Projects such as Mohammed Bin Rashid City will spark a surge in construction hiring
The recent approval of a number of mega-projects, such as the Mohammed Bin Rashid City, will provide a dramatic boost to Dubai’s economy, a leading expert told Big Project ME on Tuesday.
In an interview, Mat Green, head of Research and Consulting UAE for CBRE Middle East, said that the announcement of these projects would spark a surge in hiring in the construction sector, which would in turn feed into complimentary business lines such as consultancy and real estate services.
“Dubai is looking to strengthen its position as a tourism hub in the region, as well as establishing itself as a global destination that can compete with markets in the US and some of the major markets in Europe, such as Paris and London,” Green said.
“At the moment, Dubai has beaches and quality hotels, but it doesn’t really have the same entertainment drivers, such as Disneyland or Universal Studios that you find in the US. I think that is obviously a key component of this project and Dubai is really just looking to cement its position.”
“We do not have firm figures at the moment in terms of the total project cost, but Mohammed Bin Rashid City is obviously a multi-billion dollar development. It will certainly lead to job creation within the construction sector and also within complimentary business lines. So overall, the project will have a definite and positive impact on the economy,” he added.
Dubai has seen its tourism sector grow from 9.1mn tourists in 2011 to 5.0mn in the first six months of 2012. Green said that it is reasonably expected that around 10mn visitors will visit the emirate this year, a 10% grow compared to the previous year’s figures.
“We are seeing a similar level of performance at Dubai Airport too. By the end of 2012, we expect to see close to 56 million passengers pass through, against 51 million in 201. The overall fundamentals of the hospitality sector appear very sound. Hotel occupancy rates are also performing well, averaging about 77 per cent for 2012, which will be slightly up on 2011 performance,” he said.