Maldives Monetary Authority (MMA) in their quarterly economic review has confirmed the island nation’s construction industry as a whole showed promising growth in the first half of 2018.
According to Maldives central bank’s quarterly economic review, mega projects in infrastructural development including Velana International Airport’s development, Sinamale’ Bridge construction, Hulhumale’ second phase development along with Dharumavantha Hospital project and Male’ City’s redevelopment contributed to the exponential growth in the industry.
Additionally, building and construction projects handled by private construction firms and contractors as well as the increase of infrastructural development in the resort industry also factored into the growth of the construction industry.
Bank credit to the sector and construction-related imports reflected a notable surge during the first half of the year. Commercial bank credit to the construction sector showed an annual growth of 23% mainly due to the growth in loans for residential housing, new resort development and construction of guesthouses, according to MMA’s review.
Looking at the up-surge in the construction related imports in the first half of the year, MMA reports the sector showed an annual growth of 51% directly translated as USD 120.2 million.
The reason for this growth is due to the increase in the volume of the base metal and articles of base metals which includes cement, aggregates and wood as well as articles of wood.
While the entire construction related imports showed a 51% growth, the imports specifically for the tourism sector accounted for 35% of the total imports. The tourism sector exclusive construction related-imports showed the largest growth with an increase of USD54.8 million in annual terms.
Private sector in the construction field carried the highest share at 48% and grew by USD36.8 million. Construction related imports procured by the government increased by USD33.5 million.
As per the central bank’s survey of the sector’s future prospect, the construction sector shows promise and further growth as MMA expects an increase “in the level of the construction activity” during the third quarter of 2018.