The UAE Construction Market Report is Segmented by Sector Into Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (transportation) Construction, and Energy and Utility Construction. The Report Offers Market Size and Forecast for the UAE Construction Market in Terms of Value (USD) for all the Above Segments.

This statistic shows the revenue of the industry “construction“ in United Arab Emirates from 2012 to 2019, with a forecast to 2024. It is projected that the revenue of construction in United Arab Emirates will amount to approximately 37,0 billion U.S. Dollars by 2024.

The UAE Data Center Construction Market report segments the industry into By Infrastructure (By Electrical Infrastructure, By Mechanical Infrastructure, General Construction), By Tier Type (Tier-I and-II, Tier-III, Tier-IV), By End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Other End Users). Get five years of historical trends and future forecasts.

The Report Covers Infrastructure Construction Companies in UAE and it is segmented by Transport Mode (Railways, Roadways, Airports, and Waterways). The report offers the market sizes and forecast for the UAE transportation infrastructure construction market in value (USD billion) for all the above segments and the impact of COVID-19 on the market.

In 2021, the forecast value of construction output in the United Arab Emirates was worth 9.45 billion Emirati dirhams. Several projects and strategies are in the works to stimulate the construction industry, including the Energy Strategy 2050, the Sheikh Zayed Housing Program, and the Dubai Tourism Strategy.

This statistic shows the revenue of the industry “construction“ in Saudi Arabia by segment from 2012 to 2017, with a forecast to 2024. It is projected that the revenue of construction in Saudi Arabia will amount to approximately 56,2 billion U.S. Dollars by 2024.

The Report Covers Investment Analysis of Construction Industry in GCC Countries and the Market is Segmented by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utilities Construction) and Country (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates).

The Middle East construction industry, valued at approximately $XX million in 2025, is experiencing robust growth, projected to maintain a CAGR exceeding 3.00% from 2025 to 2033. This expansion is fueled by several key drivers. Significant government investments in infrastructure development, including transportation networks, housing projects to accommodate burgeoning populations, and large-scale tourism initiatives across the region are major contributors. Furthermore, the ongoing diversification of economies away from oil dependence is stimulating investment in commercial and industrial construction. The rising adoption of sustainable building practices and the increasing demand for advanced building materials, such as polymer and specialized metals, are also shaping the market's trajectory. Competition within the market is intense, with both regional and international players vying for market share. Challenges remain, however, including fluctuations in global commodity prices impacting material costs and potential labor shortages in certain skilled trades. The segmentation of the market highlights key opportunities. The residential sector, driven by population growth and urbanization, represents a substantial portion of the market. Similarly, the commercial sector is experiencing expansion due to increased business activity and the development of new business hubs. Material-wise, bitumen continues to hold a significant market share, but the increasing adoption of more durable and sustainable alternatives like polymers and specialized metals indicates a shift towards technologically advanced materials. The geographical spread across the Middle East showcases strong growth potential across various nations, with Saudi Arabia, the UAE, and Qatar leading the way due to ambitious national development plans. This positive outlook suggests that the Middle East construction sector is well-positioned for continued growth, albeit with challenges that require strategic navigation by businesses operating within the sector. Recent developments include: In November 2021, ASSENT, a fully-equipped and highly advanced steel manufacturing company in Dubai and the GCC Region, announced a new contract award from JGC Corporation, a global engineering company. ASSENT will supply 3,500 ton of fabricated steel to Basrah Refinery Upgrading Project in Iraq., In June 2021, Red Sea International Co., a Saudi Arabian public joint-stock company providing specialized prefabricated modular buildings for various real estate and industrial sectors, signed a SAR 52.93 million (USD 14.09 million) contract with Royal Commission for AlUla (RCU) to construct a turnkey housing complex in AlUla. The contract includes the design, construction, supply, and installation of 150 modular, high-quality, and fully-furnished accommodation units on a turnkey basis, which will serve as the housing complex for one of RCU's strategic projects in AlUla.. Notable trends are: Construction Activities Playing a Significant Role in the Construction Sheets Market.

