UAE Commercial Construction Market is expected to register a 4.7% CAGR through 2030F
The UAE Commercial Construction Market
is rising due to robust infrastructure development, increasing demand for
office spaces, retail outlets, and mixed-use developments driven by economic
growth, urbanization, and major events like Expo 2020 Dubai during the forecast
period 2026-2030F.
According to TechSci Research report, “UAE Commercial Construction Market
- By Region, Competition Forecast & Opportunities, 2030F", 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. The Economic diversification
in the UAE is a key driver propelling the commercial construction market
forward. As part of the country’s Vision 2021 and Vision 2030, the UAE
government has committed to reducing its dependence on oil revenue and
transitioning toward a knowledge-based economy. This shift has led to
significant investments in non-oil sectors such as tourism, finance,
technology, and healthcare, all of which require robust commercial
infrastructure. The government’s proactive role in funding large-scale projects
such as business parks, mixed-use developments, and office complexes has
further fueled demand for commercial real estate. Additionally, the government
has introduced several initiatives to encourage foreign investment and ease of
doing business, such as long-term visas for expatriates, foreign ownership
laws, and simplified business licensing processes. These reforms make the UAE a
prime destination for international businesses, thus increasing the demand for
modern office spaces and commercial buildings. Moreover, the introduction of
mega projects like Dubai’s Expo 2020 (delayed to 2021 due to the pandemic) and
the UAE’s growing role as a global trade hub have driven the construction of
hotels, retail spaces, and business centers. As a result, the ongoing economic
diversification and government-driven initiatives continue to be pivotal in
sustaining the growth of the commercial construction market in the UAE.
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The Sharjah is emerging as the
fastest-growing region in the UAE Commercial Construction Market due to its
strategic location, economic diversification, and affordable development
opportunities. As the third-largest emirate, Sharjah is benefiting from its proximity
to Dubai, offering businesses a cost-effective alternative while maintaining
access to the infrastructure and markets of the UAE's commercial capital. This
location advantage is particularly attractive to industries such as
manufacturing, logistics, and retail, leading to a steady influx of commercial
developments, including office spaces, retail outlets, and industrial
facilities. The government’s focus on economic diversification has also spurred
growth in sectors like education, healthcare, and tourism, which has driven
demand for new commercial infrastructure. Sharjah's emphasis on sustainability
and smart city initiatives further aligns with the UAE’s broader vision for
urban development, attracting investment in modern, eco-friendly buildings. Additionally,
the emirate’s competitive real estate prices, lower operational costs, and
favorable business environment for both domestic and international companies
make it an appealing destination for entrepreneurs and investors seeking
affordable commercial spaces. Furthermore, Sharjah’s initiatives to enhance its
cultural and tourism offerings, such as the development of museums, heritage
sites, and entertainment complexes, have contributed to the growing demand for
hospitality and retail developments. The completion of major infrastructure
projects, such as the expansion of transportation networks and the Sharjah
International Airport, is also improving connectivity and facilitating the
movement of goods and services, making it easier for businesses to operate.
Consequently, Sharjah's combination of affordability, strategic location, and
government-backed development initiatives positions it as the fastest-growing
region in the UAE Commercial Construction Market.
In 2024, Based on Construction Type, New Construction
segment is the fastest-growing segment in the UAE Commercial Construction
Market due to a combination of strong economic growth, urbanization, and the
ongoing demand for modern infrastructure. As the UAE continues to diversify its
economy away from oil dependence, there is an increasing need for
state-of-the-art commercial spaces, including office buildings, retail outlets,
hotels, and mixed-use developments. New construction is especially prevalent in
cities like Dubai and Abu Dhabi, which are undergoing extensive redevelopment
to meet the requirements of a growing population and expanding businesses. The
country’s robust economic growth, combined with initiatives like Vision 2030,
has driven investments in both public and private sectors, leading to a boom in
the construction of new commercial real estate. Furthermore, the UAE’s growing
role as a global business hub, along with large-scale events such as Expo 2020
Dubai, has created significant demand for new, high-quality office spaces and
commercial properties to accommodate international businesses, tourists, and
investors. The increasing trend towards sustainable and smart buildings has
further propelled the new construction segment, as developers seek to meet
rising demand for energy-efficient, environmentally friendly buildings. The
completion of large-scale infrastructure projects such as new business
districts, airports, and transport networks also necessitates the construction
of commercial real estate to support these developments. Additionally, the
rising popularity of mixed-use developments that combine commercial,
residential, and leisure spaces has created substantial demand for new
construction. As a result, the need for modern, functional, and sustainable
buildings continues to drive the growth of the new construction segment in the
UAE Commercial Construction Market, ensuring its position as the
fastest-growing area.
Key market players in the UAE Commercial
Construction Market are: -
- Kabbani Construction Group
- Almabani General Contractors
- AlKifah Contracting Company
- Nesma & Partners Contracting
Company Ltd.
- AL-AYUNI Company
- Construction & Planning Co. Ltd.
- Contracting & Construction
Enterprises Ltd.
- Binladen Group Global Holding Company
- Al-Rashid Trading & Contracting
Co.
- Umm Al Qura for Development &
Construction Company
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“The UAE Commercial Construction Market presents
numerous opportunities, driven by the country’s continued economic growth,
diversification, and government initiatives. There is a growing demand for
sustainable and energy-efficient buildings, creating opportunities for
developers to integrate green technologies and eco-friendly materials into new
commercial projects. The rise of mixed-use developments and smart cities offers
promising prospects for constructing integrated office, retail, and residential
spaces that cater to modern lifestyles. Additionally, the booming tourism and
hospitality sectors, particularly in Dubai and Abu Dhabi, drive the need for
more hotels, resorts, and entertainment complexes. With the UAE positioning
itself as a global hub for business, technology, and finance, there is also
increasing demand for high-tech office spaces and flexible workspaces. The
government’s continued investment in infrastructure projects provides
significant opportunities for contractors and developers to engage in
large-scale commercial developments across various sectors.Top
of Form” said
Mr. Karan Chechi, Research Director of TechSci Research, a research-based global
management consulting firm.
“UAE Commercial Construction Market By
Sector (Healthcare & Medical Facilities, Educational Institutions,
Hospitality, Retail Outlets, Corporate Offices, Others), By Construction Type (New Construction, Renovation, Repair &
Maintenance), By End-User (Private, Public), By Region, Competition Forecast
& Opportunities, 2020-2030F”
has evaluated the future growth potential of UAE Commercial Construction Market
and provides statistics & information on market size, structure, and
future market growth. The report intends to provide cutting-edge market
intelligence and help decision makers take sound investment decisions. Besides
the report also identifies and analyzes the emerging trends along with
essential drivers, challenges, and opportunities in UAE Commercial Construction
Market.
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