Dubai is constructing projects worth nearly $54 billion, confounding fears that low oil prices would dampen development in the Gulf emirate.
There are a further $337 billion of projects at the planning stage, says a report by consultancy Deloitte and Middle East Economic Digest (MEED) Projects, which provides data on construction.
"The Dubai construction market is proving resilient in the face of falling oil prices," says Ed James, director of content and analysis at MEED Projects, who states that in the first month of the year, contracts were awarded for the second phase of the Atlantis hotel on the Palm Jumeirah, worth $840 million, and Nakheel's $380 million Palm Gateway Towers, among others.
"As a result, companies involved in project development can feel quietly optimistic for the year ahead in the emirate, even if activity elsewhere in the region slows down," says James.
The data supports Dubai's claim to have diversified its economy away from oil by its focus on tourism, logistics and retail. Led by Dubai's growth in these areas, the UAE is thought to be one of the Gulf states that is best able to withstand prolonged long periods of low oil prices.
The figures are also supportive for real estate funds in the region, many of which focus on commercial and residential property in Dubai.
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