Market Size and Growth: The construction market in the UAE has experienced steady growth, with a market size of USD 41 million in 2019 and a projected CAGR of 4.26% from 2025 to 2033. This growth is primarily driven by the country's expanding infrastructure, real estate development, and government spending on major construction projects. Key Trends and Drivers: The UAE's construction market is influenced by several key trends and drivers, including the government's Vision 2030 plan to transform the country into a regional hub for trade, tourism, and logistics. This plan has led to significant investment in infrastructure development, including transportation networks, airports, and urban development projects. Additionally, the country's robust economy and increasing population are driving demand for residential and commercial construction. Key drivers for this market are: The Demand for Commercial Spaces, Smart Cities and Sustainable Development. Potential restraints include: Economic Vulnerability to Oil Price Fluctuations. Notable trends are: Rise in Demand from the Tourism Sector.

In 2020, the value of construction contract awards for the building sector was worth over 13.7 billion U.S. dollars in the United Arab Emirates. According to projections for 2021, this will increase to 14.9 billion U.S. dollars for the buildings sector.

The UAE Construction Market is projected to grow at a CAGR of 6.04% during 2025-32, reaching a market value of approximately USD 108.76 billion in 2032.

The UAE construction market, valued at approximately $41 billion in 2025, exhibits robust growth potential, projected to expand at a compound annual growth rate (CAGR) of 4.26% from 2025 to 2033. This growth is fueled by several key drivers. Significant government investments in infrastructure projects, including transportation networks (roads, railways, airports), and large-scale developments like Expo City Dubai, are significantly boosting demand. The burgeoning tourism sector and a rising population further fuel the need for residential and commercial construction. Furthermore, diversification efforts within the UAE economy, pushing for sustainability and smart city initiatives, are creating opportunities for innovative construction technologies and materials. While challenges such as material price fluctuations and global economic uncertainties exist, the long-term outlook remains positive, driven by consistent government support and a strong focus on national development plans. The market segmentation reveals a diverse landscape. Commercial construction, driven by ongoing development of office spaces, shopping malls, and hospitality facilities, constitutes a significant portion of the market. Residential construction remains strong, fueled by population growth and increasing demand for housing. Industrial construction, vital for supporting the UAE's manufacturing and logistics sectors, also contributes substantially. Infrastructure development, particularly in transportation, remains a key driver. The Energy and Utilities sector is experiencing growth aligned with the UAE's commitment to renewable energy sources. Key players such as Bechtel, Jacobs, and local firms like Arabtec Constructions LLC are shaping the market dynamics through their project execution capabilities and innovative approaches. The competitive landscape is characterized by both international giants and established local contractors, fostering a dynamic environment. Recent developments include: November 2023: Dubai-based developer Wasl granted a construction contract worth AED 1.2 billion (USD 1.4 billion) to China State Construction Engineering Corp., a Beijing-based company, to construct The Island, a 26-acre development that is expected to be the first in the region to allow legal gaming. A total of 1,400 hotel rooms are planned for the development., September 2023: Hassan Allam Holding, one of Egypt's leading construction companies, announced its expansion into the United Arab Emirates on the occasion of 'Building Boundless Horizons: From Egypt to the UAE'., August 2023: ADNOC Gas, the world's leading integrated gas processing company, announced that it was awarded a contract for AED 13.1 billion (USD 3.6 billion). This contract will enable ADNOC Gas to extend its gas processing facilities in the United Arab Emirates by commissioning new facilities and providing an optimal supply to the RUWAIS Industrial Complex.. Key drivers for this market are: The Demand for Commercial Spaces, Smart Cities and Sustainable Development. Potential restraints include: The Demand for Commercial Spaces, Smart Cities and Sustainable Development. Notable trends are: Rise in Demand from the Tourism Sector.

