{"id":5306,"date":"2016-02-21T02:03:01","date_gmt":"2016-02-20T19:03:01","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/?p=5306"},"modified":"2016-02-20T23:14:40","modified_gmt":"2016-02-20T16:14:40","slug":"contractors-face-slowdown-in-abu-dhabi-unless-new-projects-come-to-market","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/contractors-face-slowdown-in-abu-dhabi-unless-new-projects-come-to-market\/","title":{"rendered":"Contractors face slowdown in Abu Dhabi unless new projects come to market"},"content":{"rendered":"


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\nAbu Dhabi’s construction sector is set to outperform the emirate’s wider economy this year, but there are fears that not enough projects are coming to market to replace those being completed.According to BMI Research, Abu Dhabi’s GDP is set to slow to 2.8 per cent this year, down from 4.3 per cent last year. It said that construction would outperform the overall economy, with an average annual growth rate of 5.9 per cent predicted between 2016 and 2020 across the UAE.
\nRichard Marshall, a senior infrastructure analyst at BMI Research, said that there are US$103 billion worth of UAE projects under construction, with $45bn of that in Abu Dhabi alone – more than any other emirate. The pipeline of projects due to come to market is just $62bn. Given that more than 70 per cent of the $103bn of live projects is due for completion in 2017, a potential slowdown in the sector awaits unless more tenders come to market.
\nMoreover, the biggest project in the pre-tender phase is phase two of the Dh40bn Etihad Rail project, which was suspended last month until a review for “the most appropriate options for the timing and delivery” of the project is undertaken. Tenders for the project were first floated in mid-2012, but no contracts were ever awarded. Etihad Rail last month announced a restructuring following cuts to the UAE federal budget, with Bloomberg reporting that about 30 per cent of its staff were being laid off.
\n“Etihad Rail has said that the temporary suspension is because of its efforts to ensure the optimum delivery and timing, although ensuring that the project is implemented in the most cost-efficient manner is likely the chief factor in the decision,” said Mr Marshall. “Other GCC markets have been slow to deliver on their sections of the planned network, which has lessened the pressure on the UAE to meet the 2018 deadline.”
\nOn Wednesday, the ratings agency Moody’s said that Abu Dhabi was facing an economic slowdown as a result of government cuts in response to lower oil revenues.Moody’s senior vice president Steven Hess said that a prolonged period of low oil prices could gradually erode the emirate’s fiscal buffers if it did not maintain prudent budgeting, but that it has enough reserves to be able to finance fiscal deficits for five to ten years if it liquidated some of its assets.
\n“Overall, the [emirate’s] considerable foreign assets should mitigate the negative consequences of oil price volatility on Abu Dhabi’s fiscal and external accounts,” said Mr Hess.mfahy@thenational.aeFollow The National’s Business section on Twitter
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\nSource : thenational.ae
\nRead more…Contractors face slowdown in Abu Dhabi unless new projects come to market<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Abu Dhabi’s construction sector is set to outperform the emirate’s wider economy this year,...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-5306","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-1nA","jetpack-related-posts":[{"id":9998,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/dubais-expo-2020-infrastructure-spending-to-boost-uae-construction-sector\/","url_meta":{"origin":5306,"position":0},"title":"Dubai's Expo 2020 infrastructure spending to boost UAE construction sector","date":"April 5, 2016","format":false,"excerpt":"\r \r The UAE's construction market remains on course to grow at a faster pace than its wider economy, fuelled by infrastructure spending in Dubai, according to one analyst.BMI Research is forecasting growth of 6.6 per cent for the UAE's construction market in 2016, considerably ahead of the IMF's forecast\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":995,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-to-expect-from-the-abu-dhabi-property-market-in-2016\/","url_meta":{"origin":5306,"position":1},"title":"What to expect from the Abu Dhabi property market in 2016","date":"January 8, 2016","format":false,"excerpt":"\r \r The Abu Dhabi real estate sector was something of Dr Jekyll and Mr Hyde last year. Sales prices have been flat since the last quarter of 2014, but leasing failed to read the script and was up by as much as 7 per cent in some areas last\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":4146,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/rents-fall-in-some-of-abu-dhabis-high-end-properties\/","url_meta":{"origin":5306,"position":2},"title":"Rents fall in some of Abu Dhabi's high-end properties","date":"February 9, 2016","format":false,"excerpt":"\r \r Some upmarket Abu Dhabi landlords are starting to offer tenants small rent reductions as the low price of oil prompts the capital's housing market to soften. Overall average housing rents in Abu Dhabi fell by 1 per cent during the three months to the end of December 2015,\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":30739,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/bloom-eager-to-start-work-in-abu-dhabis-madinat-zayed-business-district\/","url_meta":{"origin":5306,"position":3},"title":"Bloom eager to start work in Abu Dhabi's Madinat Zayed business district","date":"October 19, 2016","format":false,"excerpt":"\r Bloom Holding hopes to be the first developer to start work in Abu Dhabi's long-awaited new central business district after the Executive Council awarded a Dh1 billion infrastructure package for the project.The Abu Dhabi private developer said on Wednesday that it plans to build 2,000 flats renting out for\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":59258,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/bloom-expects-boost-to-luxury\/","url_meta":{"origin":5306,"position":4},"title":"Bloom expects boost to luxury","date":"June 29, 2017","format":false,"excerpt":"\r The Abu Dhabi developer Bloom Holding does not expect the capital's luxury housing sector to start picking up until the end of next year.Sameh Muhtadi, the chief executive of Bloom, the private developer currently responsible for a clutch of ambitious projects in Abu Dhabi and Dubai, thinks that the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":47763,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/abu-dhabi-buildings-set-for-efficient-retrofits\/","url_meta":{"origin":5306,"position":5},"title":"Abu Dhabi buildings set for efficient retrofits","date":"March 13, 2017","format":false,"excerpt":"\r Abu Dhabi will begin tendering projects to help reduce energy and water consumption at up to 3,000 non-residential buildings throughout the emirate over the next five years. Under its Tarsheed programme, the Abu Dhabi Water and Electricity Authority (Adwea), with the emirate's Department of Economic Development (DED) and the\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/5306"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=5306"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/5306\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=5306"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=5306"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=5306"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}