This is marketing research on the construction - Middle East (UAE) industry and can include information on the background, market structure, definitions, competitors, trends and developments of real estate in the UAE and is related to other topics such as building, real estate, engineering and infrastructure.

Construction: Middle East (United Arab Emirates)

Table of Contents

1 Market Overview 
2 The UAE’s Construction Sector 
3 Industry Forecast Scenario 
4 Key Projects 
5 Conclusion 
6 Sources

The construction industry in the UAE is witnessing massive activity in the form of investments from private, public and government-based organizations. Major projects are being undertaken in areas related to airport and infrastructure development. Growth in tourism has led a large number of real estate developers, both local and foreign, investing in hotels, resorts and commercial projects.

The major ongoing projects in UAE are the development of the metro rail system, Burj Dubai, the man-made Palm Islands, Saadiyat island and the Al-Raha beach development.

The construction industry contributed about 7.05% in 2006 to the UAE’s GDP and was valued at US$11.10 billion in 2006. The growth rate of the construction sector is expected to be 6.8% on average for 2007-2010. However, the industry faces certain risks despite the upswing in business activity. One of the primary risks is the dependence on an immigrant workforce, which could create a labor shortage in the future. Lower labor wages are also an area of concern, as they can lead to labor unrest and affect the availability of labor for construction projects.

Market Overview

The UAE has an open economy with a high per-capita income and a sizable annual trade surplus. Its wealth is based on oil and gas output (about 33% of GDP), and the fortunes of the economy fluctuate with the prices of those commodities. Since 1973, the UAE has undergone a profound transformation leading to a modern state with a high standard of living.

The UAE has one of the most buoyant and dynamic construction industries in the world. Construction is the third largest sector of the economy, after oil and trade. A recent government report outlined that over 1,800 projects, worth around US$27 billion, are currently being carried on in the Gulf region. A succession of multi-billion-dollar projects has transformed Dubai and Abu Dhabi into modern and well-serviced centers of corporate activity.

The UAE’s Construction Sector

The construction sector has been a primary beneficiary of the oil boom and surge in investment. The number of new and ongoing large-scale projects leads the sector to see robust growth for several years to come. Many of the new projects are in the services sector, including the expansion and refurbishment of the country’s airports and the construction of new hotels and commercial buildings.

The three main areas of construction activity in the UAE are Abu Dhabi, Dubai and Ras Al Khaimah, all of which have distinct infrastructure spending programs. The Abu Dhabi construction market is one of the most dynamic markets in the region, with clear indications of continued growth. Some of the mega infrastructure projects for Abu Dhabi are:

• Saadiyat Island – US$27 billion
• The Al Raha Beach Development – US$14.68 billion
• Shams Abu Dhabi project – US$6.8 billion
• The Abu Dhabi Airport Expansion – US$6.77 billion
• The Mohammed Bin Zayed city – US$1.36 billion
• The newly announced port and industrial zone at Taweelah – US$2.17 billion
• Some of the mega infrastructure projects for Dubai are:
• The Waterfront Project –US$50 billion
• Dubai Marina –US$10 billion
• The Burj Dubai Development – US$20 billion
• Dubailand – US$5 billion
• International City – US$2.5 billion
• Dubai Healthcare City –US$1.8 billion
• Bawadi –US$54.4 billion

Industry Forecast Scenario

                                           2004   2005   2006e   2007f   2008f   2009f   2010f   2011f

Construction Industry value, US$ bn         8.22   9.34   11.10   12.83   14.60   16.33   17.96   19.74
Construction Industry, real growth, %y-o-y 15.00   7.93    8.01    8.48    7.38    6.56    5.74    5.67
Construction Industry, %of GDP              7.81   7.07    7.05    7.04    7.13    7.27    7.35    7.37
Total capital investment US$bn             22.12  29.70   39.21   45.29   51.55   57.68   63.43   69.71
Total capital investment,% of GDP          21.02  22.47   24.90   24.84   25.17   25.66   25.97   26.01
Capital investment per capita, US$         5,121  6,600   8,113   8,729   9,257   9,656   9,893  10,128
Real capital investment growth, %y-o-y     22.12  27.48   20.00    8.48    7.38    6.56    5.74    5.67
Government capital investment, US$bn        4.14   5.30    6.01    6.17    6.32    5.83    6.03    6.28
Government capital investment,% of total   15.80  15.91   16.41   16.04   16.12   16.19   16.12   16.14

