New Thinking for the New Normal

13 December, 2017 | By RICHARD THOMPSON

The region-wide fiscal rebalancing triggered by the fall in oil prices since 2014 has had a profound effect of the region’s construction industry.

Many of the issues that have dogged the industry for years such as late payments, unequal contracts, and disputes over project variations, have been exacerbated by the slowdown in new projects. And contractors say that cash flow is the biggest challenge that they are facing today.

But just as the region’s governments have responded to lower oil prices with-ranging reforms, the drop in oil prices also presents an opportunity for the UAE construction industry to change and to get rid of some of its entrenched, self-harming practices.

In New Thinking for the New Normal, a construction industry research report from MEED in partnership with Mashreq, senior stakeholders from across the UAE construction industry set out their views on the challenges facing the UAE construction industry today. And on the opportunities for change.

Download New Thinking for the New Normal now to find out about the opportunities and challenges facing UAE construction.

MARKET TALK: It is time to innovate the way projects are financed

Chiradeep Deb, Managing director and head of corporate finance, Mashreq Strategic thoughts: ■ Low oil prices continue to squeeze contractor cash flow and banks need tighter due diligence under current scenario to on-lend ■ After a tough period of two ...

UAE mid-market firms must plan for inflation

Middle market companies in the UAE must prepare for a higher interest rate environment in 2022 and 2023, says latest briefing from Mashreq Bank Businesses in the UAE must prepare ...

UAE Construction Opportunity

With a pipeline of $820bn of projects planned, and an outlook for $40bn of contracts to be awarded every year, the UAE has plenty of reasons for wanting to ensure ...

GCC’s pegged exchange rates to remain

S&P Global Ratings says GCC states have sufficient access to foreign currency assets or external financial support S&P Global Ratings (S&P) has said that the GCC’s pegged exchange rate regimes will ...

Transforming the supply chain

COP26 will increase demands for greater supply chain sustainability, says experts at latest MEED-Mashreq webinar Watch the on-demand webinar here The Glasgow Climate Pact, signed on 13 November at the conclusion of ...

Adnoc to launch downstream investment opportunities in May

Abu Dhabi energy major will detail investment plans for downstream players at event in Abu Dhabi Abu Dhabi National Oil Company (Adnoc) wants to intensify its downstream expansion drive in order ...

Oversupply continues to challenge Dubai office market

Supply and demand imbalance is resulting in less office space being built and property owners offering tenants generous incentives Dubai’s office market continues to be oversupplied, resulting in less office space ...

Back to the Drawing Board for Kuwait

The cancellation of the Al-Zour North 2 IWPP tender is the latest setback for the country’s ambitious private development programme The cancellation of the tender for the Al-Zour North 2 independent ...

Bahrain keeps building as market rebounds

The government has committed to investing in new infrastructure projects Bahrain’s construction market rebounded in 2018 with a total of $2.44bn of contract awards, according to regional projects tracker MEED Projects. The ...

CONNECT SERIES: Cash is king

Contractors need to work closely with their lenders, creditors and other partners to ensure they remain solvent and stable through the Covid-19 crisis For the past five years, construction companies across ...

MARKET TALK: It is time to innovate the