More than half of the number of construction projects in the UAE have been put on hold, but despite the negative impact of the global economic crisis, work on projects worth $698 billion continues to move ahead, according to an industry report.

“The UAE may no longer be the land of milk and honey but it is still in a far better position than most,” said Emil Rademeyer, director of Proleads Global, the Dubai-based publishers of the first in-depth investigation of its type. “To put it into perspective, the $698 billion of continuing work we are reporting is almost equivalent to the latest stimulus package proposed for the US.”
The report examines projects across real estate, infrastructure, leisure and entertainment, as well as projecting the state of the industry for 2009. It concludes that 52.8 per cent of the total current civil construction project portfolio of the UAE, worth a combined total of $582 billion, is now on hold while a further $698 billion remains in operation. It also finds that while numerous real estate projects were scheduled for completion in early 2009, the rate at which projects are being completed has slowed down.
The report recognises “potential trouble” if the rate projects go on hold increases further but nevertheless sees a “resilient industry” in terms of cash flow levels at a time of global recession.
Within the real estate sector, it is likely that the UAE will witness more deferred projects throughout 2009 as will be the case, but to a lesser degree, within the infrastructure sector, the report says.
The Proleads investigation encompasses 1,289 projects in real estate, including residential, commercial and retail buildings; infrastructure, including roads, railways, bridges, ports, educational and healthcare facilities; and leisure and entertainment which covered sports facilities, theme parks and hotels. Carried out on information correct as at mid-January 2009, Proleads Global claims its data analysis has 90 per cent accuracy. It found that at mid-January, real estate projects continue to account for a huge 84 per cent total of the $1.28 trillion total budget; compared with only 8 per cent each for both the infrastructure and leisure and entertainment sectors.