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RLB CRANE INDEXª
Middle East 2nd Edition – May 2015
Rider Levett Bucknall’s 2015 Crane IndexTM, released during the month of May, shows an increase in crane counting
Dubai and Doha, and a slight decrease in Abu Dhabi. This highlights a continuous economic growth and maturity of
the construction market despite the drop in oil prices and the political uncertainty reigning in the region.
UNITED ARAB EMIRATES
DUBAI
Key economic and financial indicators, including real
estate prices, airport arrivals and hotel occupancy,
point to further acceleration of the UAE’s economic
growth. Positively, Dubai’s Real Estate demand was
not considerably impacted by the oil prices due to the
economic diversity of the emirate and its position as a
regional business hub.
The RLB Crane IndexTM expanded its coverage this
quarter as many new cranes are being spotted in areas
not visited previously. Such areas are Jebel Ali Industrial
Zone, the Green Community and Silicon Oasis.
As per the RLB Crane IndexTM, the Residential sector
has the highest count 362 cranes accounted for. While
many residential units were delivered during the first
quarter, districts like Jebel Ali Industrial Zone Karama,
Al Nahda, Al Barsha, International Media Production
Zone and Sports City recorded a substantial increase
in cranes compared to last year as developers are
focusing on affordable mid to low-end residential
developments which remain in high demand due to the
limited supply. Dubai Marina and Downtown are still
expanding with more residential projects being built
while other developments like Jumeirah Lakes Towers
(JLT) and Business Bay show a decrease in crane count
as a big number of residential towers are in their final
completion stages or already being delivered.
May 2015
%
Movement
Dec 2014
%
Residential
362
62%
22
340
72%
Commercial
99
17%
57
42
9%
Hotel
63
11%
12
51
11%
Other
23
4%
6
17
4%
Retail
15
3%
3
12
3%
Education
7
1%
6
1
0%
Recreation
7
1%
1
6
1%
Health
6
1%
3
3
1%
Civic
5
1%
2
3
1%
Civil
-
-
-
-
-
TOTAL
587
-
112
475
-
With positive recovery signs of the UAE’s market,
Dubai’s position as the central hub for global
corporations in the Middle East proved to remain strong
and as a result is impacting the Commercial sector
which significantly increased in the number of cranes
during the first quarter of 2015. With 99 cranes on
office developments, RLB Crane IndexTM highlights a
solid demand in good quality offices especially across
major free-zones which attract non-oil related sectors.
Major new developments are noted in Meydan area,
Hamriyah Port and Trade Centre area. Business Bay
and JLT remain with the highest number of Commercial
projects.
Since the December 2014 count, RLB Crane IndexTM
recorded an increase of 23% in the Hospitality sector
bringing the total count to 63 cranes. This shows
Dubai’s commitment to investing in touristic and leisure
attractions and expanding its hotel infrastructure in
preparation for the Expo 2020.TECOM, Business Bay
and Al Barsha have the highest number of cranes on
hotels and serviced apartments.
With the continuous economic diversification and
growth, the Industrial sector shows a considerable
increase in cranes since last year’s count. Al Quoz
Area recorded the highest number of cranes with over
20 warehouses and manufacturing facilities under
construction in the area.
As for the Retail market, although it is noted to be the
leading sector in the region, it is still being developed
with a continuous growth plan until the Expo 2020.
Dubai is constantly attracting new retailers and
brands as well as developing different retail marketing
strategies which maintains a high level of market
attraction and demand. The RLB Crane IndexTM records
15 cranes in April 2015 showing an increase by 3 cranes
since December 2014.
The Recreation sector is in constant development and
expansion across different areas in Dubai as it is the
basis of tourism and economic stimulation. With major
projects in the pipeline, the RLB Crane IndexTM places
the sector in fifth place with 7 cranes, a slight increase
since the last count mainly due to a sports stadium
development next to Al Ahli Riding Club.
Also in fifth place is the Education sector, which has
marked an increase of 5 cranes since last December’s
count with 2 schools launched by Gems Education and
new developments in Dubai Academic City. Dubai’s
rapid growth drives the government on placing
importance and high priority to implement a solid
education system for human capital development and
economic sustainability.
The RLB Crane IndexTM recorded 6 cranes within the
Healthcare sector, a notable increase to the count with
Al Maktoum Hospital Redevelopment in progress. The
healthcare sector will continue its growth with the
recent launch of the second phase of Dubai Healthcare
City project, in line with the UAE vision 2021promoting
the UAE as a medical and research hub.
