Challenges

The GCC construction industry has had a string of contracting backlogs and has reached an all-time low in the economic cycle. Low tender prices in the construction market, due to low level of development over the past two years has profoundly affected this sector.

The major challenges faced by the industry in the UAE include minimal access to capital, delay and default on payments, VAT Implementation, risks posed by third-party contractors, a high cost of labour and increased competition with low-profit margins.