e/f=BME estimate/forecast(bold), Source: ILO,UNCTAD, Central Bank of UAE

Key Projects

Transport

Airport Construction And Related Works:

Dubai will invest around US$81.7 billion in the aviation sector between 2006 and 2016. The investment will include the expansion work at Dubai International Airport (DIA) and the development of the Dubai World Central (DWC).

In February 2007, the master plan for the Middle East’s largest executive jet centre was released. The centre is to be built adjacent to the Dubai World Central International Airport (DWCIA) at an estimated cost of US$33 billion.

The expansion work at the DIA to build Terminal 3 and Concourses 2 and 3 is underway. The estimated cost of the project is around US$4.08 billion. The terminals are specifically designed to be able to accommodate Airbus A380s. Once the project is completed, in 2007,Terminal 3 is to have a multi-level underground structure, first-class lounges and dedicated counters, restaurants and 180 check-in counters.

Dubai World Central International Airport is a new airport under construction near Jebel Ali. It will be in be the main part of Dubai World Central - a planned residential, commercial and logistics complex.The airport is planned to have six 4500m parallel runways. When fully built-out it will be capable of handling 120 million passengers and 12 million tons of cargo annually.

The airport will complement Dubai International Airport. The airport will be surrounded by a large logistics hub, an ultra-luxurious golf resort (with suburban housing interwoven between greens and fairways), an expansive trade and exhibition facility (three million square meters of exhibition space-would become the world’s largest single exhibition site/location/address/destination),a massive commercial district, and a spacious residential/housing district.

Estimated at US$82 billion the construction has already begun on the first runway, which is scheduled to open in June 2008.The project is expected to be fully built and operational by 2020. Dar Al Handasah, is the design consultant for Phase one of this project, which includes the runway and the terminal building. Arabtec/Max Bogl joint venture will carry out structural work at the passenger terminal and the air traffic control tower at the Dubai World Central.

Dubai World Central will be a new city where eventually some 750,000 people will live and work. In an effort to accommodate its burgeoning fleet of aircraft, the UAE-based Emirates Airlines is investing US$353 million in a civil aviation engineering facility north of DIA. The centre will cater for the airline’s 74-strong fleet. Once completed it will be one of the world’s largest civil aviation maintenance facilities, with eight hangars.

Abu Dhabi Airports Company (ADAC) has lined up US$8.16 billion redevelopment program for the Abu Dhabi International Airport. As part of this program, ADAC plans to build a new air traffic control complex (ATCC) at the airport. The ATCC is to be positioned midway between the two runways and will be designed to include a five-storey technical and support building integrated with a 110-m high visual control tower.

Construction of an interim passenger terminal for national carrier Etihad Airways began in August 2006.The new terminal will have a built-up area of 50,000m2 and will be connected to the existing main terminal structure. It will also include passenger and baggage handling areas and office and maintenance areas.

Road Networks

In October 2006, the UAE’s Aldar Properties awarded a US$18.5 million contract to Abu Dhabi General Transport Company (GTC) for the construction of the road network at the Al Raha Gardens, and the surrounding areas. The GTC will undertake the construction of an eight kilometer, three-lane, dual carriageway network to form the main collector/distributor road for the development, and links to Khalifa City A.

Dubai’s Road and Transport Authority (RTA) have announced a plan for upgrading pedestrian facilities on Dubai roads at a total cost of US$19 million. RTA also has undertaken two major road projects worth US$188 million for the construction of Jumeirah Lake Towers Interchange across the existing Marina.

