The growth rate of Dubai’s construction sector showed an upward trend in February 2019 at a rate of 54%, compared to 53.8% in January 2019, research from Emirates NBD has revealed.
Despite a marginally higher growth rate in February, the pace of the growth in the emirate slowed down since 2018, according to Emirates NBD Research's Dubai Economy Tracker report. At 53.9%, the average construction sector index of January and February combined is below the average of 55.6% for Q3 and Q4 2018, states the report.
Employment rate in the emirate’s construction sector surged by 50.7% in February, down from January 2019's rate of 51.4%. According to the report, the future output index declined to 82.9% in February.
Output continues to steadily increase as developments related to Expo 2020 Dubai drive the construction sector’s growth in Dubai. In September 2018, Ahmed Al Khatib, vice president of real estate and delivery at the Expo 2020 Dubai, told Construction Week that major construction on the Expo site will be completed in October 2019.
According to a report published by Dubai Chamber of Commerce in January 2019, the UAE’s GDP is set to grow over the next five years on the back of Expo 2020 Dubai activities gaining momentum in the emirate. The GDP of the UAE's construction sector is expected to grow at a rate of 4.9%.
In a its year-end Global Construction Project Trend Report, Lodging Econometrics found that Dubai has the world’s second-largest hotel construction projects pipeline, with 168 schemes and 49,950 rooms as of 2018. Dubai is just behind behind New York City on the list, which had 171 hotels with 29,460 rooms under development as of end-2018.