As for the Civic sector, 5 cranes were accounted for
within Dubai showing a steady development since last
December.
The RLB Crane IndexTM recorded an impressive amount
of active cranes during the first quarter of 2015 totaling 587 cranes across Dubai, an increase by over
100 cranes since December 2014.
Dubai Cranes Breakdown
350
300
250
200
150
100
50
Residential
Commercial
Hotel
Other
Retail
Education
Recreation
Health
Civic
May-15
362
99
63
23
15
7
7
6
5
Dec-14
340
42
51
17
12
1
6
3
3
ABU DHABI
Abu Dhabi maintains a steady and healthy overall
economic growth in 2015. The Government is being
more vigilant with their spending while shifting
the construction industry’s focus towards social
infrastructure promoting a mature and sustainable
economy. The skyline is still dominated by cranes
on Residential development as well as Industrial
&Infrastructure projects which account for 45% and
33% of the total number respectively.
As highlighted by the RLB Crane IndexTM, Abu
Dhabi is investing heavily in its urban expansion and
Industrial sector growth such as renewable energy and
petrochemicals as well as the aviation and transport
sectors. The Residential sector in Abu Dhabi remains
stable with 109 cranes, a decrease by more than 20
cranes since last December’s count mainly due to the
completion and handovers of some projects and a lag
before the commencement of new projects. The main
areas with residential developments are Reem and Yas
Islands, Al Raha Beach and the Airport road.
Government spending continues to shape the market
with greater focus on Industrial and Infrastructure
projects which show healthy signs of growth with 79
cranes counted across the city, a slight increase since
last year mainly due to developments in the Mafraq area
and Al Mussafah.
The Commercial sector has the highest count with 21
cranes in the emirate’s skyline highlighting an increase
by more than double since last December’s count. Major
office developments are noted beside Abu Dhabi Mall,
on Yas Island, Reem and Maryah Islands, the Airport
road and along Rashid Ben Maktoum road in Sports
City.
With Abu Dhabi’s education plan being a top priority
and an important part to achieving a successful
economic 2030 vision, the government is committed
to delivering new schools and educational facilities and
continues to enhance their programs and apply best
practices. The Education sector recorded 14 cranes
in Abu Dhabi, a drop of 3 cranes since last December
2014with two schools nearing completion in Al Rawdah
and Al Khalidiya districts.
With regards to the Hospitality sector, the RLB Crane
IndexTM recorded an increase in cranes making the total
count for the first half of 2015 at 7 cranes. New cranes
have been placed on the Rotana hotel on Saadiyat
Island. The new supply in hotels has been steady in Abu
Dhabi supporting a healthy recovery.
May 2015
%
Movement
Dec 2014
%
Residential
109
44%
-28
137
55%
Commercial
21
9%
12
9
4%
Hotel
7
3%
2
5
2%
Other
79
32%
9
70
28%
Retail
-
-
-
-
-
Education
14
6%
-3
17
7%
Recreation
4
2%
4
-
-
Health
6
2%
2
4
2%
Civic
7
3%
-2
9
4%
Civil
-
-
-
-
-
TOTAL
247
-
-4
251
-
The Civic sector also recorded 7 cranes, noting a drop of 2 cranes attributed to the construction progress on the
Louvre Abu Dhabi.
As for the Healthcare sector, the crane count slightly increased from 4 to 6 cranes with the aim to answer the
growing population’s needs and ensure a solid healthcare system is in place matching the continuous economic
growth and improvement.
New cranes have been added to Yas Marina skyline with new recreation expansionin Yas Marina, developing it
further as a destination for general public entertainment.
Abu Dhabi’s overall outlook is positive and although the recovery pace is still slow, the construction industry
continues to show healthy improvements with 247 cranes recorded by the RLB Crane Index
TM
Abu Dhabi Cranes Breakdown
140
120
100
80
60
40
20
Residential
Other
Commercial
Education
Hotel
Civic
Health
Recreation
May-15
109
79
21
14
7
7
6
4
Dec-14
137
70
9
17
5
9
4
Retail
Civil
STATE OF QATAR
DOHA
RLB Crane IndexTM Middle East has been introduced in
Qatar covering the city of Doha and surrounding major
centres (excluding Lusail City).
