The UAE’s construction industry is projected to expand by 5% in real terms in 2026, supported by a rise in Foreign Direct Investment (FDI), growth in construction loans and an increase in oil sector activity. According to the Federal Competitiveness and Statistics Centre of the UAE, the construction value-added grew by 8.8% year on-year (YoY) in Q2 2025, after a Y-o-Y growths of 7% in Q1 2025 and 10.8% in Q4 2024. This growth is due to favorable interest rates, which in January 2026, was kept unchanged at 3.65% compared to the same rates in December 2025, according to the Central Bank of the United Arab Emirates (CBUAE). Moreover, according to the CBUAE, the total bank credit to construction and real estate to the residents stood at AED273.1 billion ($74.4 billion) at the end of Q3 2025, compared to AED264.8 billion ($72.1 billion) at the end of Q2 2025. The government aims to increase annual FDI inflow and reach AED238.7 billion ($65 billion) by 2031; it also aims to increase the share of FDI in total investments (domestic and foreign) to above 30% and FDI’s contribution to GDP to 8% by 2031. In a positive development, the government owned research company Emirates National Bank of Dubai (NBD) reported in early February 2026 that the Greenfield FDI in the country grew by 78% YoY, reaching AED121.9 billion ($33.2 billion) in 2025; this investment was made across 1,491 projects, and reflects an increase of 10.7% YoY, in terms of number of projects, compared to 2024.
Over the remainder of the forecast period,. The government has set a target to triple the share of renewable energy in the national energy mix by 2030 compared with 2023 levels, alongside a planned investment of AED150-200 billion ($40.8 54.5 billion) by 2030 to meet rising energy demand and system requirements. Consistent with these priorities, construction activities commenced in January 2026 on the the UAE’s construction industry is expected to register an annual average growth of 3.8% from 2027 to 2030, supported by sustained capital allocation across infrastructure, the oil and gas value chain, and the broader energy sectorKhazna Solar PV Project in Abu Dhabi, which is being developed with an installed capacity of 1.5GW. In addition, in early February 206, construction started on the AED2.6 billion ($700 million) UAE-Oman power link project. Sector momentum will further be supported by the Abu Dhabhi government’s AED240 billion ($65.4 billion) investment plan announced in December 2025; the plan is expected to be deployed across housing, transportation, healthcare, and education over the next seven to ten years.
Over the remainder of the forecast period,. The government has set a target to triple the share of renewable energy in the national energy mix by 2030 compared with 2023 levels, alongside a planned investment of AED150-200 billion ($40.8 54.5 billion) by 2030 to meet rising energy demand and system requirements. Consistent with these priorities, construction activities commenced in January 2026 on the the UAE’s construction industry is expected to register an annual average growth of 3.8% from 2027 to 2030, supported by sustained capital allocation across infrastructure, the oil and gas value chain, and the broader energy sectorKhazna Solar PV Project in Abu Dhabi, which is being developed with an installed capacity of 1.5GW. In addition, in early February 206, construction started on the AED2.6 billion ($700 million) UAE-Oman power link project. Sector momentum will further be supported by the Abu Dhabhi government’s AED240 billion ($65.4 billion) investment plan announced in December 2025; the plan is expected to be deployed across housing, transportation, healthcare, and education over the next seven to ten years.
The Construction in the UAE - Key Trends and Opportunities to 2030 (Q1 2026) report provides detailed market analysis, information, and insights into the UAE's construction industry, including:
- The UAE's construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the UAE's construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Report Scope
This report provides a comprehensive analysis of the construction industry in the UAE. It provides:
- Historical (2021-2025) and forecast (2026-2030) valuations of the construction industry in the UAE, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
- Assess market growth potential at a micro-level with over 600 time-series data forecasts
- Understand the latest industry and market trends
- Formulate and validate business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
