While Dubai's construction sector is currently enjoying a growth spurt, the industry does have a history of boom-and-bust cycles. A cautionary tale is UAE-based Arabtec Holding PJSC, which dissolved in 2020 under the weight of accumulated debts stemming from government spending cutbacks. Several construction companies established during the earlier construction frenzy in Dubai and the surrounding Persian Gulf region have similarly faced challenges, including project delays and dwindling profit margins.