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Cost of building materials in UAE set to increase

By , 2008-03-08 12:00:00

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Gulfnews reported that UAE builders would have to pay more for building materials as import costs from top supplier China have increased and sea freight rates are rising.

China, which supplies an estimated one third of materials such as timber and steel to the country, has cut the rebate it provides to its construction material exporters. At the same time, freight rates for containers from East Asia to Dubai have risen about 85% since May 2007.

Mr Rizwan Sajan chairman of building materials company Danube said that "We are expecting 12% to 15% increase in shipment costs between now and September." Mr Sajan said the Chinese government has reduced the subsidy it provides to timber exporters from 11% to 5% since the beginning of July 2007.

Chinese steel exporters no longer enjoy 8% price support since April and factory owners of sanitary wares and hardware have seen their subsidy being cut from 13% to 8%.

Mr Mohammad Fakhouri GM of construction firm Oger Dubai said that rising costs were a concern for all builders in the UAE.

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