Soaring construction costs could force contracting companies to abandon the UAE, a leading Abu Dhabi business figure warned on Wednesday.

Khalfan Al-Kaabi, construction committee head at Abu Dhabi Chamber of Commerce and Industry, said contractors had been severely hit by a surge in prices of cement and other building materials, UAE daily Emirates Business 24/7 reported on Thursday.

The UAE’s economic boom had sharply increased construction expenses, hitting contracting companies hard and further increases “could push them out of the country”, Al-Kaabi said.
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The cost of building one square metre of a villa had rocketed by nearly 60% in one month from 2,200-2,300 dirhams in December to 3,700-4,000 dirhams in January, he said.

Source: ArabianBusiness.com – Soaring costs risk contrators exiting UAE

This entry was posted on Friday, May 9th, 2008 at 4:27 pm.
Categories: Business, Development.

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