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Construction Market Size 2025-2029

The construction market size is forecast to increase by USD 1,288.3 billion at a CAGR of 5.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the rise in residential and commercial infrastructure projects worldwide. This trend is fueled by increasing urbanization, population growth, and economic development in various regions. One key trend is the increasing adoption of green buildings, which are in the Innovator's stage in some regions and the Early Majority in others, leading to varying adoption rates and penetration levels. Furthermore, the integration of Artificial Intelligence (AI) in the construction sector is revolutionizing the industry, enhancing productivity, efficiency, and safety. As the industry evolves, companies must navigate this obstacle by exploring cost-effective solutions, such as shared equipment ownership models or renting, to remain competitive.
To capitalize on the market's potential, businesses should focus on innovation, collaboration, and operational excellence, ensuring they deliver high-quality projects on time and within budget. By addressing these challenges and embracing the opportunities presented by the market, companies can effectively position themselves for long-term success. Another key driver is the integration of Artificial Intelligence (AI) in the construction sector, which is revolutionizing the industry by improving efficiency, reducing costs, and enhancing safety.

What will be the Size of the Construction Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic market, securing permissions for building projects remains a crucial aspect of the industry. Cold storage facilities, a niche segment, continue to gain traction in the hospitality and leisure sectors, driven by innovative technologies and consumer demand. Smart cities are at the forefront of integrating sustainability regulations into commercial buildings, leading to increased usage of eco-friendly construction materials and raw resources. Site preparation and worker safety regulations are under constant scrutiny, ensuring compliance and adherence to industry standards.
The retail sector is also embracing technology, with the integration of automation and smart systems becoming increasingly common. Innovative technologies continue to shape the construction landscape, from 3D printing to modular construction, streamlining processes and reducing costs. Regardless, the industry's focus on sustainability and safety regulations ensures a responsible and forward-thinking approach to construction projects. However, the high cost of construction machinery poses a substantial challenge for market participants.

How is this Construction Industry segmented?

The construction industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Buildings construction
  Heavy and civil engineering construction
  Land planning and development
  Specialty trade contractors


End-user

  Private sector
  Public sector


Product

  Traditional
  Sustainable


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    China
    India
    Indonesia
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The buildings construction segment is estimated to witness significant growth during the forecast period. The market encompasses various sectors, with buildings construction being a prominent and evolving segment. This segment includes residential, commercial, and multifamily buildings, each contributing significantly to the market's growth. For instance, Egypt's ambitious project to develop a new administrative capital, the New Administrative Capital (NAC), is a notable example. Located approximately 45 kilometers east of Cairo, NAC is designed to alleviate overcrowding and pollution in the current capital. A key player in this transformation is the China State Construction Engineering Corporation (CSCEC), a Chinese state-owned enterprise. Meanwhile, smart cities are emerging as a significant trend in the construction industry.

Economic development and retail activities are integral to the market, with developers focusing on creating vibrant and sustainable communities. Civil engineering plays a crucial role in the development of infrastructure, including roads, bridges, and water supply systems. Climate change is a pressing concern, and the construction industry is responding by incorporating green and energy-efficient practices into their projects. Sustainability regulations are becoming increasi

UAE Transportation Infrastructure Construction Market size was valued at USD 12.84 Billion in 2024 and is projected to reach USD 18.65 Billion by 2032, growing at a CAGR of 4.8% from 2025 to 2032.

Key Market Drivers Government Investments in Transportation Projects: The UAE government has prioritized the development and improvement of its transportation infrastructure. One such example is the UAE Vision 2021, which intends to improve the transportation network to assist economic growth.

Growth in Tourism and International Events: The growing number of tourists and big international events, such as Expo 2020 Dubai, have increased the need for improved transit infrastructure. The UAE's Department of Tourism and Commerce Marketing predicted that Dubai alone welcome over 25 million people during Expo 2020, necessitating extensive changes to public transportation systems, highways, and airports to meet the increased demand.

After recording a contraction of 10.4% in 2020, GlobalData expects the construction industry to rebound this year, growing by 4.4%, and then register an annual average growth of 3.9% between 2022 and 2025. The hosting of upcoming Expo 2020 (1 October 2021-31 March 2022) has provided some positive support to the industry, while low base effects and pent-up demand will help to generate positive growth when compared to levels of 2020. Read More

UAE Commercial Construction Market was valued at USD 42.5 Billion in 2024 and is expected to reach at USD 56.49 Billion in 2030 and project robust growth in the forecast period with a CAGR of 4.7% through 2030

UAE Construction Market growth is driven by increasing infrastructure investments, urbanization, and technological advancements in construction methods.

