The United Arab Emirates is one of the fastest region which develop its growth in construction. All sectors depend on construction especially the performance. Over years, UAE still has Dubai construction challenge since they are projecting their success to the Capital more.
Establishing The Disciplines
UAE in the name of their federal authorities have established the disciplines in fiscal to protect several vulnerable sectors such as tourism and hospitality. Both sectors are the main source of UAE economic because they attract tourist, immigrants and investors especially in Dubai.
This discipline also regulates other sectors of construction such as real estate. Although it’s lagging about less than 5 percent, it influences the business ecosystem. This is more challenging cause it involves some issues from ownership, business traffic, and how much the investment in the future.
UAE’s government expected that the construction sector would grow more than 3 percent. They depend on the construction sector, especially infrastructure. Thus, the plans they had and had helped so far are the program such as Sheikh Zayed Housing and 2050 Energy Strategy.
Dubai Construction Challenge and Plan
Immigrants dominate the workforce in the UAE and become the face of construction challenge. Pot-pandemic COVID-19, most workers come back to their own countries and the resource decreases significantly. It obstructs the construction projects and they are postponed.
The postponement still continues due to lack of skill laborers in UAE. Management will never be easy especially for major projects. The recovery process is very slow but they make sure that everything will go smooth as long as it’s handled by experienced team.
Another Dubai construction challenge that they aren’t able to abandon is the price f raw material. The prices are increasing about 30 percent. The stabilization is happening post-pandemic gradually. The solution they have is reducing the profit margins as long as it’s done before the due date.
The last issue that they should face is project delay. Due to lack of high-skilled labor and expensive raw material, they delay the project. The operation of many sectors stops which harm the contractor from the cost and schedule. It also contributes to the global crisis, especially UAE in the world market.
Construction Recovery Post Pandemic
The United Arab Emirates keep encouraging the investment activities to continue some delayed UAE construction post COVID major projects. Government has designed the plan with 50 economic initiatives which will compete with other countries with the purpose winning the direct investments.
During pandemic, UAE has proved that they suceeeded with some major projects though they had to struggle with supply chain. Post-pandemic plan of the country is being active in mega construction projects. Therefore, they’ll be a country which is trusted by investors.
UAE will focus on industrial sectors by preparing some programs such as Dubai Tourism Strategy, the Sheikh Zayed Housing, and the Dubai Development Plan 2040. The main purposes of the programs are increasing the quality of public places for tourist and business in global scale.
Dubai construction challenge could be overcomed gradually post-pandemic. UAE has targeted that the country will be leading the construction in the gulf region. It increases the value, economic, and accessibility of UAE since the country planned to be the main destination for tourist and investors.