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According to the Royal Institution of Chartered Surveyors (RICS) Global Construction Monitor Q1 2023 report, the UAE’s construction sector remains “resolutely optimistic” in 2023 and will continue throughout the year.
The top construction activity index (CAI) reported a net balance of +41, down from +49 reported in the previous quarter.
Workloads in the private residential sector contributed most to the overall positive picture (+51 net balance), while infrastructure workloads reported a net balance of +45. On the other hand, private non-residential projects recorded a reading of +29.
“Crucially, the industry as a whole continued to report ‘firmly positive’ readings on construction activity,” the report said.
The net balance of margins is expected to remain strong at +40, RICS said.
As with the global construction industry, some of the most prominent factors hampering activity are material costs, skills shortages, and general financial constraints.
Comments by UAE professionals point to concerns about overall resource demand in the region, with large infrastructure projects in neighboring countries drawing workers out of the country.
Still others worry about the heat and its prospect of longer construction times and higher costs in the summer.
“Overall, the UAE’s construction sector looks robust and continues to demonstrate resilience as it weathers the storm of economic and geopolitical instability hanging over the global economy,” the report states.
(Writing by P Deol; Editing by Anoop Menon)
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