The positive growth of crane numbers across Doha
highlights a significant amount of construction work
in progress across the city. The Doha skyline shows a
significant number of new crane installations since the
last count in December 2014.
May 2015
%
Movement
Dec 2014
%
Residential
59
17%
13
46
16%
Commercial
66
19%
6
60
22%
Hotel
31
9%
7
24
9%
Other
-
-
-
-
-
Retail
36
10%
4
32
11%
Education
7
2%
-1
8
3%
Construction activities and infrastructure developments
such as the roads, railways and stadiums are key drivers
for Doha’s economy and guarantee a robust future for
the construction industry and the non-hydrocarbon
sector.
Recreation
23
7%
16
7
3%
Health
10
3%
-1
11
4%
Civic
36
10%
7
29
10%
Civil
85
24%
23
62
22%
With all major projects generally being policy
driven, the primary focus is strengthening the
current infrastructure followed by overall economic
diversification and cultural growth. According to the
RLB Crane IndexTM, the Civil sector in Doha has the
highest with 85 cranes, noting an increase of 23 cranes
since last December count. The increase is mainly due
to the work commencement on the various rail related
projects for the Doha Metro programme.
TOTAL
353
-
51
279
-
Qatar’s commercial sector remains with the second
highest count with a slight increase in crane count
totaling 66 cranes in April 2015. The RLB Crane IndexTM
recorded 59 Residential cranes indicating an increase
since the last count and a significant level of investment
in the sector. The Pearl Qatar development account for
one third of the Residential cranes.
Doha’s retail sector s showing positive growth signs
with 36 cranes. This count is expected to increase
further with the rising expatriate population and
demand for retail brands. Major malls and retail shops
under construction are noted including Msheireb
Downtown, Doha Mall and Festival City.
As Qatar is looking to enhance its tourism sector for
a successful FIFA World Cup in 2022, the national
vision goes further by building a more authentic type
of tourism, with focus on historical sites and local
cultural entertainment offerings. The Civic sector in
Doha recorded 36 cranes. A major portion of the cranes
are recorded on the National Museum and the Katara
Village which remain the largest contributors since last
December.
RLB Crane IndexTM recorded 31 cranes in the Hospitality sector showing a 30% increase in the level of activity. While
a number of new hotels are scheduled to open before the end of the year, the demand for hotel accommodation is
expected to grow as the 2022 World Cup will be attracting a lot of tourists and football fans.
The Sports and Recreation sector recorded a significant increase since last December with 23 cranes spotted, more
than three times the last count value. The Khalifa Stadium in Aspire Zone and Al Bidda Park account for bulk of the
additional count. The RLB Crane IndexTM for the recreational sector is expected to continuously evolve as the city of
Doha gets ready for the World Cup and long term self-sustainability plans.
Lastly, the RLB Crane IndexTM highlights a crane count of 10 cranes in the Health sector and 7 cranes in the
Education sector. With a significant programme of health and education projects planned across Qatar, it is
expected that the RLB Crane IndexTM for these sectors will show significant movement over the next few periods.
Overall, the RLB Crane IndexTM May report shows a significant increase of cranes in Doha. The revised total of 353
indicates significant growth in activity. The recent fall in Global oil prices, along with an increased focus by Qatar’s
government on reviewing project priorities, is expected to have an impact on the amount and timing of future
projects. However, an overall positive growth trend is expected to continue as progress in non-hydrocarbon sectors,
particularly infrastructure, retail, sport and social development, continues toward achieving Qatar’s National Vision
2030.
Doha Cranes Breakdown
350
300
250
200
150
100
66 60
50
59
46
36 32
36 29
31 24
23
7
10 11
8
7
Commercial
Residential
Retail
Civic
Hotel
Recreation
Health
Education
May-15
66
59
36
36
31
23
10
7
Dec-14
60
46
32
29
24
7
11
8
Other
For further comments, please contact:
Sam Graham
Director
+974 3361 4958
[email protected]
Hanan Saliba
Business Development Manager
+971 5 6389 2887
[email protected]
rlb.com
ABOUT THE RLB CRANE INDEX
TM
Rider Levett Bucknall’s RLB Crane Indexª published biannually, tracks the number of cranes in the significant
centres of Abu Dhabi, Dubai and Doha. The count gives a simplified measure of the current state of the
construction industry’s workload in each of these locations. Each RLB office physically counts all fixed cranes
appearing on each city’s skyline twice yearly which provides the base information for the Index.