According to the Tradearabia news report, the UAE construction equipment rental market revenues are projected to grow at a CAGR of 3.3 percent during 2018-24, according to a study.
The market has registered substantial growth as a result of increasing construction activities as well as the strengthening of commercial, hospitality, and residential sectors said the 6Wresearch report.
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, said the report titled "UAE Construction Equipment Rental Market (2014-2024), which provides in-depth analysis with 81 figures and 59 tables covered in more than 190 pages.
Projects such as the $37-billion Yas Island Development and the $22-billion Masdar City which are expected to be completed by 2025 would increase the demand for construction equipment, it said.
Moreover, Dubai's overall budget has been increased by nearly 20 percent in view of the upcoming World Expo 2020, from $13.1 billion (Dh47.31 billion) in 2017 to $15.5 billion (Dh56.6 billion) in 2018. Out of this budget, around 21 percent was allocated to infrastructure development. With increasing infrastructure spending, the rental equipment market would also witness growth over the coming years, it said.
According to Ravi Bhandari, assistant manager, 6Wresearch, earth moving equipment is the key revenue contributing segment in the UAE construction equipment rental market on account of their high utilization at construction sites.
"Other major equipment includes cranes and material handling equipment. The market for this equipment is expected to spur on account of infrastructure development in the country," Bhandari said.
Vikrant Tomar, research associate, research and consulting, 6Wresearch, said: "By regions, Dubai contributes highest revenue share in the 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.
"With leading players enlarging their fleets with new and innovative products, the market for construction equipment rental would grow over the next six years," Tomar added.
Some of the major companies in the UAE construction equipment rental market include Mohammed Abdulrahman Al-Bahar, Al Faris Equipment Rentals, Al-Mutawa, and Al Jaber Leasing Service.
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