UAE Construction Market Size

UAE Construction Market Analysis

The UAE Construction Market size is estimated at USD 41 billion in 2024, and is expected to reach USD 50.40 billion by 2029, growing at a CAGR of 4.26% during the forecast period (2024-2029).

• 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 a vital role in the economic upliftment and development of the country.
• The UAE is focusing on economic diversification to reduce its dependency on the oil and gas sector. They are adopting long-term growth strategies, due to which the construction industry is turning to prefabricated buildings.
• The UAE currently has various transportation infrastructure projects under construction, such as the USD 2.7 billion Sheikh Zayed double-deck road scheme. It also has unconventional transport projects, such as the USD 5.9 billion proposed hyperloop project between Dubai and Abu Dhabi.
• Smart cities are becoming increasingly popular as governments worldwide look for solutions to ensure more environmentally friendly and effective infrastructure development. To provide a better living to the residents, buildings, green areas, and public services must all remain connected to a single automated infrastructure. These shifts prompted the building and industrial industries to adopt new technology and seek more sustainable and automated alternatives.
• Moreover, with ongoing investment and technological advancements, the country is investing in diverse projects. These large-scale investments mainly aim to provide housing opportunities for lower-income groups, create new employment, and diversify the country's economy.
• The UAE's construction sector is expected to attain moderate post-pandemic growth during the upcoming years. The UAE government is focusing on investment in energy and infrastructure, including utilities, transportation, decarbonization, renewable and nuclear energy generation, and resolving the ongoing water scarcity. The significant commitment and resources of the region clue to the development of various mega-project opportunities for construction and engineering companies in the UAE.
• Recent significant projects announcement include the Abu Dhabi National Oil Company's (ADNOC), Al-Nouf seawater treatment plant, Dubai Municipality's plan to build a strategic sewerage tunnel, and other mega construction projects like the redevelopment of Mina Rashid in Dubai, and the Dubai International Financial Centre Expansion 2.0.