According to EC Harris' 2014 International Focus on the UAE report, the country is increasing its social infrastructure spend as well and there is accelerated momentum across industry sectors.
"The UAE has experienced a shifting momentum of activity over the past decade with 2009 onwards being difficult years for the market. The dynamic has changed from a period of negative to low inflation over the last few years to a period of moderate increase," said Christopher Seymour, Partner and Head of Property and Social Infrastructure at EC Harris. "The market is finally showing real signs of recovery and prospective growth suggesting that the construction market will remain strong this year."
The report takes into account the UAE's estimated real gross domestic product (GDP) growth, market conditions and construction tender price levels. According to EC Harris' Construction Cost Index, construction prices in the UAE are set to rise by 4 to 5% over the duration of the year and approximately 6% in 2015.
The volume of announced and planned projects in the UAE in 2014 is expected to be valued at US$ 315 billion, and as of May 2014, US$ 212 billion worth of construction projects are currently under construction.