The UAE construction sector is set to experience a growth of 6 to 10 per cent next year despite challenges such as extended deadlines and budget problems.

More than half of the UAE industry leaders surveyed for KPMG’s Global Construction Survey said the country’s construction sector remains resilient and would grow amid rising investment in technology innovation.

However, professionals remain divided over whether companies in the UAE are delivering projects on time and within budget, with time (44 per cent) and cost overruns (44 per cent) ranking as the top hurdles facing capital construction projects, according to the survey conducted by the global advisory and accounting firm.

However, KPMG also noted that the challenges of deadlines and budgets are being addressed as the industry adopts methodologies to link governance to project outcomes. UAE industry leaders recognize that well-run projects with good management practices and appropriate controls are more likely to achieve broad measures of success in the future, it said.

The UAE is already seeing technological disruption in the sector through 3D printing and automation. According to KPMG’s global findings, the use of robots in the field, unmanned aerial vehicles and intelligent tools and equipment will continue to automate many of the less complex and high-risk tasks at the job site, leading to a leaner, more specialized and digitally enabled workforce.

More than 80 percent of the leaders surveyed in the UAE felt that digital modular fabrication would be widely implemented within the next 10 years, followed by intelligent construction equipment (56 per cent) and robots (25 per cent), according to the report. The use of data analytics and predictive modeling will also play an important role in the next five years, it added.

Sidharth Mehta, Partner, Head of Building, Construction & Real Estate, KPMG Lower Gulf, is optimistic about the growth and considers the construction sector the lifeblood of the UAE economy.

“It is very encouraging to see that the industry is expecting single- to double-digit growth this year. As the pace of disruption accelerates, leaders will have to consider implementing a three-pronged approach to rationalize governance and controls, optimize human performance and innovate with technology to become more future-ready,” said Mehta.

A strong workforce as well as technological investment is required for the sustainable growth of the UAE’s construction sector, according to the KPMG report, which further noted that people form the backbone of the industry and leaders need to invest in human capital to drive overall performance and ensure on-time project delivery.

(Writing by Syed Atique Hussain, editing by Seban Scaria)

(seban.scaria@refinitiv.com)

Our Standards: The Thomson Reuters Trust Principles

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2019