UAE - Mubasher: The UAE construction sector is forecast to witness a 3.8% growth in 2021, as shown by the latest Middle East construction industry findings by Linesight, an international construction consultancy.

The findings focus on the COVID-19 impact on the real estate sector in the UAE, Saudi Arabia, Bahrain, and Kuwait.

After being negatively affected by the coronavirus (COVID-19) pandemic in 2020, the UAE's real estate industry is expected to see modest growth in 2021.

GlobalData referred that the UAE's construction sector grew by 3.3% in 2019, and this figure was expected to rise to 4.3% in pre-COVID in 2020.

Due to COVID-19 and a drop in oil prices, the output would contract to 1.9% in 2020, driven by reduced productivity and site capacity.

In Saudi Arabia, the spending on infrastructure would exceed $1.1 trillion because of the launch of several multi-billion-dollar infrastructure projects relating to Saudi Vision 2030.

These projects include the $500 billion NEOM project, $20 billion Diriyah Gate Development, $10 billion Red Sea Development, and the $5 billion Qiddiya Entertainment project.

The regional director for Linesight Middle East, Ciaran McCormack, said: "As a result of the IPO of Saudi Aramco and the Public Investment Fund (PIF), we expect to see sustained investment in the construction industry, a result of a significant number of projects alongside the ongoing megaprojects, which will keep the industry buoyant."

As for Kuwait, a survey by Bensirri public relations showed that 45% of business owners suspended their activities, with another 26% expected to declare bankruptcy amid COIVID-19 and a decline in oil prices.

The construction industry is forecast to report an uptick, in line with the country’s Vision 2035.

McCormack concluded: "The data centre market in the GCC, in particular, has remained relatively resilient as the shift towards virtual working platforms and online shopping is compounded by longer-term trends, such as investments in 5G technology, this is creating demand in the technology market segment."