OREANDA-NEWS. RnR Market Research Offers Report by Research on United Arab Emirates Infrastructure Report Q3 2016

BMI View: We are maintaining our forecast for solid construction industry growth over our forecast period as investors seeks to capitalise on the infrastructure opportunities in the run up to Expo 2020 hosted by Dubai - particularly in the non-residential and transport sectors. Also supporting interest in Dubai's market is its more diverse economy, which has kept it fairly insulated against the commodities price drop that dampened growth in the more oil-dependent Abu Dhabi.

Forecast & Latest Updates

- We are forecasting 6.6% real growth over 2016 and an annual average of 6.1% over the first half of our forecast period up to 2020. Dubai's preparation to host Expo 2020 is providing major growth opportunities across commercial building and transport infrastructure in particular.

- Over our full 10-year forecast we forecast industry expansion of 4.7% in real terms. Nominal industry value is expected to rise from an estimated USD40.3bn in 2015 to USD85bn in 2025, keeping the UAE as one of the larger construction markets in the Middle East.

- The government is eager to use the public-private partnership (PPP) model more regularly in order to continue to attract private investment and ease the burden on its own budget. In November 2015 the Dubai PPP Law was enacted.