United Arab Emirates Projects, H2 2020 with COVID-19 impact update - MEED Insights
NEW YORK, Oct. 21, 2020 /PRNewswire/ --
Read the full report: https://www.reportlinker.com/p05978028/?utm_source=PRN
Summary
It has been a difficult 12 months for the United Arab Emirates Projects, market. Previously viewed as a stable market relatively immune to the oil price, it posted a substantial fall in total project awards in 2019 to just over $31bn from $48bn the previous year.
The United Arab Emirates Projects, market has had a more difficult first half of 2020 than its neighbours with contract awards down more than a third on the same period last year. As with neighbouring markets Covid-19 has been a factor but it has masked the fact that the market was already in sharp decline thanks to oversupply in its real estate sector.
The issue is compounded by the federation's exposure to the global tourism shutdown and a decrease in aviation and retail spending. Despite a series of government announcements and initiatives to stimulate the economy, it is clear that it will be sometime before the market can return to its pre-2015 levels.
In the absence of a vibrant property sector, contractors and consultants will increasingly look to the government infrastructure sector as a source of new project opportunities. Water, power, road and other transport infrastructure will take on a greater significance as companies seek to win a smaller pool of new business opportunities.
Many project companies active in the federation have reacted by lowering margins in the face of increased competition or by focusing on other countries, particularly Saudi Arabia. Others have downsized to cut costs or left the market altogether.
In this challenging environment firms will have to be smart in order to prosper. Selecting the right clients, specialising in niche sectors, and introducing novel technologies are all tools companies can harness in order to stay ahead of the competition.
It is not all doom and gloom, however.Some sectors, specially water and renewable energy, are growing.
Oil and gas spending in Abu Dhabi is also forecast to increase over the coming year.
Likewise, the pipeline of Projects, in the United Arab Emirates sits at more than $670bn.Although there are undoubtable challenges in the short term, the long term prognosis is still relatively healthy.
Regardless of what happens, the United Arab Emirates market will remain one of the largest Projects, markets in the region.
Written by MEED, the Middle East market experts within the Group, "United Arab Emirates Projects, H2 2020", is the update to this year's H1 report. Focused on data, it is aimed at helping companies create strategies for targeting and growing the market.
Reasons to Buy
- Opportunities and challenges in the United Arab Emirates's Projects, market
- Analysis of the pipeline of planned Projects, and contract awards
- Key policies and drivers shaping the outlook for Projects, in the United Arab Emirates
- Political and economic background
- The barriers and challenges that may arise
- Sector-by-sector breakdown of future project plans
- Key drivers of Projects, in each sector
- The United Arab Emirates's most valuable key Projects, and major project sponsors
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