By Issac John www.khaleejtimes.com
In the run-up to the Expo 2020, the Dubai construction sector is poised to outperform the overall UAE market, although growth across the emirates is expected to remain healthy at 6.6 per cent despite low oil prices, market watchers said.
Government investment will be robust in infrastructure sectors, while the biggest risk stems from private investment in Abu Dhabi, which will be adversely affected by lower oil prices, according to the latest Research & Markets report.
“While lower oil prices pose little threat to the UAE’s construction industry outlook overall, we forecast real growth in 2016 of 6.6 per cent in real terms year on year,” the report said.
Abu Dhabi has the largest infrastructure investment programme in the UAE, but its market is the most exposed to the fall in oil prices, given its economy’s reliance on the sector.
“Dubai and the Northern Emirates’ fiscal position, which relies much less on oil revenue, will be buoyed by our expectation for growth in the non-hydrocarbons sectors of the economy,” the report observed. More info