Dubai Metro:

The Dubai Metro will be a driverless, fully automated metro network under construction in Dubai. The network will have two third rail collection system powered lines that will both run underground in the city center and on elevated viaducts. elsewhere on double tracks. The first phase of the network is being built by Dubai Rapid Link (DURL), a Japanese led consortium headed by Mitsubishi while the driverless system will be designed and implemented by Thales Rail Signalling Solutions. The Dubai Metro will be operated by the Dubai Road and Transport Authority (RTA). The Dubai Metro system will be the longest fully automated rail system in the world. Completion of the first section of the system is projected for 2009. In July 2005 a design and build Contract was awarded to a consortium known as Dubai Rail Link (DURL) that is made up of Japanese companies including Mitsubishi Heavy Industries, Mitsubishi Corporation, Obayashi Corporation, Kajima Corporation and Yapi Merkezi of Turkey.

The first phase worth US$4.2 billion covering 35-kilometers of the proposed network, including the Red Line between Salahuddin Road and the American University of Dubai and the Green Line from the Dubai International Airport to Rashidiya Bus Station, is to be completed by May 2009. Extensions to both routes are included in the second phase, which is now expected to be functional by 2010. In May 2007, the Purple Line was announced a fast track to run between Dubai International Airport and Jebel Ali International Airport.

Construction of Hotels, Resorts and Commercial Properties

The Palm Islands:

The Palm islands in Dubai are the three largest artificial islands in the world. They are being constructed by Nakheel Properties, a property developer, in Dubai. The islands are The Palm Jumeirah, The Palm Jebel Ali and The Palm Deira. Between the three islands there will be over 100 luxury hotels, exclusive residential beach side villas and apartments, marinas,water theme parks, restaurants, shopping malls, sports facilities and health spas.

Palm Jumeirah:

Residents have started moving into their Palm Jumeirah homes since January 2007. The move will signal the end of phase one of construction, which includes approximatley 1,400 villas on 11 of the fronds of the island and roughly 2,500 shoreline apartments in 20 buildings on the east side of the trunk.

According to Nakheel Property officials, eight of the 32 hotels on the Palm Jumeirah have begun construction, including the Taj Exotica Resort and Spa, which is planned for completition in late 2008 or early 2009. The first phase of Atlantis is scheduled to be completed by December 2008. The finished resort will include the largest theme park in the UAE, one of the world's largest artificial marine habitats, a conference wing and over 1,500 hotel rooms. The "Golden Mile", the strip of land located along the center of the trunk overlooking the canal, is set for completion in the first quarter of 2008. Construction has also begun on the Palm Monorail, which will take three years to complete and will serve as a transit system between the Gateway Station at the trunk of The Palm Jumeirah and the Atlantis Station on the crescent.

Palm Jebel Ali:

The Palm, Jebel Ali began construction in October 2002 and is expected to be completed in mid 2008. Once it has been completed it will be encircled by the Dubai Waterfront project. The project, which will be 50 percent larger than the Palm Jumeriah, will include six marinas, a water theme park, sea village, homes built on stilts above the water, and boardwalks that circle the fronds of the palm.

Palm Diera:

The Palm Deira was announced for development on October 2004 and completion is expected in 2015, when it will become the largest of the three Palm Islands with 41 fronds. It will consist of residential property, marinas, shopping malls, sports facilities, and clubs. The residential area will be located on the fronds and will contain 8,000 two-story town houses in three distinct styles Premier Villas, Grand Villas and Vista Town Homes.

The World:

The World is a man-made archipelago of 300 islands in the shape of a world map currently being built off the coast of Dubai. The only means of transport between the islands will be by boat and helicopter. Prices for the islands will range from US$15 million to US$45 million. Islands will be sold to individuals who can create their own environment on their islands or to hotel chains wanting to establish their own resorts.

