OPPORTUNITIES AND CHALLENGES OF THEUAE CONSTRUCTION INDUSTRY

When it comes to construction, the UAE leads the way. The UAE's construction industry is valued at US$ 221 billion (about AED 811.73 billion) - the highest in the region. The construction boom has caused a shortage of both manpower and materials, leading to rise in input prices not only in UAE but in the entire region. The prices of materials have reportedly increased more than manpower. Consequently, there has been an escalation in project costs, which have increased by 10-20 per cent since last three years. This paper examines the opportunities and challenges faced by the developers, consultants, contractors and suppliers due to the construction boom at UAE for the last five years. The paper summarizes that inspite of challenges faced, UAE expects the construction and real estate sectors to remain upbeat for the next ten years.