China State Construction Engineering Corporation’s outlook on the region’s construction sector for next year is mixed.
CSCEC expects next year’s projects backlog in the Middle East to match this year’s even as it suffers from some delayed payments from clients, a senior executive said yesterday.
The company has a backlog of Dh5 billion, said Yu Tao, the chief executive of CSCEC Middle East, on the sidelines of a business forum in Dubai.
“We have to secure similar amount of work [next year] to keep the ball rolling,” said Mr Yu.
“During 2009 to 2012 we experienced a lot of delays but recently the number of delays has been less and less.”
Contractors fear a difficult 2016 as project delays and a lack of new awards hurts their cash flow.
The UAE’s three listed contracting companies – Arabtec, Drake & Scull and Depa – have reported lower revenues this year. In fact, Arabtec and Drake & Scull have declared losses as a result of write- downs against previously booked work.
So far, CSEC has not experienced any project delays or clients seeking to renegotiate their contracts, Mr Yu said.
“The market is normal but not growing as fast as before. Generally it is still reasonable.”
The company is interested in infrastructure work, particularly highways, railways and the Dubai Water Canal project, he said.
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