UAE Construction Market Size
| Study Period | 2020-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 41 Billion |
| Market Size (2029) | USD 50.40 Billion |
| CAGR (2024 - 2029) | 4.26 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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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.
UAE Construction Market Trends
Rise in demand from tourism sector
The UAE 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 attack. In the next nine years, the UAE plans to launch 50 new economic initiatives to improve its competitiveness and attract USD 150 billion in foreign direct investment (FDI).
The country also embraces the Private Public Partnership (PPP) model, which provides efficient goods and services at a cheaper cost. In 2021, 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.
Construction Projects in Pipeline to Boost the Market
The outlook looks promising as the government continues 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 vital to the country's economic expansion, as the Emirate and GCC regions have substantial infrastructure needs. Thus, it seeks to build efficient transport and logistics networks and reliable, clean energy supplies.
Also, Israel and the UAE 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 after 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 sq mt by 2030.
The UAE 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 projects in execution, suggesting a shrinking market.
UAE Construction Industry Overview
The UAE construction market is highly competitive, with significant international players' presence. It presents opportunities for growth during the forecast period, which is expected to drive market competition further. With a few players holding a significant share, the market has an observable level of consolidation
UAE Construction Market Leaders
AE Arma-Electropanc
Aegion Corp.
Bechtel
CB&I LLC
Consolidated Contractors Group
*Disclaimer: Major Players sorted in no particular order
UAE Construction Market News
- September 2023: Hassan Allam Holding, one of Egypt’s leading construction companies, has announced its expansion into the United Arab Emirates (UAE) on the occasion of ‘Building Boundless Horizons: From Egypt to the UAE.
- August 2023: ADNOC Gas, the leading integrated gas processing company in the world, announced today that it has been awarded a contract for a total of AED 13.1 billion (USD 3.6 billion). This contract will enable ADNOC Gas to extend its gas processing facilities in the UAE by commissioning new gas processing facilities, which will provide an optimal supply to the RUWAIS Industrial Complex.
UAE Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
2.1 Analysis Methodology
2.2 Research Phases
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Current Economic and Construction Market Scenario
4.2 Technological Innovations in the Construction Sector
4.3 Insights into Supply Chain/Value Chain Analysis
4.4 Impact of Government Regulations and Initiatives on the Industry
4.5 Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Drivers
5.2 Restraints
5.3 Opportunities
5.4 Porter's Five Forces Analysis
5.4.1 Bargaining Power of Suppliers
5.4.2 Bargaining Power of Consumers/Buyers
5.4.3 Threat of New Entrants
5.4.4 Threat of Substitute Products
5.4.5 Intensity of Competitive Rivalry
6. MARKET SEGMENTATION
6.1 By Sector
6.1.1 Commercial Construction
6.1.2 Residential Construction
6.1.3 Industrial Construction
6.1.4 Infrastructure (Transportation) Construction
6.1.5 Energy and Utilities Construction
7. COMPETITIVE LANDSCAPE
7.1 Overview
7.2 Company Profiles
7.2.1 AE Arma-Electropanc
7.2.2 Aegion Corp.
7.2.3 Bechtel
7.2.4 CB&I LLC
7.2.5 Consolidated Contractors Group
7.2.6 Fluor Corp.
7.2.7 Jacobs
7.2.8 Al Futtaim Carillion
7.2.9 Joannou And Paraskevaides Limited (JP)
7.2.10 ACC Arabian Construction Company
7.2.11 Arabtec Constructions LLC
7.2.12 Abu Dhabi National Energy Co. PJSC
7.2.13 Emirtec
7.2.14 Sobha Engineering & Contracting LLC*
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
9. MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS
10. APPENDIX
11. DISCLAIMER
UAE Construction Industry Segmentation
The construction market includes several activities covering upcoming, ongoing, and growing construction projects in different sectors. It has but is 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, a market overview, market size estimation for crucial segments, emerging trends in the market segments, and market dynamics. The report also covers the impact of COVID-19 on the market.
The UAE Construction Market is segmented by sector into 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) for all the above segments.
| By Sector | |
| Commercial Construction | |
| Residential Construction | |
| Industrial Construction | |
| Infrastructure (Transportation) Construction | |
| Energy and Utilities Construction |
UAE Construction Market Research FAQs
How big is the UAE Construction Market?
The UAE Construction Market size is expected to reach USD 41 billion in 2024 and grow at a CAGR of 4.26% to reach USD 50.40 billion by 2029.
What is the current UAE Construction Market size?
In 2024, the UAE Construction Market size is expected to reach USD 41 billion.
Who are the key players in UAE Construction Market?
AE Arma-Electropanc, Aegion Corp., Bechtel, CB&I LLC and Consolidated Contractors Group are the major companies operating in the UAE Construction Market.
What years does this UAE Construction Market cover, and what was the market size in 2023?
In 2023, the UAE Construction Market size was estimated at USD 39.25 billion. The report covers the UAE Construction Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the UAE Construction Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
UAE Construction Industry Report
Statistics for the 2024 UAE Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. UAE Construction analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
