The UAE Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)
Summary
The analyst expects that the UAE’s construction industry will expand by 4.2% in real terms in 2025. This will be supported by an improvement in economic conditions, alongside public and private sector investments in the construction of major projects in the transportation, energy, and housing sectors. The growth in the construction industry will also be supported by the government’s investments under the latest budget. The UAE’s government approved a federal budget for 2025 in October 2024. The budget has planned an overall expenditure of AED71.5 billion ($19.5 billion), which marks an increase of 11.6% compared to an expenditure of AED64.1 billion ($17.5 billion) in the 2024 Budget. As part of the 2025 Budget, the government plans to allocate AED27.9 billion ($7.6 billion) towards social spending, AED25.5 billion ($6.9 billion) towards the government affairs sector, AED2.6 billion ($708 million) on infrastructure and economic resources and AED2.9 billion ($789.7 million) for the financial investments sector. The construction industry’s growth is also supported by the 2024-27 Main Roads Development Plan launched by Dubai’s Roads & Transport Authority (RTA) in November 2024. This plan includes 22 infrastructure projects with an estimated cost of AED15.8 billion ($4.3 billion). However, increase in construction material prices and high inflation and interest rates, coupled with the US tariff of 10% on UAE goods are likely to weigh on the construction industry’s output over the short term.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. The government aims to attract new investments worth AED100 billion ($27.2 billion) in the country’s tourism sector by 2031 and attract 40 million hotel guests by that year, under the UAE Tourism Strategy 2031.
The Construction in the UAE - Key Trends and Opportunities to 2029 (Q2 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
