New Project Contracts Revive the Market in Dubai

Dubai - MENA Herald: The real estate market in Dubai is improving according to the CEO of Al Ruwad Real Estate, Ismail Al Hammadi. From the worth of construction contracts that are implemented on the ground, the amount of opportunities for construction companies, completion of projects covering various sectors in the Emirate in the real estate development and construction sectors such as education, industry, housing, hospitality, retail and other sectors that depend upon the government to build a sustainable economy are few indicators.
Al Hammadi said that the spending value on contracts and construction projects awarded by Dubai is increasing each year, the index is a matter of investor optimism that reinforces their confidence in the market which will reflect this positive performance. Last year’s spending totaled around 77 billion dirhams, per the report of MEED . Comparing it with over from 55 billion dirhams in 2015. Per the same report, it is expected that approximately the size of this year's spending ceiling of 99 billion dirhams out of 156 billion dirhams as the size of the total construction contracts expected in the UAE per a study of the "PNC Network" company.
Large-scale projects
Al Hammadi pointed out that there are four major projects coming to Dubai that are playing the key roles in raising the spending value of construction contracts. In the forefront is the completion of the final two phases of the infrastructure for the site Expo 2020. This includes about 47 real estate contracts with the financial value of about 11 billion dirhams. Unveiled earlier this year with an area of ​​20 million square feet is the Dubai Harbor project. It is expected to become the Middle East’s largest marina when completed. Also, new investors are very interested in Dubai South, a fully integrated ecosystem suited to every business and industry as well as Deira Islands that is 21 km. of beaches, beachfront hotel resorts, residential communities, a shopping mall, a waterfront night market and a large Amphitheatre. These 4 major projects are greatly contributing positively to the Region.
Al Hammadi added that the projects market in Dubai will remain optimistic due to continuous spending and support granted by the government to companies and individuals. This is characterized by Dubai flexibly laws and regulations that serve the construction projects market. The construction industry and real estate industry are the main portion of the economic development plan adopted by the government to materialize its vision.
Investments
Despite global economic pressures related to oil prices and currency exchange, retail and hospitality industries are the most attractive sectors for foreign direct investment to the Emirate. Al Hammadi pointed out that foreign investments flowing towards the Emirate of Dubai play active roles in the activity of market performance. They give a strong impetus to the implementation of projects in various sectors of the economy that affect especially those of residential projects.