UAE Construction Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

The UAE Construction Market is Segmented by Sector into Commercial Constructions, Residential Constructions, Industrial Constructions, Infrastructure (Transportation) Constructions, and Energy and Utility Constructions. The report offers market size and forecast in value (USD billion) for all the above segments.

Market Snapshot

UAE Construction Market Overview
Study Period: 2018-2027
Base Year: 2021
CAGR: 4.69 %
UAE Construction Market Major Players

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Market Overview

The UAE construction market is expected to reach a value of USD 133.53 billion by 2027, registering a CAGR of 4.69% over the forecast period (2022-2027).

The construction market in Dubai has been impacted by COVID-19, leading to the halt of construction work. This factor has reduced net profits in the sector.

The country's government is also focusing on smart cities and planning to digitize up to 1,000 government services and install 2,000 Wi-Fi hotspots. Moreover, liberal trade policies in the country are attracting foreign investors and boosting the UAE construction market.

The construction sector is the essence of the UAE economy, and the industry is expecting rapid growth in the coming years. The construction industry plays an important role in the economic upliftment and development of the country.

Scope of the Report

The construction market includes a wide range of activities covering upcoming, ongoing, and growing construction projects in different sectors, which include but are not limited to geotechnical (underground structures) and superstructures in residential, commercial, and industrial structures, infrastructure construction (like roads, railways, and airports), and power generation and transmission-related infrastructure.

The report offers a complete background analysis of the construction industry, including an assessment and contribution of the sector to the economy, market overview, market size estimation for key segments, emerging trends in the market segments, and market dynamics. The report also covers the impact of COVID-19 on the market.

The market is segmented by sector (commercial construction, residential construction, industrial construction, infrastructure (transportation) construction, and energy and utility construction). The report offers market size and forecast for the UAE construction market in value (USD billion) for all the above segments.

By Sector
Commercial Construction
Residential Construction
Industrial Construction
Infrastructure (Transportation) Construction
Energy and Utilities Construction

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Key Market Trends

Tourism Construction in Dubai to Boost the Construction Sector

The United Arab Emirates has taken many steps to attract investment and foreigners to help the country recover from the effects of the COVID-19 outbreak. The International Monetary Fund (IMF) raised the country’s 2021 economic growth prediction to 3.1%, citing the Emirate's response to the COVID-19 outbreak. In the next nine years, the United Arab Emirates plans to launch 50 new economic initiatives to improve its competitiveness and attract USD 150 billion in foreign direct investment (FDI).

The country is also embracing the Private Public Partnership (PPP) model, which allows for the provision of efficient goods and services at a cheaper cost. In 2020, the government of Abu Dhabi unveiled an ambitious plan to buy over USD 2.72 billion in infrastructure partnership projects in various areas, including education, transportation, and municipal works. The PPP initiative was established as part of Abu Dhabi's USD 14 billion 'Ghadan 21' accelerator program to help the economy grow.

UAE Construction Market Forecast

Construction Projects in Pipeline to Boost the Market

The outlook looks promising as the government continues with its infrastructure plans through various government initiatives, such as the Energy Strategy 2050, the Sheikh Zayed Housing Programme, and the Dubai Tourism Strategy.

Infrastructure projects are a key part of the country’s economic expansion, as the Emirate and GCC region have huge infrastructure needs. Thus, it seeks to build efficient transport and logistics networks and reliable supplies of clean energy.

Also, Israel and the United Arab Emirates reached a historic deal to normalize ties, opening up investment opportunities. The countries agreed to develop a joint strategy to boost cooperation in the energy sector. Abu Dhabi aims to sustain long-term growth. In the long-term, investments in Abu Dhabi's commercial building sector will help offset an expected decline following Expo 2020. Abu Dhabi's share of the pipeline is estimated to grow in the coming years as the government prioritizes efforts to expand the Emirate's economic base beyond oil. Abu Dhabi's government aims to attract 7.9 million tourists annually by 2030 under the auspices of its Abu Dhabi 2030 Plan. Furthermore, the Emirate hopes to expand its retail and office space to 4 million and 7.5 million square meters by 2030.

The United Arab Emirates has about half of the pipeline value of Saudi Arabia, with USD 288 billion in planned projects. An additional concern for the UAE construction is that the USD 125 billion of future projects in the country is low compared to the USD 145 billion of projects in execution, suggesting a shrinking market.

UAE Construction Market Analysis

Competitive Landscape

The UAE construction market is highly competitive, with the presence of major international players. It presents opportunities for growth during the forecast period, which is expected to further drive market competition. With a few players holding a significant share, the market has an observable level of consolidation

Recent Developments

January 2022 - NMDC won a USD 354 million contract from AD Ports Group for Shamal Development marine works. The scope of work will include the dredging of 16.8 million cubic meters, a 1.2 km quay wall, and the construction of approximately a 3.8km long detached breakwater.

December 2021 - Depa PLC, the leading global interior solutions group, announced two project awards totaling over AED 150 million. Depa Interiors, Depa’s Middle-East key business unit specializing in the provision of interior solutions to the hospitality, residential, commercial, transport, and civil infrastructure sectors, secured a significant hospitality package in Jeddah, Kingdom of Saudi Arabia, for a well-known hospitality brand worth more than SAR 74 million (AED 73 million). Additionally, Depa Interiors secured a fit-out package for a prominent hospitality project within a high-rise mixed-use development in the center of Dubai, worth more than AED 78 million.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Economic and Construction Market Scenario

    2. 4.2 Technological Innovations in the Construction Sector

    3. 4.3 Insights into Supply Chain/Value Chain Analysis

    4. 4.4 Impact of Government Regulations and Initiatives on the Industry

    5. 4.5 Impact of COVID-19 on the Market

  5. 5. MARKET DYNAMICS

    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunities

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers/Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 By Sector

      1. 6.1.1 Commercial Construction

      2. 6.1.2 Residential Construction

      3. 6.1.3 Industrial Construction

      4. 6.1.4 Infrastructure (Transportation) Construction

      5. 6.1.5 Energy and Utilities Construction

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview

    2. 7.2 Company Profiles

      1. 7.2.1 AE Arma-Electropanc

      2. 7.2.2 Aegion Corp.

      3. 7.2.3 Bechtel

      4. 7.2.4 CB&I LLC

      5. 7.2.5 Consolidated Contractors Group

      6. 7.2.6 Fluor Corp.

      7. 7.2.7 Jacobs

      8. 7.2.8 Al Futtaim Carillion

      9. 7.2.9 Joannou And Paraskevaides Limited (JP)

      10. 7.2.10 ACC Arabian Construction Company

      11. 7.2.11 Arabtec Constructions LLC

      12. 7.2.12 Abu Dhabi National Energy Co. PJSC

      13. 7.2.13 Emirtec

      14. 7.2.14 Sobha Engineering & Contracting LLC*

    3. *List Not Exhaustive
  8. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

  9. 9. MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS

  10. 10. APPENDIX

  11. 11. DISCLAIMER

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Frequently Asked Questions

The UAE Construction Market market is studied from 2018 - 2027.

The UAE Construction Market is growing at a CAGR of 4.69% over the next 5 years.

The UAE Construction Market is valued at 101 Billion USD in 2018.

The UAE Construction Market is valued at 133 Billion USD in 2027.

AE Arma-Electropanc, Aegion Corp., Bechtel, CB&I LLC, Consolidated Contractors Group are the major companies operating in UAE Construction Market.

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