COVID-19 will continue to impact construction sector in 2021: UAE's Fujairah Cement

Company posts net loss of $1.2mln for first quarter

  
Investors look at stock exchange information at the Dubai Financial Market December 14, 2009. Image for illustrative purpose.

Investors look at stock exchange information at the Dubai Financial Market December 14, 2009. Image for illustrative purpose.

REUTERS/Mosab Omar

The construction sector is expected to continue experiencing the impact of the coronavirus pandemic, which continues to spread globally, UAE-listed Fujairah Cement Industries said on Monday. 

The company reported a net loss of 4.6 million dirhams ($1.2 million) for the first quarter of 2021 on the back of lower revenues, which fell 12 percent to 126 million dirhams compared to a year earlier. 

“[The] impact of COVID-19 will continue to affect the growth rate of construction and development sector and the company during the year,” Fujairah Cement said in a bourse filing to the Abu Dhabi Securities Exchange (ADX). 

The company did not divulge any further details on how the pandemic has impacted its performance or the construction industry in general, although other analysts have said that the situation could improve this year. 

During 2020, construction output in the country was estimated to have contracted by 4.8 percent, but it is expected to rebound to 3.1 percent this year, according to a report posted by Research and Markets. 

The UAE Central Bank has said that the country’s non-oil sectors improved further during the fourth quarter of 2020 after COVID-19 restrictions eased and travel resumed. The UAE has also one of the highest vaccination rates in the world and is gearing up to host the World Expo in October. 

(Writing by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

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© ZAWYA 2021

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