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Can Blockchain save construction in the GCC? B Y M I C H A E L L AW R E N C E , F O U N D E R O F B L O Q W O R K
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ven though the construction sector was classed as a vital sector of the economy and largely escaped any resultant lockdowns due to COVID-19, the industry has suffered from the effects of the pandemic. According to an analysis by MEED there was a 37% fall in contract awards in 2020 as compared to 2019. Those projects which have continued through the pandemic have been impacted by infections, labour transport bans, disinfection drives, and inefficiencies resulting from maintaining
safe distances. In 2021 MEED expects the market to recover to a value of $84.4bn from $67.2bn in 2020 but still short of $106.7bn in 2019. With infection rates falling in the UAE as vaccination rates rise, there is reason for optimism that construction could get back to some sort of normal. A report by the Construction Think Tank however reminds us that the sector was damaged before the pandemic. This has only exasperated an already desperate situation, caused by short-sighted standard practices resulting in endless
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disputes, and increased payment delays, putting businesses under severe financial stress or even the threat of bankruptcy. This was demonstrated in early 2021 with the demise of Arabtec. In many respects the construction sector in the UAE and the GCC in general, suffers the same problems as the industry does Worldwide. Projects are late, over budget, uncoordinated and have poor safety and quality records. The industry worldwide also contributes approximately 39% of all carbon emissions with 28% arising from WWW.CBNME.COM
