UAE construction market is anticipated to grow at
a good pace during the forecast period. Government interest in
promoting tourism in the nation is growing. Burj Jumeirah, World Islands, the
Red Line Extension of the Dubai Metro, and Sahel Al Emarat are a few of the
country's big ongoing projects.
The worldwide construction industry's income
is anticipated to increase consistently during the coming years. It is expected
to grow by a factor of two during the course of the next twenty years. In 2020,
there were 6.4 trillion dollars in the building sector; by 2030, that figure is
predicted to rise to 14.4 trillion.
The construction market includes a wide range of activity that covers
upcoming, ongoing, and growing construction projects in different sectors such
as residential, commercial, and industrial structures, as well as
infrastructure construction, including roads, railways, and airports, and power
generation and transmission related infrastructure.
Construction
Projects in Pipeline to Boost the Market
As the government continues to
implement its infrastructure plans through a number of government programs,
including the Energy Strategy 2050, the Sheikh Zayed Housing Programme, and the
Dubai Tourism Strategy, the prognosis appears positive. Since the Emirate and
the GCC region have significant infrastructure needs, infrastructure projects
are a crucial component of the nation's economic growth. As a result, it aims
to create effective transportation and logistics systems as well as steady
sources of renewable energy. A historic agreement to normalize relations
between Israel and the UAE was also achieved, creating new investment
opportunities. The nations decided to create a coordinated plan to increase
collaboration in the energy industry. Abu Dhabi wants to continue its steady
expansion. According to estimates, Abu Dhabi's portion of the pipeline will
increase over the next few years as the administration prioritises initiatives
to diversify the Emirate's economy beyond oil. Under the aegis of its Abu Dhabi
2030 Plan, the Government of Abu Dhabi hopes to bring in 7.9 million tourists
yearly by that time.
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Increase in Tourism Activities will Boost the
Construction Sector
The UAE has made numerous
efforts to entice international investment and residents to aid in the nation's
recovery from the COVID-19 outbreak's impact. The country's economic growth is
expected to increase by 3.1% in 2021, according to the International Monetary
Fund (IMF), which cited the Emirate's response to the COVID-19 pandemic. The UAE
intends to establish 50 new economic projects over the next nine years to
increase its competitiveness and draw in FDI worth USD 150 billion.
The Private Public Partnership
(PPP) model, which enables the provision of effective goods and services at a
lower cost, is also being adopted by the nation. The Abu Dhabi government
proposed an ambitious plan in 2020 to invest over USD 2.72 billion in
infrastructure partnership projects in a number of sectors, including municipal
work, transportation, and education. The PPP initiative was created as a
component of Abu Dhabi's USD 14 billion 'Ghadan 21' accelerator program to
support economic expansion.
Growing Urbanization and Increasing Investments in
Sustainable Infrastructure Development
The United Arab Emirates (UAE)
has witnessed a significant trend of growing urbanization and an increasing
focus on sustainable infrastructure development. As the country rapidly
evolves, its cities are experiencing a surge in population and economic
activity, leading to the need for efficient and modern urban infrastructure. The
non-residential building business has also seen growth over the course of
history, which has helped the global construction market grow even more. The
modernization of transportation infrastructure is assisting market expansion as
well. The circular economy projects are minimizing waste from construction and
demolition and increasing resource efficiency, which lowers costs and has a
positive impact on the environment. Governments are putting emphasis on
creating net-zero structures. For instance, the French government's Climate and
Resilience Law for 2021–2026 aims to hasten the green transition and includes a
reform to the thermal regulation for new structures. Over the forecast period,
the construction market is anticipated to benefit from stakeholders' adoption
of digital technologies such as artificial intelligence (AI), advanced
analytics (AA), and machine learning (ML) for better business outcomes and to
address issues, including labor shortages.
The UAE Gulf ships facilitate
essential travel and trade between the UAE and India. These ships serve as
vital maritime links, connecting the two nations across the Arabian Sea. The
route is crucial for transporting goods, fostering bilateral trade, and
strengthening economic ties. It also enables convenient and efficient travel
for people commuting between the UAE and various Indian ports, facilitating
cultural exchanges and tourism. The maritime route plays a pivotal role in
promoting regional cooperation and enhancing the historical ties between the
UAE and India, contributing to the growth and prosperity of both nations. The
UAE, which has business-friendly free zones and a rapidly expanding economy,
continues to be a strategic center. This is a reflection of the UAE's abundant
natural resources, which account for 10% of the world's oil reserves and the
fifth-largest natural gas reserves.
To lessen its reliance on oil
and change its economy from a traditional, labor-intensive economy to one based
on information, technology, and skilled labor, the UAE initiated an economic
diversification program. The federal government and the governments of several
Emirate countries have made significant investments in industries such as
re-export trade, telecommunications, advanced technologies, tourism, aviation,
renewable energy, and aluminium manufacture. The Fourth Industrial Revolution
(4IR) Strategy was introduced by the UAE in 2017 with the goal of enhancing the
UAE's status as a hub for 4IR technology and innovation on a global scale.
