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Construction, real estate 'key to UAE growth'

DUBAI, October 16, 2016

The building, construction and real estate sector has been one of the cornerstones of the UAE economy for some time and will continue to play a crucial role in the country’s long-term economic diversification, said an expert at a key industry event hosted by leading tax advisory services firm KPMG in Dubai, UAE.

Despite the current market challenges, this sector is one of the largest contributors to the UAE’s GDP (gross domestic product) after hydrocarbons and a key driver of investment, job creation, economic growth and national competitiveness, stated Vijay Malhotra, the chief executive and senior partner of KPMG in the Lower Gulf.

He was speaking at KPMG's 17th Global Real Estate and Construction Conference held at the Ritz Carlton DIFC last week which was attended by KPMG partners and sector leaders from more than 20 countries.

Andrew Weir, the global chair (Real Estate and Construction) at KPMG, said: "Today’s dynamic global landscape presents increasingly complex challenges. Liquidity and financing risks, sourcing and deployment of capital, corporate governance and regulatory reforms are at the top of management agendas."

"As the industry becomes greener and more sustainable, technology and innovation continue to play an integral part in developing the sector," he stated.

Some of the key themes addressed during the conference were the impact of tourism and hospitality on the real estate sector, the role of data analytics and technology and growing inbound and outbound investment in the sector.

Globally, growing urbanisation is driving a continued demand for infrastructure in all forms as more new projects emerge. The conference heard that organisations need to have the right support in place to deliver complex programmes on time and on budget, minimising waste and maximising human resources.

Sidharth Mehta, a partner with KPMG in the Lower Gulf and leader of the firm’s building, construction and real estate sector practice in the UAE and Oman, said: "While oil prices are slowly recovering from near-historic lows, optimising liquidity is paramount. We expect that new infrastructure projects in the UAE - including investments in the hospitality, education and healthcare sectors - will boost the overall economy."

"Furthermore, when Expo 2020 and related infrastructure work really begins to accelerate in the next 18 months, we expect to see renewed and sustained demand in the construction sector in the medium to long term," he added.-TradeArabia News Service




Tags: UAE | Construction | real estate | KPMG | growth |

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