Dubai Waterfront:

The Dubai Waterfront is proposed to become the largest waterfront and largest man-made development in the world. The project is a conglomeration of canals and artificial islands. It will consist of a series of zones with mixed use including commercial, residential, resort, and amenity areas. Run by the Dubai Waterfront Company, the real estate developer is NakheelProperties, owning a 51% stake.

The project will feature hundreds of waterfront developments and planned communities. It will consist of 10 key areas including Madinat Al Arab. Madinat Al Arab will feature resorts, retail, commercial spaces, public spaces, a broad mix of residencies and an integrated transport system including light rail and a sophisticated road network. Other key zones include Al Ras Corniche, The Riviera,The Palm Boulevard, The Peninsula, Uptown, Downtown, Boulevard, and The Exchange. It will also feature 250 planned communities both on and offshore and is valued at US$50 billion.

Dubai Marina:

The marina is entirely man-made and has been developed by the real estate development firm Emaar Properties. The marina will contain over 200 high-rise buildings and some supertall skyscrapers, Dubai Marina Towers, The Torch Dubai Marina, Infinity Tower, The Princess Tower, Number One Dubai Marina, Marina Terrace, Le Reve and Horizon Tower to name a few and also include the 40 residential and hotel towers of the Jumeirah Beach Residence. Upon completion, it is claimed to be the world's largest man-made marina.

Dubai Fesitval City:

Named as a "city-within-a-city", Festival City is the Middle East's largest mixed-use development: all elements for work, living, and leisure to be contained within the project. Once completed Festival City will comprise of a series of residential communities, numerous hotels, malls, a golf course and other entertainment sites, and a full suite of public services, including schools.Developed by the Al Futtaim Group, the total development time estimated for completition is 12 years.

The Burj Dubai Tower:

The Burj Dubai is as supertall skyscraper currently under construction in the New Downtown of Dubai. Skidmore, Owings & Merrill LLP (SOM) is the lead architect, structural engineer and mechanical engineer of the Burj. Its final height is officially being kept a secret due to competition.

The US$20 billion Downtown Burj Dubai city is Emaar’s flagship project and is to be the centrepiece of a large-scale, mixed-use development that will include 30,000 homes, nine hotels such as the Burj Dubai Lake Hotel & Services Apartments, 2.5 hectares (6 acres) of parkland, at least 19 residential towers, the Dubai Mall, and the 12 hectare Burj Dubai Lake. Other components include The Old Town Island, Burj Views, Burj Dubai Boulevard, The Residences, The Lofts and Loft Towers, 8 Boulevard Walk, South Ridge, Burj Views and Burj Dubai Lake Hotel and Serviced Apartments.

Dubailand:

Dubailand part of Duabi Holding, is an entertainment complex under development in Dubai. Construction of Dubailand has been divided into four phases. Developed by Tatweer, the project is to include 45 mega projects and 200 sub projects. The six zones planned at Dubailand include attractions & experience world such as theme parks and water parks, retail and entertainment world which will have world trade park and factory outlets. The themed leisure and vacation world will house the desert kingdom and andalusian resort and spa. Desert safari, sand dune hotel and desert camps will be in eco-tourism world. The sports and outdoor world will have the Dubai sports city, plantation equestrian and polo club and Dubai Autodrome. The Dubai golf city, mall of arabia and the great dubai wheel will be in the Downtown zone. In May 2007, Tatweer announced the opening of the Universal Studios at Dubailand. Spread over 6.5 million square feet, this project is set to be completed in 2010.

Dubai HealthCare City:

The Dubai Healthcare City (DHCC) is one of the numerous specialised 'cities -within-a-city' in Dubai targeted at the healthcare and the pharmaceutical industries. Owned and developed by Dubai Holding, this US$1.8 billion development consists of a collection of medical teaching institutions, private hospitals and clinics, pharmaceutical offices and research centres, and spas and rehabilitation centres. It also includes some residential villas, apartments, and 5- star hotels surrounding an artificial lake, and is desgined to promote medical tourism. Overall, there are 17 hospitals planned for DHCC with a total of 780 beds to be available by the end of 2008.

