There is a multi-billion dollar construction boom going on in the UAE - and some strong hiring too.
Contractors, project managers, and recruitment consultants say the new workforce intake by the local construction sector is progressing at its fastest in recent times. If there’s anyone available with the required project experience, the candidate will be hired. Instantly.
“There is no way you have project managers with 3-5 years experience in the UAE or Gulf sitting around without work for long,” said a consultant. “It’s that kind of project environment right now.”
One only needs to look out the window to see proof of what means. New sites are being mobilized for towers and communities even as existing ones rush toward their completion deadlines. On the government side, more highways and required infrastructure are being put into place, while sectors such as manufacturing are seeing work start on new projects or expansion. All of which adds up to more work for construction. (The upbeat mood will be on display at the Big 5 Global, the industry event that opens in Dubai today (November 26).)
Drake & Scull International, the Dubai-based MEP firm, said that it has advertised for multiple roles as it rebuilds its project book after a harrowing five years of financial restructuring. “The vacancies are mostly to fill senior positions, including a general manager for our oil and gas sector projects,” said a spokesperson. "Plus, we already had multiple job roles filled in recent months as the UAE project market continues to thrive." (Drake & Scull, incidentally, also confirmed a new CEO in Muin Al Saleh recently.)
Salaries stuck in a tight range
Across the construction sector, all that hiring spree has not materialized into significant hikes when it comes to salaries. So far.
“Salary packages are stable for a couple of years now, and we don’t see any significant changes in the future,” said Ravi Jethwani, CEO of Innovations Group, a recruitment consultancy.
“UAE construction sector recruitment is taking place at both levels – top, and entry. Mass hiring is happening at the bottom of the pyramid for obvious reasons.
“Mega-projects have necessitated a significant demand for manpower, thereby driving the need for skilled and unskilled workers across specialties. A few skilled workers can work on multiple projects at the same time, but the majority is dedicated to specific projects.”
New UAE projects are all over the place
When it comes to real estate, Dubai’s Palm Jebel Ali project alone has seeded the market with back-to-back contracts, totaling more than Dh6 billion. These three contracts for a combined Dh5 billion, issued in October, for building the Dh19 million plus villas and associated infrastructure.
In September, another Dubai master developer, Meraas, handed out a Dh850 million contract for the prestigious Bvlgari Lighthouse tower on Jumeira Bay island to Dutco Construction.
Just recently, Arada confirmed it had issued the first contract for its super-luxury Armani Beach Residences on Palm Jumeirah. The contract went to the International Foundation Group (IFG) for shoring, piling, dewatering, and excavation. The main construction contract for these Aramani homes will be awarded in Q1-2025.
This wave of projects and project awards in the UAE will continue to give, say industry sources.
“The Palm Jebel Ali contracts were a major milestone, and more large-scale projects are expected soon,” said Gordon Rodger, Managing Director at Stonehaven. “Recent developments include RTA’s award of a significant contract to improve entry and exit points at Dubai Harbour.
“Emaar has appointed South Korea’s Ssangyong Engineering & Construction to build two luxury waterfront towers in Dubai Harbour. These interconnected high-rises, each exceeding 50 stories, will house over 920 apartments.
“Damac Properties has also awarded the main construction contract for the Harbour Lights residential tower, and Expo City Dubai has awarded it for its Expo Valley project. These projects really show the growth in Dubai’s construction sector right now.”
Building material costs
The heightened optimism is not just about the contracts. For good measure, the cost inflation that had swept through the construction industry in 2023, especially the latter part of the year, has stabilized. or dropped.
“Building material costs have generally softened in 2024,” said Dileep Kumar, founder and Chairman of Heilbronn Properties.
“However, the price for concrete supply did increased 20%-30% due to high market demand, while the cost of hiring formwork systems has risen 40%-50%, driven by the unavailability of materials.
But steel (around Dh2,400-Dh2,500 a tonne) has remained unchanged, while cement (Dh11.50Dh13.5 for a 50-kg bag) too has been consistent.”
Difficult H1-24
The construction sector had its share of hurdles to overcome this year, not least the April rains and the flooding of project sites. Losses were sustained, and it was felt that the time to clear the water logging and restart work would eat into project deadlines. But, based on contractor feedback, much of that was done without getting too bogged down in delays. Most sites went back into full construction mode fairly quickly.
"We’ve seen a considerable increase in tougher clauses being included in contracts," said Rodger. "Given the uncertainties around supply chains and material costs, developers are trying to protect themselves from risk.
"These clauses often address price escalations and delays, which helps both sides manage the unpredictability of the global supply chain. It’s becoming standard practice and will likely remain so until more stability is achieved.”
