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Sunday, 28 August 2016

UAE construction sector in fast-track consolidation | GulfNews.com

UAE construction sector in fast-track consolidation | GulfNews.com:

"The UAE’s construction sector is becoming an extremely localised affair, with another international firm — Murray & Roberts — contractor deciding to call it quits on this market. As long as the pace of new project activity remains subdued, the industry can manage such exits, industry sources say.
But the situation can easily tighten up all too suddenly if activity picks up — and it certainly will — during the home stretch of Dubai’s Expo 2020 preparations as well as the newer mega developments in the books of Nakheel (at Deira Islands and elsewhere), Meraas (the launch of Six Flags) and Emaar (Dubai Creek Harbour) as well as those mounted by other developers. On top of this, each of the emirates is continuing with fairly high spending patterns on infrastructure related investments.
“In the current circumstances when industry-wide margins have more than halved, no contractor can keep maintaining the same overheads,” said a source at a leading construction firm. “The focus on curbing costs has to be constant — more so when there are delays on the payment side.”
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