UAE accounts for 44% of the GCC construction market, industry leaders said at the event

Dubai, United Arab Emirates, April 21, 2013: The total construction market in the UAE at the end of 2012 stood at AED 375 billion, which was almost 44% of the GCC's combined construction market of AED 845 billion. The information was revealed at the recently held Customer Forum organized by Jafza for the companies in the Steel, Metal and Building Material Industry.

In his welcome note Ibrahim Mohammad Al Janahi, Deputy CEO of Jafza and Chief Commercial Officer of Economic Zones World said:

"Though the construction sector in the region was worst affected by the global financial crisis but it is perhaps the sector quickest to recover from the downturn. Now huge business opportunities are available in the region for the existing companies and the new investors in the sector. With the number of construction projects that have been announced in the region and the governments' continued focus on building economic infrastructure in general, we expect more and more opportunities to keep opening for the companies in the sector. Jafza, as the region's trade and logistics hub, is the best location for investors to set-up their base to serve the entire region most efficiently in terms of both connectivity and cost."

"935 leading companies in the sector, from across the world, have chosen Jafza as their base to serve the region. The sector accounts for 13% of Jafza's total strength of 6,940. These companies have together generated trade worth AED 18 billion. In terms of numbers the sector has grown at a compounded annual growth rate of 7 percent.

Andrew Leach, General Manager, Construction, in Tata Steel said:

"The total size of the construction sector market in the Gulf Cooperation Council countries (GCC) stands at AED 844 billion with the UAE accounting for 44% of this market at AED 375 billion. Saudi Arabia at AED 312 billion, Qatar at AED 77 billion, Kuwait at AED 37 billion, Bahrain and Oman at AED 22 billion each accounted for 37%, 9%, 4% and 3% each of the GCC construction market respectively. The GCC construction market is expected to grow at the rate of 7% per year through to 2017."

In his presentation pertaining to the construction market in the region, he said:

"Infrastructure development projects (water treatment, sewerage; communication; power generation & transmission; roads, bridges, highways, railways, ports, airports) at AED 354 billion account for 42%, commercial projects (hospitals, nursing homes, medical labs; administration buildings, banks, financial institutions, computer centres)  at AED 217 billion  account for 26%, residential projects at AED 221 billion account for 26% and industrial projects (electrical, food processing, petroleum refineries, chemical and other manufacturing plants) at AED 52 billion account for 6 %. The construction sector in the Middle East and Africa including the GCC is valued at AED 1.5 trillion, which provide good opportunities for construction companies particularly in light of continuously new projects being announced in the region.

Raed Siddiqui, Director, Age Group, said:

"We expect the construction sector in the GCC to continuously grow especially in the light of the announcement of a number of infrastructure projects in the UAE, Saudi Arabia, and Qatar. If the UAE's bid to bring World Expo 2020 to Dubai succeeds the sector will get massive boost. Industry experts expect the construction sector to grow over 20% next year if World Expo 2020 is held in Dubai."

The sector comprising steel, metal and construction material is led by building material division, which represents 54% of the total number of companies in the sector. The furniture and interior design companies account for 7% and iron, steel, and metals companies account for 39% of the total number of companies.

The forums provide an opportunity to Jafza management and Jafza companies to enter into a comprehensive dialogue to understand and address issues facing the industry and discuss best practices in these sectors globally, and respond to the industry challenges and upgrading businesses through the exchange of experiences and ideas.

The steel, metal and building material industry forum was attended by a number of leading companies from the steel, metal and construction materials sector in the free zone such as Tata Steel, Danube, Doka Gulf, Essar Steel, Naffco, Pan Emirates and MS Steel among others. Senior Jafza officials and representatives from Dubai Customs, Dubai Chamber, Trakhees and other partners of Jafza addressed customer issues and queries pertaining to their respective areas.

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About Jebel Ali Free Zone (Jafza)
Jebel Ali Free Zone (Jafza) is one of the world's leading free zones. Established in 1985, Jafza is today home to over 6,900 companies, including more than 120 of the Global Fortune 500 enterprises from across the world. It is a leading driver of the burgeoning UAE economy. Jafza is the region's most efficient logistics hub and the only one in the world located between a top container terminal (Jebel Ali Port) and a top international airport (Al Maktoum International Airport), enabling the best in multi-modal connectivity.

As the leading business hub of the Middle East, it focuses on long term customer relationships and fosters alliances with global investors by providing them world class infrastructure duly supported with quality driven value added services and incentives, enabling them to avail huge business opportunities in the region, in the most efficient way.

For further queries please contact Mr Var Prasad Rao (Corporate Editor) on +971-50-9400163.

© Press Release 2013