Continuing investments in infrastructure support growing diversification and sustainability of regional economies: KPMG

Dubai, UAE, October 15, 2016: The building, construction and real estate [BCRE] sector has been one of the cornerstones of the UAE economy for some time and will continue to play a crucial role in the country’s long term economic diversification, making Dubai the ideal venue for KPMG's 17th Global Real Estate and Construction Conference, according to Vijay Malhotra, the CEO and Senior Partner of KPMG in the Lower Gulf.

The conference, held at the Ritz Carlton DIFC on 12 and 13 October and attended by KPMG partners and sector leaders from more than 20 countries, heard that BCRE, despite current market challenges, is one of the largest contributors to the UAE’s GDP after hydrocarbons and a key driver of investment, job creation, economic growth and national competitiveness.

Andrew Weir, Global Chair – Real Estate and Construction at KPMG, commented: “Today’s dynamic global landscape presents increasingly complex challenges. Liquidity and financing risks, sourcing and deployment of capital, corporate governance and regulatory reforms are at the top of management agendas. As the industry becomes greener and more sustainable, technology and innovation continue to play an integral part in developing the sector.”

Some of the key themes addressed during the conference were the impact of tourism and hospitality on the real estate sector, the role of data analytics and technology and growing inbound and outbound investment in the sector.

Globally, growing urbanization is driving a continued demand for infrastructure in all forms as more new projects emerge. The conference heard that organizations need to have the right support in place to deliver complex programs on time and on budget, minimizing waste and maximizing human resources.

Sidharth Mehta, a Partner with KPMG in the Lower Gulf and leader of the firm’s BCRE practice in the UAE and Oman, says: “While oil prices are slowly recovering from near-historic lows, optimizing liquidity is paramount. We expect that new infrastructure projects in the UAE – including investments in the hospitality, education and healthcare sectors – will boost the overall economy. Furthermore, when Expo 2020 and related infrastructure work really begins to accelerate in the next 18 months, we expect to see renewed and sustained demand in the construction sector in the medium to long term.”