UAE construction market grows to $94 billion in 2023: Report

UAE construction market grows to $94 billion in 2023: Report

15 March 2024, Middle East Economy

The UAE’s construction market continues to flourish, with a reported size of $94 billion in 2023, according to a recent report by GlobalData. The sector is projected to achieve an average annual growth rate of over 3 percent between 2025 and 2028. The report attributes that growth to increased investments in transport, renewable energy infrastructure, and advancements in the electric vehicle market.

Residential sector dominates

Residential construction claimed the largest share of the UAE’s construction market in 2023. Moreover, it is signaling continued growth momentum in the real estate sector during 2024. The project types in this sector include single-family housing and multi-family housing. Expectations for this year are optimistic, with the launch of qualitative infrastructure projects and investments from both the government and the private sector, which will sustain growth rates.

In 2023, the infrastructure construction sector in the UAE accounted for the second-largest market share. The project types in this sector include rail infrastructure, road infrastructure, and other infrastructure projects. GlobalData states that government investments in developing transport infrastructure between 2025 and 2028 will support the sector’s growth.

Key players

Arabtec Holding emerged as the leading contractor. Meanwhile, SNC-Lavalin Group Inc. led the consultancy sector in the UAE construction market in 2023. Domestic contractors maintain a significant share of the project pipeline, with UK-based firms dominating the foreign contractor landscape. Some leading contractors in the UAE construction market include Wade Adams, China State Construction Engineering Corp Ltd, and Al Shafar General Contracting LLC. Meanwhile, notable consultancy firms include SNC-Lavalin Group Inc, Khatib & Alami Holding, and National Engineering Bureau.

Latest developments

In January 2024, Aldar Properties announced a significant investment of AED1 billion to develop its UAE logistics real estate business across Abu Dhabi and Dubai. This investment in the UAE construction market highlights the growing focus on infrastructure development in the region.

Meanwhile, Azizi Developments, a prominent UAE-based construction company, initiated the construction of the Burj Azizi tower at Sheikh Zayed Road in Dubai. With a value of AED5 billion, the project includes the construction of a seven-star hotel, a vertical mall, an observation deck, and other facilities. Completion is expected by the end of 2028, showcasing the ambitious projects underway in the UAE construction market.

×

Hello!

Click one of our contacts below to chat on WhatsApp

× How can we help you?