Dubai's per capita construction spending is one of the highest in the world, according to market estimates.
The value of ongoing projects in the UAE stands at $223.79 billion (Dh821.3 billion), according to the latest statistics released by Meed Projects, a Dubai-based online project tracker.
This translates into $51,804 (Dh190,123) per capita project spending. The UAE's population was 4.32 million at end-2004.
As the majority of the UAE's projects are concentrated in Dubai, per capita construction spending in Dubai alone may be at least three times higher than that of the entire UAE.
"I don't know if Dubai has the highest per capita construction spending, but it is definitely one of the highest in the world," said Bernard Walsh, managing director of dmg World Media, organisers of the Big 5 Show, the largest construction and building materials exhibition in the Middle East.
The show begins tomorrow at the Dubai World Trade Centre and will run until Sunday.
"Tourism, real estate and construction are driving the local economy a fact reflected in the Big 5 Show which attracted 1,813 companies from 55 countries and is spread across 30,283 square metres of exhibition space."
Projects currently under execution in the GCC, Iran and Iraq have exceeded $697 billion (Dh2.55 trillion), according to Meed Projects. The UAE accounts for about 32 per cent, or $223.79 billion (Dh821.3 billion) of this.
However, the UAE accounts for $177 billion or more than 60 per cent of the GCC construction projects worth $294 billion.
"If one calculates the high construction spend compared to the population, Dubai definitely comes to mind as one of the top economies in terms of per capita spend," said Jonathan Berger, commercial director of the show.
"One of the other cities would be Shanghai. However, the population of Shanghai is much higher than that of Dubai, which makes Dubai one of the top economies.
"But I do not know if it's the city with the highest per capita construction spend."
High oil prices and rising population are some of the factors fuelling the construction sector's growth.
For every additional US dollar in the price of a barrel of oil, the income of the GCC states increases by $5 billion, Berger said.
Population, another major contributor to the Gulf's construction sector, is expected to rise from 35.71 million in 2005 to 53.62 million in 2025.
"Population growth will put additional pressure on the region's economies that will need to fund new housing facilities for new families," he said.
Gulf News