The teaching hospital and post-graduate medical training centre is affiliated with Harvard Medical School. The academic centre will have a Life Sciences research centre, a 300-seat auditorium, and the Al Maktoum Medical Library, which promises to have the most comprehensive medical reference collection in the country. The University Teaching Hospital is expected to be ready by the end of 2008. A nursing school will accomodate 200 students, offering basic and masters level training. DHCC is currently partially functional, with a staff of 760+, including 130+ physicians. Phase I&II are under onstruction, and it is expected that it will be fully operational by 2010.

The hospitals annouced include Harvard Medical School University Hospital, Mayo Clinic Middle East, Dr. Sulaiman Al Habib Medical Center, The City Hospital (Welcare, Varkey Group,The Creek Hospital Dubai (Welcare, Varkey Group), American Academy of Cosmetic Surgery Hospital, American University of Beirut Medical Centre, Eleva Women's Hospital and London Great Ormonde Street Hospital Dubai Office. Pharmaceutical companies like Astra, Zeneca, Novo Nordisk, Johnson & Johnson and Wyeth Pharmaceuticals have established offices/labs in DHCC

Bawadi:

Bawadi is a project announced by the Government of the United Arab Emirates and other investors on the 1st of May 2006. Its aim is to double the amount of rooms in the city of Dubai by 2016 to 29,000 rooms. The investment in the mega hospitality and leisure project is to be doubled to US$54.4 billion.In May, 2007 a 40m sqft retail zone was announced for the project. This increase in investment will see the number of hotels increase from 31 to 51, with the total number of rooms jumping from 29,000 to 60,000; the decision to expand Bawadi is in line with Dubai’s Strategic Plan, unveiled earlier this year.

Business Bay:

Business Bay is central business district under construction in Downtown Dubai. The project features numerous skyscrapers located in an area where the Dubai Creek has been dredged and extended. The Business Bay will have more than 230 buildings attracting commercial and residential developments. Business Bay is a development of Dubai Properties.

Al Raha:

Al Raha Beach Development is a beachfront project being built in Abu Dhabi, along the Abu Dhabi-Dubai highway and will be located opposite to Al Raha Gardens. The US$ 14.7 billion development is being built on reclaimed land at Al Raha Beach complex occupying an area of 6.8 million square meters.

Al Raha Beach Development will be a new city district that will serve as the new gateway to Abu Dhabi city and accommodate 120,000 residents with its arrangement of 60-storey towers to low-rise developments. It is being built in eight residential and commercial districts, each with their own distinct personality and appeal. The districts are Khor Al Raha, Al Bandar, Al Seef, Al Wateed, Al Rumaila, Al Lissaily, Al Nakhel, and Al Razeen. The Al Raha Beach Project Sub developments include Dolphin Towers, will contain 400 one, two, and three bedroom condominiums as well as 10 townhouses located at the east end of the development and is being built by Damac Properties, to be completed by the end of 2008.

Saadiyat Island:

Saadiyat Island is an island 500 meters of the coast of Abu Dhabi island. A US$ 27 billion mixed commercial, residential, and leisure project is currently under construction on the island, expected to be completed in 2018. According to government officials, Saadiyat Island is expected to become Abu Dhabi’s cultural centre . The Saadiyat Island will have the Al Marina which will have berthing for over 1000 boats, boutique hotels luxury apartments, mediatheque and oceanarium. The cultural district will house the maritime museum, national museum, modern art museum, classical museum, luxury town homes and apartments.

Waterside living and Equestrian centre will be housed in the Saadiyat Park while the Saadiyat Beach will offer 9 kilometers of natural beaches, five-star hotels and resorts, beach clubs and and championship golf course with luxury residential properties. The South Beach will be designed to be a family resort with dynamic beach lifestyle, boardwalks with restaurants and cafes. The Wetlands will offer championship golf course with luxury residential, boutique eco hotels, waterside living and eco centre. A major development initiative from the Tourism Development & Investment Company (TDIC), Saadiyat Island will also have Guggenheim Abu Dhabi Museum and a performing arts center along the grand scale of the Sydney Opera House.

