Economic analysis construction Assignment Example | Topics and Well Written Essays - 3000 words

Economic analysis construction - Assignment Example Realizing that this increase in the available financial resources is not a sustainable growth strategy in the long-term, the UAE government has made several public commitments to reform its regulatory environment, strengthen the country’s macroeconomic foundations, sustain the rapid growth in the non-oil sector, and invest in human capital (World Economic Forum, 2). On the macro-economic level, economic recovery after the recent financial crisis is on a sustained track. UAE’s economic recovery has continued to gather momentum in the recent past, driven by sturdy expansion in trade, tourism, manufacturing and transport. Additionally, the construction and real estate sectors have also bounced back from the slump experienced during the recession. On the back of a notable rebound of consumer confidence, real Gross Domestic Product (GDP) growth in 2013 stood at 4.0%, following a 4.4% growth in 2012, according to the estimates provided by the International Monetary Fund (Bank Audi, 1). The GDP growth and the rebound in consumer confidence is a good development within the market the construction company intends to penetrate. This is because it will create opportunities that will drive demand in the construction sector for commercial and residential real estate. The Abu Dhabi Government committed to finance an additional AED 330 billion in early 2013 for major developments over the coming five years. The government’s commitment focuses on social development, specifically in the education, healthcare, housing, and selective strategic transport projects (Kerr, Ryburn, McLaren, & OrDentons 1). The UAE’s real estate sector continues to be characterized by unique patterns in two major cities. While Abu Dhabi’s market remains subdued, Dubai’s market has been experiencing renewed development activities, an increase in prices, and growing concerns about a bubble comeback