Real Estate & Construction
From The Report: Abu Dhabi 2016
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Real estate development in Abu Dhabi is dominated by large, mostly local government-backed companies, several of which are responsible for the master development of various emerging areas of the city including Yas Island, Al Maryah Island and Zayed Sports City. Meanwhile, the value of construction sector activity in Abu Dhabi increased to $24.9bn in 2014 from $23.3bn a year earlier. Sector activity also grew 3.3% in 2014 at constant prices over the previous year, up from growth of 0.6% in 2013. Transport infrastructure in particular is helping to drive activity in the sector, with a number of projects planned or under way for rail and urban transport infrastructure as well as the airport segment. This chapter contains an interview Mohamed Al Mubarak, CEO, Aldar.

Articles from this Chapter

Overview

A changing landscape: Sector growth continues to be driven by large-scale developments
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Real estate development in Abu Dhabi is dominated by large, mostly local government-backed companies, several of which are responsible for the master development of various emerging areas of the city. These developers include Aldar Properties, which has acted as the lead developer on Yas Island. Other major developers include Mubadala Real Estate and Infrastructure (MREI), Mubadala Development Company’s real estate investment arm, which is developing Al Maryah Island and Zayed Sports City, and…

Analysis

Much awaited: New sector regulations to bring clarity to a range of issues
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Following a drafting and consultation process, in June 2015 the Abu Dhabi government promulgated a new real estate law, which officially came into effect on January 1, 2016. The 90-article law contains a wide range of measures, chief among which is the creation of a real estate registry – though some industry figures say that more remains to be done to reform certain regulations, including the passage of a new set of laws on land registration. A Positive Step The law also prohibits developers…

Interview

Just getting started: OBG talks to Mohamed Al Mubarak, CEO, Aldar
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Interview:Mohamed Al Mubarak To what extent do regulators and developers need to address the availability of affordable housing in the emirate? MOHAMED AL MUBARAK: Abu Dhabi has a vast array of projects across the market from affordable apartments to the most luxurious penthouses money can buy. It is a characteristic of most global cities that property prices in some locations rise faster than others, depending on the location and quality of the build. Understanding the need for more mid-market…

Overview

In the pipeline: Although the market has slowed down, a number of infrastructure and tourism projects are in progress
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Activity and opportunities in the Abu Dhabi construction market appear to have slowed in 2015, due in part to a fall in the international price of oil. However, a wide range of large projects are currently being built, including a major airport terminal, nuclear power plants and a local branch of the Louvre museum. A number of construction and engineering projects, including the second phase of the national railway, a metro system, a major chemicals project and several more museums, are additionally…

Analysis

Ranking high: Efforts have eased the processes involved in obtaining licences and permits
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Indicators suggest that the ease of doing business in the Abu Dhabi construction industry is very high. The UAE as a whole (figures are not available for Abu Dhabi specifically) placed 31st out of 189 countries in the World Bank’s “2016 Doing Business” rankings, and second worldwide in the “dealing with construction permits” category (based on obtaining permits to build a warehouse), up from third place the previous year. Obtaining construction permits involves eight procedures, compared…

Analysis

Higher standards: Reforms have improved labour conditions and safety
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Currently, the construction industry is the largest employer by sector in Abu Dhabi, accounting for 29.5% of the employed population in the emirate in 2014 according to the Statistics Centre - Abu Dhabi (SCAD), up from 22% in 2013. Rise In Wages Total sector wages stood at Dh29bn ($7.9bn) in 2014, up from Dh27.6bn ($7.5bn) in 2013. Labour costs have been rising in recent years; salaries rose by 22.7% year-on-year in the third quarter of 2015 according to SCAD, building on substantial rises earlier…