Al Reem Island:

Al Reem Island is a residential, commercial and business project on Al Reem Isle, a natural island off the coast of Abu Dhabi island. Al Reem Island will cover an area of 633 hectares (68 million square feet) and is being built by three developers-Tamouh Investments (60%), Sorouh (20%) and Al Reem Investments (20%).

The development will be overseen by an independent third-party facilities management company known as Bayt Al Khidma, who will ensure all three Reem Island developers meet high standards of construction. The island is estimated to accommodate 280,000 residents and will include important amenities like schools, medical clinics, shopping malls, restaurants, a 27-hole golf course, hotels, resorts, spas, gardens, and beaches. The island includes the Pearl of the Emirates, whose first phase is estimated at US$ 545 million and includes 15 towers and a 5-star hotel, Al Shams Abu Dhabi, which is a residential development by Sorouh covering 14.2 million square feet (1.32 million square meters) to be completed by 2011 and Najmat Abu Dhabi (The Star of Abu Dhabi)-which is a US$ 8 billion urban waterside community development by Al Reem Investments is to be completed by 2012.

Yas Island:

Scheduled to commence construction in two phases during 2007, Yas Island occupies a total land area of 2,500 hectares, of which 1,700 hectares will be claimed for development. The Island will feature attractions such as a world-class motor sports racetrack, signature hotels, the Ferrari theme park, water park, and the Abu Dhabi destination retail development of 300,000 sq m retail area, links and parkland golf courses, lagoon hotels, marinas, polo clubs, apartments, villas and numerous food & beverage outlets that will create a unique international tourist destination.

Yas Island has been announced as the venue for a Formula 1 race in 2009, the event to be named as the Abu Dhabi Grand Prix. It will be held on a newly built circuit.Yas Island will have the second Formula 1 track in the Middle East.

Industrial Construction

The UAE based Mubalada Development and Dubai Aluminium have plans jointly to build the largest single-site aluminium smelter in the world. Abu Dhabi Ports recently allocated a 6km2 plot of land adjacent to the Al Taweelah power stations complex in the north east of the heavy industry zone of Khalifa Port and Industrial Zone. The first phase of the project is scheduled to become operational in 2010. After completion of all phases, the manufacturing base is expected to have an installed production capacity of up to 1.4mn tonnes per annum. The cost to complete the undertaking has been estimated at US$6 billion. Abu Dhabi-based Al-Nasser Industrial Enterprises is planning to invest US$300mn in the construction of a steel complex in the capital’s Mussafah industrial city. The plant will have capacity of 450,000 tonnes per annum and comprise a direct reduction iron (DRI) plant and a steel billet-manufacturing unit. The plant is expected to be operational in 2007. Mexico’s HYL and Italy’s Danieli & Company are the technology and equipment suppliers. India’s MN Dastur & Company is the consultant.

Projects in the Northern Emirates

The construction boom in Dubai and the capital Abu Dhabi has triggered development in the Northern Emirates too with top property developers joining the bandwagon with a string of projects. The Northern Emirates, particularly Ajman and Ras Al Khaimah, have come out with a well-thought-out strategy – reducing dependence on traditional income-generating methods and making best use of the spillover effect that booming economies such as that of Dubai create in their rush to prosperity.

One such effect is the population shift from Dubai to Sharjah, Ajman, Umm Al Quwain and even Ras Al Khaimah as a result of skyrocketing rents. The residential market in the Northern Emirates is thus booming.

