UAE Transportation Infrastructure Construction Market Size
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
UAE Transportation Infrastructure Construction Market Analysis
The UAE transportation infrastructure construction market is expected to register a CAGR of more than 5 % during the forecast period (2023 - 2028).
- COVID-19 impacted the transportation infrastructure construction market. The impact is in direct and indirect ways, such as reduction in transit services, slowing down of construction works due to social distancing, and disrupted supply chain. However, the sector is recovering and focusing on developments.
- The UAE boasts one of the most advanced transport and infrastructure facilities in the region. From roads to the metro to marine transport, it is home to world-class amenities that support the growth of the economy and the development of business and tourism in the country. Moreover, the transportation infrastructure facilitates the movement of public goods in the country.
- Furthermore, an increase in urban mobility creates demand for the construction of more transportation projects. The transportation infrastructure is driven by modernization, which involves reforming railways and improving and rebuilding roads, bridges, airports, etc. This factor resulted in uninterrupted transit and freight services directly contributing to the region's economy.
- UAE in September 2022, announced a 10-year future development plan for the federal road sector, valued at approximately AED 5 billion (USD 1.36 Billion). Announced by the Ministry of Energy and Infrastructure, the plan aims to meet the needs of the various regions of the UAE, keeping pace with the rapid growth witnessed by the country, enhancing the quality of life, and building infrastructure. Moreover, the 10-year plan will include the development of a network of arterial roads linking the regions of the country to each other.
- Last year the Crown Prince of Ajman, Sheikh Ammar bin Humaid Al Nuaimi, announced an AED102 million (USD 27.77 million) package of infrastructure development projects in the northern emirate. The growth of this market will be driven by the government's effort to build a sustainable transport system. The Traffic and Transportation Plan 2030 is expected to accelerate new public-private partnership projects in the sector over the forecast period.
UAE Transportation Infrastructure Construction Market Trends
This section covers the major market trends shaping the UAE Transportation Infrastructure Construction Market according to our research experts:
Growing Urbanization is Driving the Growth of the Market
Growing transportation infrastructure investment is supported by the rapid growth in the urban population. As per the World Bank, in 2021 the share of the urban population of UAE reached 87.3%. The current population of the United Arab Emirates is nearly 10 million. According to projections, the population will grow by another million within the coming 5 years.
As the share of the urban population grows, the growth of transport infrastructure is also required to connect them to the urban areas in UAE. 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.
Existing infrastructures in developed countries must be improved to improve resilience, improve the environment, and reduce maintenance costs. The government of UAE is making more investments in transportation infrastructure to cater transportation needs of the urban population. This is creating lucrative opportunities in the infrastructure segment of the UAE. Hence growing urban population boosts the revenue growth of the UAE transportation infrastructure construction market.
Government Initiatives for Infrastructural Development to Boost the Market
Investments are being made to increase transportation infrastructure activities and improve existing infrastructures, such as extending the roads and rails, planning new construction across the country, and improving damaged structures.
Transportation and road infrastructure development continues to be important across the country. In the year 2021, the total length of roads in Dubai is 18.5 thousand kilometers and the government is making more initiatives to increase the road network in the future. The UAE has several transportation and road infrastructure projects currently in the pipeline, such as the USD 2.7 billion Sheikh Zayed double-deck road scheme. There are also more unconventional transport projects, such as the USD 5.9 billion proposed hyperloop project between Dubai and Abu Dhabi.
The Shindagha Corridor project, led by Dubai's Roads and Transport Authority (RTA), involves the development of a 13km long road network along Sheikh Rashid Street, Al Mina, Al Khaleej, and Cairo streets in Dubai. The project has been broken down into five different phases, including a 295m bridge, with a total investment of AED 5 billion (USD 1.37 billion). All five phases are expected to be completed by 2027.
Etihad Rail, the UAE's national rail project, began in 2016 to connect 11 of the country's key centers of trade. The project is part of the larger UAE Railway Programme, which aims to enhance transportation across the seven emirates. It will be one of the largest single railway projects implemented in the world and forms the UAE component of the Gulf Cooperation Council (GCC) rail network. The railway infrastructure will become a vital part of the USD 100bn Gulf Cooperation Council (GCC) rail program. The GCC railway network will connect the UAE with Saudi Arabia, Qatar, Kuwait, Bahrain, and Oman and is expected to be ready by 2024. The railway is a total of 1,200km it has been estimated that it will require 47 million hours of work by 13,300 workers to be completed with an investment of AED 40bn (USD11bn).
Hence, the government initiatives for infrastructural development in UAE will boost the demand for the transportation infrastructure construction market during the forecast period.
