Inaugurating the two-day Arabian World Construction Summit here yesterday, she said real estate and construction sectors were poised to become the nation's new growth drivers.

"These two sectors will combine to contribute around 23 per cent in country's economy by 2010 from 16 per cent in 2006," she said.

Shaikha Lubna said that Abu Dhabi has earmarked a staggering 51 per cent of its budget for non-oil segments for construction projects in the next five years.

She urged the participants to come up with solutions to the challenges being faced by the construction industry, as more developers and investors continue to flock to the Gulf.

"There are currently Dh5.9 trillion of major projects being implemented across the GCC," she said.

The UAE's steel demand, the minister said, was expected to surge from five million metric tonnes in 2007 to 10 million in 2010.

"In order to secure resources are available to ensure project continuity, there is a need for strategies to be prepared," she said.

Over 250 construction industry executives, government officials and developers from Middle East attended the summit being organised by MEED.

Despite facing challenges of rising construction costs and lack of skilled manpower, construction executives in the region expect more business coming during 2008.

About 88 per cent of the executives polled at the summit in Abu Dhabi yesterday were bullish on business opportunities in the region. Only eight per cent participants of the summit saw business declining.

Out of 10 GCC and MENA countries, 89 per cent of the voters attending the summit declared the UAE as the most attractive market for the real estate business.