Umm Al Quwain

Umm Al Quwain became the leader in property development among the Northern Emirates this year with the formal launch of the US$9 billion Al Salam City in March. The three-phased project, the first of which would complete in the next three years, comprises an integrated residential and commercial area, consisting of a number of residential districts. The Al Salam City by Tameer Holdings has been designed to house up to half a million residents within an area that will includes parks, playgrounds, entertainment centers, stables and cable car facilities.

Ajman

Ajman has also announced two major projects – Emirates City and Al Ameera Village. The Emirates City consists of around 72 residential and commercial properties and will encompass picturesque lakes and green parks, a shopping district, mosques, five-star hotels, educational and medical facilities. The Al Ameera Village would include a mall, several sports centres, mosques, parks and other recreational and shopping facilities. Situated on the Emirates Ring Road and at a short distance from Dubai, the project will consist of 50 traditionally designed residential buildings, hotel apartments, commercial areas and a shopping mall.

Ras Al Khaimah

Ras Al Khaimah is also rubbing shoulders with other emirates of the UAE. It announced several major projects such as the US$2.7 billion Mina Al Arab and the La Hoya Bay development. While Mina Al Arab is being developed by RAK Properties, the developer of La Hoya Bay in the emirate’s Marjan Island is Khoie Properties The mega tourist and residential community development Mina Al Arab, will feature several themed resort hotels and two eco-hotels along the beautiful natural beaches of the islands. These hotels will provide an estimated 3,500 rooms for tourists and visitors of the emirate, besides a cluster of 3,500 residential units, mainly hotel units and standard apartments – to cater for the regional and international visitors. While the first phase is to be completed by 2008, the entire project will be complete by 2011.

Saudi-based Wesam Al Madani Group is developing yet another project – Al Qasr Island – within Al Hamra Village in Ras Al Khaimah. This will have a five-star hotel (Al Qasr Island Hotel) and a castle, consisting of two 12-storey buildings, with 1,006 apartments for sale. The project is scheduled to be completed by 2008.

In August, an agreement was signed between Tasees, a development and investment company in the UAE, and Al Aqariya Media Group to promote the Ras Al Khaimah Airport Free Zonebased Airport Business Park. The business park consists of 10 commercial towers, each one comprising 10 floors, in addition to eight 11-storey residential towers, two tower blocks comprising furnished apartments, a luxury hotel and a cargo village. The park will also host a building for Dnata Travels on a total land area of 1.6 million sq ft.

Sharjah

A number of major projects were launched in the emirate of Sharjah, including the US$4.9 billion Nujoom Islands and the Emirates Industrial City. While the Nujoom Islands were designed to house 40,000 residents in several residential districts, the Emirates Industrial City is Sharjah’s largest industrial development project. A handful of smaller projects such as Sama Residence and Al Boom Tower – costing US$30 million each – were also announced this year. Sama Residence – comprising two 15-storey buildings and 180 apartments, with 24-hour security, a two-level car park and retail shops – is being developed by Shamsi and Shamsi Holdings, while the developer of Al Boom Tower – which will include 218 apartments, six shops and a 264-slot parking area, as well as a helipad on top of the building

Fujairah

Fujairah, located on the beachfront strip, is set to see up to nine hotels opening in the next five years, with Japan’s JAL already counting down to a 2007 opening. Another major hotel group Rotana is preparing to open its first hotel in Fujairah shortly. The Fujairah Rotana Resort and Spa, will have 144 chalets, eight executive suites, 14 Junior suites and 84 deluxe rooms.

Conclusion

The UAE has gained a growing reputation as an international tourism and business hub. Dubai hotels enjoyed occupancy levels over 90% in 2006. This could lead to more foreign construction companies focusing on this area.

The potential of UAE's construction sector is being recognized globally. All major projects require international construction project management firms to supervise work execution. US companies enjoy an excellent reputation for such services. There are no regulatory/demand issues affecting the market for Architecture, Construction and Engineering services. With low barriers to entry for foreign contractors, the construction sector in the UAE is characterized by good opportunities for international players. International joint ventures could work for the benefit of both the local and international firms.

Sources

U.S. Department of Commerce