UAE Transportation Infrastructure Construction Industry Overview
The report covers major players operating in the UAE Transportation Infrastructure Construction Market. The UAE transportation infrastructure construction market is moderately consolidated, as most of the projects are owned by major players in the industry. Hence, small-scale players have less scope. Some of the major players include ALEC Engineering & Contracting LLC, Al-Futtaim Group, Consolidated Contractors Company, Khansaheb, National Contracting and Transport CO., etc., Major companies in the market have adopted collaboration as their key developmental strategies to offer better products and services to customers in the UAE transportation infrastructure construction market. Moreover, increased infrastructure spending, new government initiatives to drive investment, and new project announcements are expected to drive overall growth, which may attract more investors' attention in UAE.
UAE Transportation Infrastructure Construction Market Leaders
Al-Futtaim Group
ALEC Engineering & Contracting LLC
Consolidated Contractors Company
khansaheb
National Contracting and Transport CO
*Disclaimer: Major Players sorted in no particular order
UAE Transportation Infrastructure Construction Market News
- August 2022: Dubai's Roads and Transport Authority (RTA) reported that Al Manama Street's phased improvements were 67% finished. The project is within the domain of the recently opened Dubai-Al Ain Road Improvement Project. The construction includes a new traffic corridor that links Al Meydan Street with Al Manama Street through a bridge of 4 lanes in each direction with a capacity of 8000 vehicles per hour per direction. The project also included the construction of slip lanes to link with the Dubai-Al Ain Road. The construction includes increasing the capacity of the existing road by transforming the first three intersections on Al Manama Street with Aden Street, Sanaa Street, and Nad Al Hamar Street into signalized surface junctions.
- March 2022: The UAE's national railway network developer and operator Etihad Rail completed the work to connect Dubai and Abu Dhabi through a direct line. 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.
UAE Transportation Infrastructure Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Economic and Construction Market Scenario
4.2 Technological Innovations in the industry
4.3 Government Regulations and Initiatives on the Industry
4.4 Major Transportation Infrastructure Projects (Upcoming and On-going Projects)
4.5 Impact of the COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.2 Market Restraints/Challenges
5.3 Market Opportunities
5.4 Industry Attractiveness - Porter's Five Forces Analysis
5.4.1 Threat of New Entrants
5.4.2 Bargaining Power of Buyers/Consumers
5.4.3 Bargaining Power of Suppliers
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Transport Mode
6.1.1 Railways
6.1.2 Roadways
6.1.3 Airports
6.1.4 Waterways
7. COMPETITIVE LANDSCAPE
7.1 Overview (Market Concentration and Major Players)
7.2 Company Profiles
7.2.1 ALEC Engineering & Contracting LLC
7.2.2 Al-Futtaim Group
7.2.3 Consolidated Contractors Company
7.2.4 Khansaheb
7.2.5 National Contracting and Transport CO
7.2.6 Idroesse Infrastructure
7.2.7 ASGC Construction
7.2.8 Enerco Transport & General Contracting LLC
7.2.9 Dorsch Gruppe DC Abu Dhabi
7.2.10 Al Naboodah Construction Group (ANCG)*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
UAE Transportation Infrastructure Construction Industry Segmentation
Transportation Infrastructure refers to the framework that supports the transport system. It consists of fixed installations including roads, railways, airways, waterways, canals, and pipelines, and terminals such as airports, railway stations, bus stations, and trucking terminals.
The UAE Transportation Infrastructure Construction report covers market insights, such as market dynamics, drivers, restraints, opportunities, technological innovation, its impact, porter's five forces analysis, and the impact of COVID-19 on the market. In addition, the report also provides company profiles to understand the competitive landscape of the market.
The UAE Transportation Infrastructure Construction Market is segmented by Transport Mode (Railways, Roadways, Airports, and Waterways). The report offers the market sizes and forecast for the UAE transportation infrastructure construction market in value (USD billion) for all the above segments.
| By Transport Mode | |
| Railways | |
| Roadways | |
| Airports | |
| Waterways |
UAE Transportation Infrastructure Construction Market Research FAQs
What is the current UAE Transportation Infrastructure Construction Market size?
The UAE Transportation Infrastructure Construction Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)
Who are the key players in UAE Transportation Infrastructure Construction Market?
Al-Futtaim Group, ALEC Engineering & Contracting LLC, Consolidated Contractors Company, khansaheb and National Contracting and Transport CO are the major companies operating in the UAE Transportation Infrastructure Construction Market.
What years does this UAE Transportation Infrastructure Construction Market cover?
The report covers the UAE Transportation Infrastructure Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UAE Transportation Infrastructure Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Transportation Infrastructure Construction Industry Report
Statistics for the 2024 UAE Transportation Infrastructure Construction market share, size and revenue growth rate, created by Mordor Intelligenceā¢ Industry Reports. UAE Transportation Infrastructure Construction analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