The UAE data center construction market exhibits robust growth, projected at a Compound Annual Growth Rate (CAGR) of 18.10% from 2019 to 2033, reaching a market size of $1.6 billion in 2025. This expansion is fueled by several key drivers. The burgeoning digital economy in the UAE, driven by e-commerce, fintech, and the increasing adoption of cloud computing, necessitates substantial investment in data center infrastructure to meet the growing demand for data storage and processing capacity. Government initiatives promoting digital transformation and smart city projects further accelerate market growth. Furthermore, the UAE's strategic location as a regional hub for technology and telecommunications, coupled with its robust regulatory environment and world-class infrastructure, attracts significant foreign investment in data centers. The market is segmented by infrastructure (electrical and mechanical), tier type, and end-user industries. The electrical infrastructure segment dominates, encompassing power distribution solutions (PDUs, transfer switches, switchgear), power backup solutions (UPS, generators), and associated services. Mechanical infrastructure, including cooling systems (immersion cooling, direct-to-chip cooling, etc.) and racks, is also crucial for ensuring optimal data center functionality. Key players such as Jacobs Engineering Group, AECOM, and Arup Gulf Limited are actively involved in these projects, leveraging their expertise in design and construction to shape the evolving data center landscape. Significant growth within specific market segments is anticipated. The increasing adoption of advanced cooling technologies like immersion cooling and direct-to-chip cooling will drive demand within the mechanical infrastructure segment. The banking, financial services, and insurance (BFSI) sector, along with the IT and telecommunications sector, remain primary end-users, contributing significantly to market growth. The government and defense sectors are also expanding their data center footprint to support national security and digital governance initiatives. However, challenges such as the high initial investment costs associated with data center construction and the need for skilled labor could potentially restrain market growth, although these are offset by the significant long-term returns and strategic importance of robust data infrastructure in the UAE's economy. Future growth will likely be influenced by the continued expansion of 5G networks, the increasing adoption of artificial intelligence (AI) and machine learning (ML) technologies, and the growing importance of data security and resilience. Recent developments include: June 2024: Freshworks Inc. unveiled a new data center in the UAE, leveraging Amazon Web Services (AWS). This move solidifies Freshworks' dedication to fostering innovation in the Middle East and Africa (MEA). The initiative aims to streamline access for businesses in the region, enabling them to fully utilize Freshworks' advanced, AI-driven customer and employee service offerings.May 2024: Khazna Data Center announced plans to establish a new data center in Abu Dhabi, UAE. Teaming up with the Abu Dhabi Investment Office (ADIO), the company is slated to construct this facility in the Mafraq industrial area. Situated on land owned by the government, the data center will kick off with a 30MW capacity and is on track to go live by mid-2026.. Key drivers for this market are: 4., Increasing Investments in Cloud Technologies, Fueled by the Growing Adoption of AI, are Driving the Demand for Data Centers in the UAE Market4.; The UAE Government's Digital Initiatives have Fueled a Surge in the Demand for Data Centers. Potential restraints include: 4., Increasing Investments in Cloud Technologies, Fueled by the Growing Adoption of AI, are Driving the Demand for Data Centers in the UAE Market4.; The UAE Government's Digital Initiatives have Fueled a Surge in the Demand for Data Centers. Notable trends are: The IT and Telcom Segment is Expected to Gain Significant Share in the Market.

