Market Monitor - Construction industry - UAE

Market Monitor

  • United Arab Emirates
  • Construction

19th February 2015

Problems remain in the building sectors of most of the countries covered in this issue of the Market Monitor. Consequently, the outlook for the construction industry in 2015 remains muted.

Market performance at a glance

United Arab Emirates

  • The sharp decrease in oil prices having a negative impact on the economy, and is also affecting real estate and construction.
  • Payments in the construction sector take between 90-120 days on average. However, payment is often delayed up to 180 days or even longer, especially when government departments are involved.
  • Due to the current challenging economic environment (probable overcapacity, reduced oil prices, less government spending) we are now more cautious in underwriting construction businesses.
  • Payment behaviour is expected to deteriorate and insolvencies to increase in the coming months.
  • Prudent cash flow management and continuation of bank facilities will be key to sustaining business in 2015

Related documents


The statements made herein are provided solely for general informational purposes and should not be relied upon for any purpose. Please refer to the actual policy or the relevant product or services agreement for the governing terms. Nothing herein should be construed to create any right, obligation, advice or responsibility on the part of Atradius, including any obligation to conduct due diligence of buyers or on your behalf. If Atradius does conduct due diligence on any buyer it is for its own underwriting purposes and not for the benefit of the insured or any other person. Additionally, in no event shall Atradius and its related, affiliated and subsidiary companies be liable for any direct, indirect, special, incidental, or consequential damages arising out of the use of the statements made information herein.