UAE Transportation Infrastructure Construction Market - Growth, Trends, COVID-19 Impact, Forecasts (2022-2027)

The UAE Transportation Infrastructure Construction Market is segmented by Mode (Roadways, Railways, Airways, Ports, Waterways). The report offers market size and forecasts for the UAE Transportation Infrastructure Construction Market in value (USD billion) for all the above segments.

Market Snapshot

uae transportation infrastructure construction market share
Study Period: 2022-2027
Base Year: 2021
CAGR: >5 %

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Market Overview

The UAE transportation infrastructure construction market is anticipated to register a CAGR of approximately 5% over the forecast period.

The COVID-19 outbreak significantly impacted the UAE construction sector in 2020. But the pandemic had left the least impact on infrastructure construction, which had a positive outlook in 2021. The UAE government started announcing new infrastructure development projects on Metro and Railways and plans to invest some USD billion in these projects. The consultant companies and government had also resumed working on delayed projects due to COVID-19. A worth of USD 13.61 billion was invested in the Eithad Rails project.

Surface Transport Master Plan (Abu Dhabi) - This plan was devised to deliver a sustainable transport system capable of supporting the capital city's economic, cultural, social, and environmental goals. This plan is expected to meet the needs and demands of residents, tourists, and businesses in the UAE capital. This project plans to promote cycling and walking. In this project, the vast public transport network is going to be powered by world-leading renewable technologies and fuels.

Dubai Autonomous Transportation Service - This service outlines the plan to transform 25% of total transport in Dubai into an autonomous mode by 2030. It is estimated that this service implementation will reduce transportation costs, lower accidents, and lower carbon emissions.

Scope of the Report

Transportation Infrastructure is referred to the network that enables the transportation system. Roads, railways, ports, and airports are all part of it. The market is segmented by Modes (Roadways, Railways, Airports, Ports, and Waterways). The report offers market size and forecasts for the UAE transportation infrastructure market in terms of value (USD billion) for all the above segments.

By Modes
Roadways
Railways
Airports
Ports
Waterways

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Key Market Trends

Increasing Population in the UAE

  • The rapid growth of the UAE population is a major factor accelerating transportation infrastructure construction investment. According to the World Bank, the UAE population in 2021 was 9,771,074, which was a 1.02% increase in population compared to 2020.
  • In 2020, 87.084% of the total UAE population shifted to urban areas. By 2027, the population is expected to reach 40% more than in 2020 to shift to urban places and settle there.
  • As the number of people living in urban areas grows, the growth of transportation infrastructure is also required to connect them in the urban areas in the United Arab Emirates.
  • In UAE's main urban seven cities, Nearly 11% of the total land of major urban cities is consumed by public spaces. These lands are important to relieve the pressures caused by the rising population in the cities.
  • As the United Arab Emirates is one of the developing countries, new transportation infrastructure is required to enable people to travel from rural to urban areas and vice-versa. Existing transportation infrastructure can also be expanded or improved to save the money required for new infrastructure construction and improve the environment and resilience.
  • Government and infrastructure construction companies can use new and emerging technologies to improve public services (such as mobility and well-being), communicate much more effectively with citizens, increase productivity, and solve environmental and sustainability issues.
uae transportation infrastructure construction market trends

Growing Public Transport Demand

  • The public transportation segment is expected to generate huge revenue in 2022, and it is also expected that there will be revenue growth in 2022 compared to 2021.
  • Around 56% population of the UAE prefers metro, mono, and tram to travel daily. Hence metro is the fastest and largest growing public transportation medium in the UAE because it is the cheapest compared to other traveling sources. The metro also takes less time to travel.
  • The second highest preferred transportation service by people is buses. Buses are mostly preferred by students and working women. Buses are considered a convenient traveling medium by the UAE people.
  • For the transportation infrastructure industry, the interconnectedness of the market is creating priceless opportunities to grow rapidly in the transportation sector.
uae transportation infrastructure construction market analysis

Competitive Landscape

The market is fragmented, and some of the key players are AE - Arma Electropanc, Bechtel, Consolidated Contractors Company, Al Jaber LEGT Engineering & Contracting ( ALEC ), and DUTCO Balfour Beatty LLC. Generally, the new transportation Infrastructure construction project is announced by the government, and then it is taken up by one of the top player companies. The increasing demand for construction infrastructure for transportation, mainly in metros, and sustainability in the region are expected to adopt and remain competitive.

Recent Developments

  • The UAE’s national railway network developer and operator Etihad Rail completed the work to connect Dubai and Abu Dhabi through a direct line on March 2, 2022. This direct line covers a length of 256 km. This project is headed by the UAE Railway Programme with an investment worth USD 13.61 billion. The rail line encompasses 29 bridges, 60 crossings, and 137 drainage channels.
  • The Royal Commission For Riyadh City - RCRC ( Riyadh Development Authority ) - Saudi Arabia announced the Riyadh Metro Project on February 24, 2022. This project involves the design and build (DB) contract for the construction of Riyadh Metro, Involving the construction of six lines running over a total distance of about 176 km comprising 85 stations.
  • On February 9, 2022, Royal Commission for Al- Ula ( Saudi Arabia ) announced Tramway Project - Al Ula Eco-Tourism. Under this project, the construction of a 46 km Low-carbon Tramway will take place. The purpose of taking up this project is to increase tourism in this region.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain/Supply Chain Analysis

    5. 4.5 Porter's Five Forces Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Impact of COVID - 19 on the Market

    7. 4.7 Government Regulations and Initiatives

    8. 4.8 Technological Innovations in the Construction Sector

    9. 4.9 Major Transportation Infrastructure Projects (Upcoming and On-going Projects)

  5. 5. MARKET SEGMENTATION ( MARKET SIZE BY VALUE )

    1. 5.1 By Modes

      1. 5.1.1 Roadways

      2. 5.1.2 Railways

      3. 5.1.3 Airports

      4. 5.1.4 Ports

      5. 5.1.5 Waterways

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Overview (Market Concentration and major players)

    2. 6.2 Company Profiles

      1. 6.2.1 AE - Arma Electropnac

      2. 6.2.2 Bechtel

      3. 6.2.3 Consolidated Contractors Company

      4. 6.2.4 Sobha Engineering & Contracting LLC

      5. 6.2.5 Al Jaber LEGT Engineering & Contracting ( ALEC )

      6. 6.2.6 DUTCO

      7. 6.2.7 khansaheb

      8. 6.2.8 Al Burj Engineering Consultants

      9. 6.2.9 National Contracting and Transport CO

      10. 6.2.10 Idroesse Infrastructure

      11. 6.2.11 Afcons Infrastructure Limited

      12. 6.2.12 Al-Futtaim Group

      13. 6.2.13 Enerco Transport & General Contracting LLC

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. APPENDIX

**Subject to Availability

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Frequently Asked Questions

The UAE Transportation Infrastructure Construction Market market is studied from 2022 - 2027.

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

AE-Arma Electropanc, Bechtel, Consolidated Contractors Company, Al Jaber LEGT Engineering & Contracting (ALEC), Dutco Balfour Beatty LLC are the major companies operating in UAE Transportation Infrastructure Construction Market.

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