The UAE data center construction market is expected to reach a value of XX million by 2033, exhibiting a CAGR of 6.00% during the forecast period of 2025-2033. The market growth is primarily driven by the increasing demand for cloud and data storage services, coupled with the growing adoption of digital technologies across various industries. Government initiatives to promote the adoption of smart city technologies and the establishment of data protection regulations are further contributing to the growth of the market. The market is segmented based on infrastructure, tier type, end user, and region. The electrical infrastructure segment held the largest market share in 2025, owing to the increasing demand for reliable and efficient power distribution solutions for data centers. Tier-III data centers are expected to witness significant growth during the forecast period due to their ability to provide high levels of redundancy and uptime. The IT and telecommunications sector accounted for the largest share of the market in 2025, owing to the increasing adoption of cloud and data storage services by businesses. The Middle East & Africa region is expected to exhibit the highest growth rate during the forecast period, driven by government initiatives to promote the development of data centers and the increasing adoption of digital technologies. The burgeoning digital landscape in the United Arab Emirates (UAE), driven by the government's vision for a technology-driven economy, is fueling the demand for robust data center infrastructure. With the rapid adoption of cloud computing, big data analytics, and artificial intelligence (AI) applications, the UAE data center construction market is poised for significant growth in the coming years. This report provides a comprehensive analysis of the market, highlighting key trends, industry dynamics, and growth opportunities. Recent developments include: May 2021: Dubai Electricity and Water Authority (DEWA) inaugurated six electricity transmission substations in Dubai. The project was completed with an investment of AED 1.1 billion. The substations include a 400 kilovolt (kV) substation at the Mohammed bin Rashid Al Maktoum Solar Park and five 132 kV substations in other areas in Dubai., December 2020: The United Arab Emirates commissioned its first Barakah Nuclear Energy Plant, which reached 100% of the reactor power capacity for Unit 1 of the facility during testing.. Key drivers for this market are: 9.1 Rising Adoption of Renewable Energy Sources9.2 Increase in 5G Deployments Fueling Edge Data Center Investments9.3 Smart City Initiatives Driving Data Center Investments. Potential restraints include: 10.1 Security Challenges in Data Centers10.2 Location Constraints on the Development of Data Centers. Notable trends are: BFSI to have significant market share.

The GCC Advanced Building Materials market, valued at approximately $2.8 billion in 2025, is projected to experience robust growth, driven by significant infrastructure development and a burgeoning construction sector across the Gulf Cooperation Council (GCC) nations. This expansion is fueled by sustained government investments in mega-projects, including ambitious smart city initiatives and large-scale infrastructure upgrades. The increasing adoption of sustainable and energy-efficient building practices further propels market growth, with a strong preference for green building materials and technically advanced solutions designed to enhance thermal performance and reduce energy consumption. Key material segments such as advanced cement and concrete, cross-laminated timber, and structural insulated panels are experiencing particularly high demand, reflecting the region's focus on modern, durable, and environmentally conscious construction. The market's competitive landscape features both international giants and regional players, leading to innovation and varied product offerings. While challenges such as material cost fluctuations and potential supply chain disruptions exist, the long-term outlook for the GCC Advanced Building Materials market remains positive, supported by continuous economic growth and ambitious national development plans. The 7.29% CAGR projected for the forecast period (2025-2033) indicates a substantial increase in market value. This growth trajectory is anticipated to be influenced by several factors, including population growth, urbanization, and a focus on enhancing building codes to ensure higher safety and sustainability standards. The segmentation of the market, with distinctions based on application (building construction versus infrastructure), material type, and specific materials, allows for a granular understanding of market dynamics and investment opportunities within this rapidly expanding sector. Specific countries like Saudi Arabia and the UAE are expected to lead market growth due to their large-scale development projects and proactive government policies supporting the construction industry. The continued diversification of the GCC economies and the focus on attracting foreign investment will likely further contribute to market expansion in the coming years. Recent developments include: August 2023: Kingspan, a prominent player in advanced building materials, revealed its collaboration with AquaTrace with the aim of delivering intelligent roofing solutions. AquaTrace specializes in cutting-edge waterproofing monitoring technology, while Kingspan Insulation brings its expertise in high-performance flat roof insulation for comprehensive roof systems., In January 2023, Saint-Gobain inaugurated the Al MUNTADA knowledge space in Masdar City. Al Muntada serves as a showcase for the company's innovative building materials. Among the featured materials are the lightweight façade system, sustainable decorative flooring systems by Weber, internal partitions and ceilings from Gyproc, pre-insulated lightweight HVAC ducts by Kimmco-Isover, and a host of other pioneering solutions.. Notable trends are: Expanding construction sector in GCC.