The construction industry in the UAE is expected to grow by 3.5% in real terms this year, following an estimated annual growth of 9% in 2025. The industry’s growth in 2026 will be driven by the ongoing expansion in transport infrastructure and energy sectors, coupled with the government’s aim of increasing the nation's GDP from approximately AED1.7 trillion ($462.9 billion) in 2024 to AED3 trillion ($816 billion) by 2031. In April 2026, the government unveiled AED180 billion ($49 billion) in new industrial procurement opportunities to strengthen domestic manufacturing by localizing over 5,000 key industrial products by 2030. Despite these encouraging developments, the industry faces near-term headwinds due to regional geopolitical tensions, ongoing conflicts, supply chain and logistics disruptions, and heightened prices for construction materials and oil.
Over the remaining part of the forecast period, the UAE’s construction industry is expected to register an annual average growth of 4%, fuelled by a rise in foreign direct investments (FDI) across both oil and non-oil sectors. Earlier in 2025, the government has outlined ambitious targets, aiming to boost annual FDI inflows to AED238.7 billion ($77.2 billion), elevate the FDI share in total investments to over 30%, and increase FDI’s contribution to GDP to 8% by 2031. In January 2026, Dubai announced two landmark projects. The first involves an AED12.8 billion ($3.5 billion) expansion of Dubai Silicon Oasis, expected to generate more than 70,000 direct and indirect jobs over the next decade, contribute up to AED103 billion ($28 billion) to Dubai’s GDP, and attract AED30 billion ($8.2 billion) in new FDI by 2036. The second is the AED100 billion ($27.2 billion) expansion of the Dubai International Financial Centre (DIFC) with the creation of the DIFC Zabeel District.
Over the remaining part of the forecast period, the UAE’s construction industry is expected to register an annual average growth of 4%, fuelled by a rise in foreign direct investments (FDI) across both oil and non-oil sectors. Earlier in 2025, the government has outlined ambitious targets, aiming to boost annual FDI inflows to AED238.7 billion ($77.2 billion), elevate the FDI share in total investments to over 30%, and increase FDI’s contribution to GDP to 8% by 2031. In January 2026, Dubai announced two landmark projects. The first involves an AED12.8 billion ($3.5 billion) expansion of Dubai Silicon Oasis, expected to generate more than 70,000 direct and indirect jobs over the next decade, contribute up to AED103 billion ($28 billion) to Dubai’s GDP, and attract AED30 billion ($8.2 billion) in new FDI by 2036. The second is the AED100 billion ($27.2 billion) expansion of the Dubai International Financial Centre (DIFC) with the creation of the DIFC Zabeel District.
The Construction in the UAE - Key Trends and Opportunities to 2030 (Q2 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.
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
