Major manpower shortfall in Dubai’s construction and real estate sectors
Dubai's construction and real estate sectors are facing a combined manpower shortfall of up to 500,000 heading into 2015, according to the `Workforce Planning Study’ commissioned by Dubai International Academic City (DIAC).
Conducted by Deloitte, the study revealed that building and construction project management skills are most lacking among senior levels, according to 43 percent of companies surveyed. Likewise, 54 percent of companies believe that design engineering skills are lacking among mid-level professionals, followed by civil engineering skills. Among entry-level employees, health and safety skills were identified as most lacking.
Real estate project financing, property pricing and appraisal, real estate evaluation, property market analysis and brokerage are also cited as key skills in demand. The resurgent construction market has also provided a need for skilled trades such as HVAC, plumbing and electrical engineering.
The study is aimed to help empower students and graduates by providing a better understanding of employment prospects in the UAE market. Similarly, it should inform employers about where there are potential skills gaps, enabling them to make decisions around recruitment and training programmes.
Contributors to the economy
The real estate and construction sectors contributed 21 percent of Dubai’s growth in Q1, 2014, according to the `Dubai Economic Outlook’ report and accounts for 7.8 percent of overall GDP. Current forecasts show that Dubai expects to add 100,000 new residents per year, according to the Dubai Statistics Centre and annual tourist arrivals are expected to more than double to at least 20 million under Tourism Vision 2020.
Dubai Expo 2020
Dubai winning the bid to host Expo 2020 is expected to be a major catalyst for development across all segments. HSBC estimates that about 45,000 new hotel rooms would be needed for the event, at a cost of more than AED 31 bn. The total infrastructure works is estimated at AED 12.54 bn, producing a large demand for talent and skilled workers in the UAE for job opportunities.
Oxford Economics estimates that more than 277,000 job opportunities would be created in the UAE between 2013 and 2021, with the majority of new jobs being in the construction and tourism sectors.
Ayoub Kazim, managing director of DIAC and Dubai Knowledge Village said: ”The growth in the property and construction sectors is driven by strong economic and demographic fundamentals and robust government spending. Yet, high attrition rates among the expatriate labour force and lack of skilled labour are causing an increased labour cost, which amounts to up to 25 percent of construction costs.”
