Middle East construction industry 'in crisis', more casualties loom, warns expert - Arabianbusiness:
A leading consultant has warned that the Middle East's construction industry is “in crisis” and Dubai-based giant Arabtec, which is set to go into liquidation, will not be the last high profile casualty unless changes are made in the sector.
The Dubai government last week passed a new building code, aimed at reducing construction costs by streamlining building rules.
However, Kenny Linn, partner – capital project services leader at PwC Middle East, told Arabian Business the current delivery model is not sustainable and less aligned to the ambitions of the region.
He said: “The collapse of Arabtec is symptomatic of an industry that is in crisis. Lowest price competitive tendering, inequitable risk allocation, low profit margins, uncertain pipeline and late payments drag the construction industry down meaning that it is challenging for the sector to invest in building new skills and innovation that will boost productivity and improve delivery.”
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