The first quarter of 2017 will be slightly busier than previously expected for United Arab Emirates’ construction sector due to a pick-up in tendering activity in late 2016, according to consultancy Faithful+Gould.

“Q1 2017 will also see a reasonable quantum of other awards as Expo 2020-related schemes and those with resolved liquidity issues go to site,” the consultancy’s David Clifton says in a note seen by Kallanish. “The previously forecast 5% increase in awards for 2017 looks realistic in the current market for contracting.”

Q4 confirmed that the completion of the Gulf Cooperation Council’s rail network has been delayed until at least 2021. “This could easily be pushed back much further as governments examine aspirations versus requirement,” observes Clifton.

In 2017 the UAE is broadly keeping its projects investment at 2016 levels with $900 million allocated to federal projects within the budget and $325m for government housing. Dubai’s 2017 budget proposes a 27% increase in infrastructure spending versus 2016 (see Kallanish 23 December). “However, Abu Dhabi is likely to slow schemes again for 2017,” Clifton continues.

“With the continued softening of real estate prices, certain private sector schemes, especially mixed use, will undergo reprioritisation and revaluation as liquidity continues to tighten,” Clifton says.

Nevertheless, “… we expect growth to show signs of picking up as alternative financing – such us utilising Dubai's new public private partnerships (PPP) law - looks to be effectively utilised in the market,” Clifton concludes.