According to a 6Wresearch report, the UAE construction equipment (CE) rental market has registered substantial growth as a result of increasing construction activities as well as strengthening commercial, hospitality and residential sectors. Construction sector growth is attributed to increased infrastructure spending for World Expo 2020. Further, to avoid the cost of purchasing new equipment and to evade maintenance expenses, construction companies in UAE are opting for renting the equipment.
The UAE CE rental market revenues are projected to grow at a CAGR of 3.3 per cent during 2018-24. Projects such as $37-billion Yas Island Development and $22-billion Masdar City which are expected to be completed by 2025 would increase the demand for construction equipment. Moreover, Dubai’s overall budget has been increased by nearly 20 per cent for upcoming World Expo 2020 from $13.1 billion (AED 47.31 billion) in 2017 to $15.5 billion (AED 56.6 billion) in 2018. Out of this budget, around 21 per cent was allocated to infrastructure development. With increasing infrastructure spending, the rental equipment market would also witness growth over the coming years.
Ravi Bhandari, Assistant Manager, 6Wresearch, said, “Earthmoving equipment is the key revenue contributing segment in the UAE construction equipment rental market on account of their high utilisation at construction sites.”
Vikrant Tomar, Research Associate, Research and Consulting, 6Wresearch, highlights, “By regions, Dubai contributes the highest revenue share in UAE construction equipment rental market and is projected to maintain its dominance during the forecast period on the back of massive investment in hospitality and transportation sectors under Dubai’s tourism vision 2020.