Increased Investments in Transport and Renewable Energy Infrastructure Driving Growth in UAE Construction Sector

The UAE construction market is on an upward trajectory, with increased investments in transport and renewable energy infrastructure driving growth in the sector. According to a recent report by GlobalData, the market size reached $94 billion in 2023, with a projected average annual growth rate of over 3 percent between 2025 and 2028.

The residential sector continues to dominate the market, with a strong focus on single-family and multi-family housing projects. The real estate sector is expected to maintain its growth momentum in 2024, supported by qualitative infrastructure projects and investments from both the government and the private sector.

Infrastructure construction also holds a significant share of the market, with government investments in transport infrastructure set to boost growth in the sector. Key players in the UAE construction market include Arabtec Holding, SNC-Lavalin Group Inc., Wade Adams, and China State Construction Engineering Corp Ltd.

In January 2024, Aldar Properties announced a major investment of AED1 billion to develop its logistics real estate business in Abu Dhabi and Dubai. Additionally, Azizi Developments has initiated the construction of the Burj Azizi tower in Dubai, a AED5 billion project that includes a seven-star hotel, vertical mall, observation deck, and other facilities.

The UAE construction market is buzzing with activity and ambitious projects, showcasing a bright future for the sector. Stay tuned for more updates on real estate developments in the region.