The analyst expects that the UAE’s construction industry will expand by 5.2% in real terms in 2025. This will be supported by public and private sector investment in the construction of major projects in the transportation, road, rail and housing sectors. The growth in the construction industry will also be supported by the government’s investments under the latest 2026 Budget. Indeed, in n July 2025, UAE revealed that planning is underway for the federal budget cycle 2027-29 focused on Artificial Intelligence (AI), accelerating national development and supporting the country’s long-term objectives. However, President Trump's newly announced tariffs are set to have significant repercussions for the industry performance.
The UAE’s construction industry is expected to register an annual average growth of 4% from 2026 to 2029, supported by investments in tourism, transport, industrial and housing projects. In June 2025, the government revealed that Abu Dhabi is currently managing 619 infrastructure projects with a total investment exceeding AED200 billion ($54.5 billion), focused on creating smart cities that enhance livability and sustainability across the country. Among the 619 projects underway, 65% are dedicated to housing and home preservation, while 18% support school construction and the remainder cover civil defense, police stations, museums, and tourism infrastructure. This comprehensive transformation reflects Abu Dhabi’s commitment to improve quality of life while supporting economic diversification and technological innovation in line with its country’s 2030 vision
The UAE’s construction industry is expected to register an annual average growth of 4% from 2026 to 2029, supported by investments in tourism, transport, industrial and housing projects. In June 2025, the government revealed that Abu Dhabi is currently managing 619 infrastructure projects with a total investment exceeding AED200 billion ($54.5 billion), focused on creating smart cities that enhance livability and sustainability across the country. Among the 619 projects underway, 65% are dedicated to housing and home preservation, while 18% support school construction and the remainder cover civil defense, police stations, museums, and tourism infrastructure. This comprehensive transformation reflects Abu Dhabi’s commitment to improve quality of life while supporting economic diversification and technological innovation in line with its country’s 2030 vision
The Construction in the UAE - Key Trends and Opportunities to 2029 (Q3 2025) 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.
Scope
This report provides a comprehensive analysis of the construction industry in the UAE. It provides:
- Historical (2020-2024) and forecast (2025-2029) 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
