The UAE construction industry is expected to witness a compound annual growth rate (CAGR) of around 20 per cent from 2010 to 2013, a report said.
Rapid economic development will continue to drive construction activities and infrastructure development in the emirate, added the UAE Construction Industry Outlook for 2012 report by industry intelligence provider RNCOS.
In line with this forecasted growth, Danube Building Materials, the leader in construction, building materials and shop fitting industries, recently inaugurated its Dh50 million ($13.6 million) Danube Buildmart in Dalma Mall, Abu Dhabi, and prior to that the opening of its Dh15 million store under the same banner in Ibn Battuta Mall, Dubai.
At present, there are a total of 25 global Danube retail facilities – 17 in the UAE, one in Saudi Arabia, two each in Bahrain and Oman and three in India, in addition to procurement offices in China and Canada.
“The bullish projections directed towards the UAE construction sector has drawn our focus further into broadening our presence in the domestic market, as we believe that excellent opportunities for growth are in sight for investors, developers and other players in the construction arena,” said Rizwan Sajan, chairman, Danube Building Materials.
“Our continuous growth is also reflective of the UAE’s steady movement towards recovery, as well as the importance of building materials suppliers in the continuous growth witnessed by the country in terms of quality, design and aesthetic standards of iconic projects.”
“We are committed to delivering the highest quality products to our local customers, and we are proud to be witnessing major successes in our efforts to address the needs of the UAE market,” he added.
With aims to hit Dh2.5 to Dh3 billion in the next three to four years as the market fully recovers and prices normalise, Danube Building Materials has recently announced that it is looking at an initial public offering (IPO) listing in Saudi Arabia or the UAE within the next 5 years.
The company’s decision to go public is driven by the significant growth it has witnessed in the recent years, which peaked in 2009 when it secured a total of Dh1 billion in annual turnover despite the challenges presented by the financial crisis. The company further revealed that it is also open to dual listing in both countries.
“The payment situation between developers and contractors in the UAE is showing signs of improvement, thereby underscoring the steady path being taken by the emirates’ construction market towards a healthier growth,” Sajan said.
“In line with this, we are focused on expanding our operations to strengthen our position and leverage the opportunities that will arise, as we are confident of the UAE construction market’s continuous development in the years to come,” he concluded.