Cracking the code

The building and construction sector has become a mainstay of the United Arab Emirates' economy over recent years and is now the third largest sector of the economy after oil and trade. After years of following British standards in the absence of a formal construction code, Dubai led the way with the development of a UAE building code...

The areas which have seen the highest level of construction within the UAE are Dubai, Abu Dhabi, Dubai and Sharjah. There have been numerous factors driving the bulk of the construction over the last few years, including massive Government spending on infrastructure and transport routes such as roads and airports; a wealth of oil reserves and the relaxation of foreign investment laws allowing foreign nationals to purchase property to their hearts content.

As well as being allowed to buy property, there are also no significant restrictions on foreign involvement in infrastructure projects at the construction phase, except that in order to bid for a project tender, a foreign company must be represented by a local partner.

However, unless the building has been initiated by the Government, there is a five per cent duty on the import of materials, except for steel and cement, which may put off foreign construction companies or developers.  

Industry standards

As far back as 1998, calls from the UAE Contractors' Association were growing ever stronger to introduce standardised construction codes on building materials and practices.

The absence of a uniform building code for the UAE meant that engineers and contractors were not bound by specific regulations, with some using British, European or American codes.

Dubai introduced the UAE building code almost three years ago, and it is now being implemented in stages but, for some, British market practice still stands.

There is also a new code for managing safety on construction sites in Dubai. An Arabic version was released in July 2008 and an English translation followed in January of this year.

Dubai Municipality's Building Construction Department issued the safety code to regulate the working conditions at construction sites in the city for safety of thousands of people employed on a variety of projects.

The code states that consultant engineers and contractors are responsible for the overall safety of a construction project and also for nearby buildings that could be affected by the work.

They are also responsible for the safety of all employees and carrying out fire safety measures.

And over in Abu Dhabi...

Abu Dhabi has followed Dubai and seen a huge increase in construction over the past few years.

Late last year, the non-profit organisation International Code Council, (ICC) which is dedicated to developing a single set of comprehensive and coordinated national model construction codes, signed an agreement with the Department of Municipal Affairs (DMA) in Abu Dhabi to develop new building codes in the Emirate.

The council developed the three separate sets of model codes used throughout the USA and now, the DMA will adopt the International Building Code and the groundwork for the Abu Dhabi International Building Code will be laid.

The aim of the deal is to improve safety and standards on Abu Dhabi construction projects.

Once the codes have been fully developed they will be enforced through an inspection programme throughout all construction projects in the Emirate.

Future outlook

The recent Gulf Construction Outlook Survey, conducted by MEED, a Middle East based business intelligence provider, found that the UAE property sector is expected to offer minimal construction opportunities in 2009.

The survey, which polled major construction firms across the UAE, focused on four major categories, including market outlook, client-contractor relation, construction costs and construction management.

Two-thirds of respondents said that they intend to shift their focus towards Abu Dhabi, Qatar and Saudi Arabia this year.

The Director of Arabian World Construction Summit Anca Westley told Estates Dubai,  "Despite the challenging economic climate, the 2009 summit reflects the region's ambition to maintain its status as world leader in construction sector.

Picture by reinn