These forward-thinking programs are centered on young people, who are assuming
significant leadership positions in industry, government, research, and other
fields. The UAE's economic diversification has been largely successful due to
the tourism industry. The development of the travel and tourism sector, as well
as the nation's top-tier airlines such as Etihad and Emirates, have been
significant drivers of economic growth in the UAE. The UAE hosted the World
Expo in 2021, drawing visitors and business leaders from all around the world.
Recent Development:
- In January 2022, NMDC was awarded a USD 354 million contract by AD Ports
Group for marine construction for Shamal Development. The scope of work will
involve 16.8 million cubic metres of dredging, a 1.2 km quay wall, and a
roughly 3.8 km long detached breakwater.
- In December
2021, Depa PLC, the top provider of interior solutions worldwide, announced the
award of two projects worth more than AED 150 million. In Jeddah, the Kingdom
of Saudi Arabia, Depa Interiors, Depa's key business unit for the Middle East
that specializes in the provision of interior solutions to the hospitality,
residential, commercial, transport, and civil infrastructure sectors, won a
significant hospitality package worth more than SAR 74 million (AED 73 million)
for a well-known hospitality brand. Depa Interiors also won a fit-out package
worth more than AED 78 million for a prestigious hospitality project housed in
a high-rise mixed-use complex in the heart of Dubai.
- A
historic agreement to normalize relations between Israel and the UAE was also
achieved, creating new investment opportunities. The nations decided to create
a coordinated plan to increase collaboration in the energy industry. Abu Dhabi
wants to continue its steady expansion. According to estimates, Abu Dhabi's
portion of the pipeline will increase over the next few years as the
administration prioritizes initiatives to diversify the Emirate's economy
beyond oil. Under the aegis of its Abu Dhabi 2030 Plan, the Government of Abu
Dhabi hopes to bring in 7.9 million tourists yearly by that time. The Emirate
also plans to increase its office and retail space to 4 million and 7.5 million
square meters, respectively, by 2030.
Market Segmentation
The UAE construction market is divided
into industry type and end user. Based on industry type, the market is divided into
industrial, commercial, infrastructure, and residential. Based on end user, the
market is divided into private and public.
Market Players
Major market players in the UAE construction market are AE Arma-Electropanc,
Consolidated Contractors Group, Bechtel, Fluor Corp, Arabtec Construction LLC,
Al Futtaim Carillion, Arabian Construction Company, Joannou & Paraskevaides
Overseas Limited, and Freyssinet Gulf LLC.
|
Attribute
|
Details
|
|
Base Year
|
2022
|
|
Historic Data
|
2018 –
2022
|
|
Estimated Year
|
2023
|
|
Forecast Period
|
2024
– 2028
|
|
Quantitative Units
|
Value (USD Million) and CAGR for 2018-2022 and 2023-2028
|
|
Report coverage
|
Revenue
forecast, company share, growth factors, and trends
|
|
Segments covered
|
Industry Type
End Use
Region
|
|
Region scope
|
Dubai,
Abu Dhabi, Sharjah, Rest of UAE
|
|
Key companies profiled
|
AE
Arma-Electropanc, Consolidated Contractors Group, Bechtel, Fluor Corp,
Arabtec Construction LLC, Al Futtaim Carillion, Arabian Construction Company,
Joannou & Paraskevaides Overseas Limited, Freyssinet Gulf LLC
|
|
Customization scope
|
10% free
report customization with purchase. Addition or alteration to country, regional
& segment scope.
|
|
Pricing and purchase options
|
Avail customized purchase options to meet your exact research
needs. Explore purchase options
|
|
Delivery Format
|
PDF
and Excel through Email (We can also provide the editable version of the
report in PPT/Word format on special request)
|
Report Scope:
In this report, the UAE
construction market has been
segmented into following categories, in addition to the industry trends which
have also been detailed below:
·
UAE Construction Market, By Industry Type:
o Industrial
o Commercial
o Infrastructure
o Residential
·
UAE Construction Market, By End Use:
o
Private
o
Public
·
UAE Construction Market, By Region:
o
Dubai
o
Abu Dhabi
o
Sharjah
o
Rest of UAE
Competitive Landscape
Company
Profiles: Detailed
analysis of the major companies present in the UAE construction market.
Available Customizations:
UAE construction market report with the given market data, Tech
Sci Research offers customizations according to a company's specific needs. The
following customization options are available for the report:
Company Information
- Detailed analysis and profiling of
additional market players (up to five).
UAE construction market has an upcoming report to be released
soon. If you wish an early delivery of this report or want to confirm the date
of release, please contact us at [email protected]