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Reasons Behind Growth of UAE’s Construction Industry

by Anshul on November 20, 2021

Blog title

Be it exemplary designs, massive projects, great architecture, UAE stands apart as an international hotspot for construction industry.

When we speak of UAE, Innovation in Construction Projects is one of the key factors for its success.

Let us study some of the key factors that has led to its success.

Support for Research and Development Investment

There is a direct relationship between development of national innovation and local research and development. Research conducive environment is one of the key factors which has helped in the economic growth of UAE. The streamlining of investment into innovation strategy, support of development and research via reward systems, taxes are also added factors.

Commitment to Word

For success of construction, commitment is one of the most vital factors. Innovation processes goes through various administrative and technical challenges. Commitment of the organisation’s top management to innovation helps to overcome these challenges.  Construction projects of UAE has this commitment both from the government as well as top management of construction projects. Trust, team work, conflict resolution and respect are considered as enablers for innovation.

Policies and Actions

In 2014, the UAE government under HH Sheikh Mohammed Bin Rashid Al Maktoum launched the National Innovation Program. The sectors under this program include transport industry, renewable energy, health and space.

A set of policies were formulated that include:

  • New Regulation
  • Direction of Investment
  • Engorgement of Private Sector
  • Modification of Education Curriculum

Innovation in UAE has been initiated by leadership.  UAE has realised the role of innovation to reform the economy into a sustainable economy.

Procurement Systems

One of the major factors affecting innovative construction projects in UAE is the non-traditional procurement and contracting method. Construction industry includes partnerships, joint ventures which has increased the adoption of non-traditional procurement systems. In UAE the advanced and non-traditional procurement systems played vital role for integration. The supply chain management in various projects facilitated the collaboration among various project segments in UAE.

Unique Leadership Approaches

In UAE there are two types of leaderships - Transactional and Transformational.

Transactional style – there is clear communication between the team members and their leader and the leadership develops through that. This provides clear idea of what is expected from leaders, objectives and goals.  This impacts innovation in construction management.

Transformational Style - This style encourages members to go beyond limitations through change of thoughts and perceptions.  This enables team innovation abilities.

Market Research

Economic growth of UAE grew due to continuous market orientation, innovation and most importantly, innovation.  Researchers suggest that a healthy relationship between firm innovation and firm market orientation leads to country’s growth.  In UAE there has also been a highly competitive environment. Innovative solutions were generated to satisfy customer demands.  The research in UAE is focused in responding to market demands in order to enhance innovation systems.

Mobility of skilled Labour and Subject Experts

In UAE, there is lot of movement of skilled labours and experts between organisations.  This has allowed mixture of different working cultures.  Any policy that was stopping movement of specialists between companies were curbed.  Experts working in different organisations in UAE is highly praised. This helps skilled labour’s innovation abilities.

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Exchange of Knowledge

Paucity of skilled labours is always counted as the main challenge for UAE’s construction industry.  UAE has seven initiatives to support the national innovation in the country.  The initiatives include the annual exhibitions for innovation, universities, government entities and private sectors. Holding training programs for potential innovators by world leading experts under UAE government was another initiative that enabled this growth of construction management in UAE.

In-House Testing Facilities

UAE’s construction industry was facing shortage of local and in-house testing facilities once.   The national leadership launched a program for the development of local and in-house testing facilities. This reduced the construction process time span by great amount.

What we learn from UAE is collaboration of government, top level authorities, research and development cells both at micro and macro levels, detailed in all the above-mentioned points, are progress enablers in construction management. Also, visions, big goals and thinking about the collective development of the country and its experts instead of only organisational goals are some of the added factors.

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