecoConstruct, said the latest figures illustrate that the Middle East continues its aggressive development plans. "The Abu Dhabi Executive Council has approved spending on the new billion-dollar airport terminal, a metro system, two industrial zones, more than 20,000 new homes, 14 new hospitals and 24 new schools."
"The importance of the building and construction sector in the local economy makes this event very important for the Municipal System to participate in," said Ahmed Mohamed Al Shareef, undersecretary of the Department of Municipal Affairs. "The DMA and the three Municipalities of the Emirate, Abu Dhabi City Municipality, Al Ain City and the Western region, all play an important role in achieving sustainable development in this sector and will showcase many sustainable projects at the exhibition, reflecting our commitment to achieving sustainable development as per the Abu Dhabi 2030 vision," he said.
Across the GCC, sustainable building projects spearhead the growing real estate construction boom. Masdar City, an emerging low-carbon, low-waste global clean-technology development in Abu Dhabi is a leader in this and aims to become one of the world's most sustainable cities in the world powered by renewable energy.