The paper "The Construction Boom in the UAE" is an outstanding example of a macro & microeconomics assignment. Today, there is a boom in the construction industry in the United Arab Emirates (UAE) and Saudi Arabia. In the Middle East, most of the countries have large oil reserves; hence a boost in their economy (Badouri 80). For the UAE, it has little oil reserves compared to the other countries in the region, but it is known as one of the world’ s most developing countries. In order to reduce its dependence on oil, the country has developed a tourist destination and trading platform.
Lately, there has been an uprising in the construction of shopping malls, hospitals, banks and buildings in the UAE. This boom in the country’ s construction industry is believed to be driven by certain factors (Badouri 80). What drives the construction sector in UAE? Firstly, this construction boom in the country is largely influenced by the fact that the country is one of the Middle East countries that have oil reserves (Badouri 81). Despite the fact its reserves are fewer than other countries; the country has managed to utilize this resource well so as to develop its infrastructure.
Taking advantage of the rising oil prices in the world, the country’ s income is used in the development of the construction sector; hence, improved economic status. Consequently, the improvement in the country’ s economic performance has increased the demand for residential facilities and infrastructure. There is also a need for shopping malls, health facilities, banking halls, and many other buildings in the country. Therefore, this is one of the major factors that contribute to the construction boom in the UAE (Badouri 83). Secondly, the construction boom in the UAE is driven by the prevailing positive demographic fundamentals.
UAE is one of the countries in the world that have the fastest-growing populations. Studies indicate that population growth in the country is expected to rise by 2% annually through 2025.
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