Construction delivery drivers
Somewhat unsurprisingly, our survey results noted the rising cost of construction as a ‘high impact’ factor that is making it difficult to deliver projects effectively within the UAE (62 percent of respondents identifying this as the case).
Inflationary pressures coupled with a buoyant market and the continued regional impact created by Saudi Arabia’s demand, likely means this will remain a key factor for some time.
Excessive lead times and difficult contractual and legal conditions were also noted as ‘high impact’ factors on the effective delivery of projects in the UAE.
of survey respondents noted excessive lead times, whilst 40% noted difficult contractual and legal conditions
72 percent of respondents said that political stability had either a low or no impact on project delivery. The UAE may be viewed as a more stable and less controversial country than some of its high-profile neighbours, due to its focus on growth across key sectors of the economy and the importance of key global diplomatic relations to achieve these growth ambitions.
Headwinds ahead
of our survey respondents said they foresee market disruption over the next 12 to 24 months.
Of these respondents, the majority viewed supply chain and project financing constraints as significant disruptors moving forward (68 percent and 59 percent, respectively).
Worthy of note for not being seen as a potential disruptor is net-zero legislation. As the world moves towards being more sustainable, and many countries introduce carbon-reducing legislation into the industry, it’s surprising, given the UAE’s sustainability ambitions, that more respondents did not view this area as a potential market disruptor.
© 2022 Turner & Townsend