UAE EPC Power Market By Technology (Thermal, Oil & Gas, Renewable, Nuclear, Others), By End-User (Residential, Commercial, Industrial), By Application (Grid-Connected Power System, Off-Grid Power System), By Service (Engineering, Procurement, Construction, Operations & Maintenance Services), By Region, Forecast and Opportunities, 2028 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 34.18 Billion
CAGR (2026-2031)	6.24%
Fastest Growing Segment	Procurement
Largest Market	Abu Dhabi
Market Size (2031)	USD 49.15 Billion

Market Overview

The UAE EPC Power Market will grow from USD 34.18 Billion in 2025 to USD 49.15 Billion by 2031 at a 6.24% CAGR. The UAE EPC Power Market involves the comprehensive provision of design, procurement, and construction services for energy infrastructure, ranging from renewable solar parks to traditional thermal power stations. The primary drivers supporting market growth include the government's rigorous industrialization agenda and the strategic shift toward low-carbon energy sources under the Net Zero 2050 strategy. According to the International Energy Agency, in 2024, total power generation in the UAE rose to 164 terawatt-hours, driven by these escalating economic requirements.

Despite this positive trajectory, the sector encounters a substantial impediment regarding the grid integration of variable renewable energy. Adapting the existing transmission infrastructure to handle the intermittency of large-scale solar projects requires complex technical upgrades and significant capital investment. This challenge creates potential delays in project handover and increases financial risks for EPC contractors, thereby acting as a constraint on rapid market expansion.

Key Market Drivers

Robust Government Targets for Renewable Energy Integration stand as the primary catalyst propelling the UAE EPC Power Market. The federal administration is aggressively pursuing the Net Zero 2050 strategy, necessitating a massive overhaul of energy infrastructure to incorporate low-carbon sources. This regulatory mandate translates directly into capital expenditure opportunities for EPC contractors, particularly in the development of utility-scale solar parks and nuclear facilities. According to the Ministry of Energy and Infrastructure, November 2024, the UAE government plans to invest up to AED 200 billion (USD 54.5 billion) by 2030 to meet its targets for significantly increasing clean energy capacity. Such substantial financial commitment ensures a steady pipeline of high-value contracts for engineering firms capable of delivering complex renewable energy systems. Illustrating the scale of this capacity expansion, according to Masdar, October 2024, the company's total clean energy portfolio capacity grew to 31.5 gigawatts in the preceding year, highlighting the rapid project execution driven by these state-led initiatives.

Surging Electricity Demand from Rapid Urbanization and Population Growth further amplifies the need for immediate power capacity expansion and grid enhancements. As the UAE expands its residential developments and industrial zones, the load on existing generation and transmission assets has intensified, compelling utilities to fast-track upgrade projects and new plant construction. According to the Dubai Electricity and Water Authority (DEWA), November 2024, in its 'Third Quarter 2024 Financial Results', power generation in the emirate soared to 19.6 terawatt-hours for the quarter, marking a 3.98% increase compared to the same period in the previous year. This escalating consumption trajectory forces utilities to continuously award contracts for transmission network modernization and peak-load generation facilities to mitigate the risk of outages and ensure system reliability across the growing urban landscape.

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Key Market Challenges

The integration of variable renewable energy into the existing transmission infrastructure stands as a primary bottleneck limiting the expansion of the UAE EPC Power Market. As the nation aggressively commissions utility-scale solar projects, the electrical grid faces stability issues due to the high intermittency of photovoltaic generation. This technical mismatch forces Engineering, Procurement, and Construction contractors to implement complex grid reinforcement measures, such as advanced stabilization systems, which were often not accounted for in initial scopes. These requirements significantly inflate project budgets and extend delivery timelines, increasing the financial risk profile for contractors and discouraging rapid project turnover essential for market growth.

The magnitude of this operational constraint is underscored by the rapid accumulation of variable capacity that places immense pressure on networks originally designed for steady thermal baseloads. According to Dii Desert Energy, in 2025, the UAE achieved a total installed renewable energy capacity of 6.3 gigawatts. This substantial concentration of variable power requires intricate grid impact studies and modernization efforts before projects can be successfully energized. These procedural and technical hurdles directly impede the ability of EPC firms to finalize project handovers, thereby acting as a tangible brake on the sector's overall momentum.

Key Market Trends

The deployment of utility-scale battery energy storage systems is rapidly emerging as a critical trend to stabilize the integration of intermittent renewable sources. As solar penetration deepens, Engineering, Procurement, and Construction contractors are prioritizing the installation of massive storage architectures that enable consistent power delivery. This shift is highlighted by the commencement of record-breaking projects designed to provide dispatchable clean energy. According to Power Technology, October 2025, the UAE initiated the construction of a strategic renewable project integrating a 5.2 gigawatt solar plant with a 19 gigawatt-hour (GWh) battery energy storage system, positioning the nation at the forefront of grid-stabilizing technologies.

Concurrently, there is a rising development of waste-to-energy facilities, driven by the national focus on circular economy power solutions. This trend diversifies the EPC landscape as utilities commission complex plants capable of processing high volumes of municipal solid waste into electricity, thereby reducing landfill dependency. The scale of these infrastructure investments is evident in the operational success of flagship projects in Dubai. According to Utilities Middle East, May 2025, the Dubai Waste Management Centre now processes up to two million tonnes of waste annually, generating renewable energy for thousands of homes and establishing a robust model for future waste-to-energy expansions across the emirates.

Segmental Insights

Sector analysis highlights Procurement as the fastest-growing segment within the UAE EPC Power Market. This accelerated expansion is driven by the nation’s pivot toward renewable energy, which demands the acquisition of high-value imported technologies such as solar photovoltaic modules and turbines. Large-scale initiatives overseen by the Dubai Electricity and Water Authority (DEWA) and Emirates Water and Electricity Company (EWEC) necessitate substantial capital allocation for these specialized materials. Consequently, expenditure on equipment sourcing is rising more rapidly than investments in engineering consultation or physical construction services.

Regional Insights

Abu Dhabi maintains a leading position in the UAE EPC power market due to extensive investments in low-carbon energy infrastructure. The Emirates Water and Electricity Company drives this sector by tendering large-scale utility projects, particularly in solar photovoltaic and nuclear energy. These developments generate substantial contract opportunities for engineering and construction firms. Additionally, the regulatory framework established by the Abu Dhabi Department of Energy ensures consistent project execution aligned with national diversification strategies. Consequently, the high volume of infrastructure development establishes Abu Dhabi as the primary hub for power sector activities within the country.

Recent Developments

• In April 2025, a joint venture comprising Samsung C&T Corporation and Trojan General Contracting was awarded the Engineering, Procurement, and Construction (EPC) contract for the Al Dhafra Open-Cycle Gas Turbine power project. The contract, requiring an investment of about $1.35 billion, was issued by the Abu Dhabi National Energy Company (Taqa). The 1,000-megawatt facility in the Al Dhafra region was planned to operate as a standby power plant to ensure grid stability and support the integration of renewable energy. This award followed the execution of a long-term power purchase agreement between Taqa and the Emirates Water and Electricity Company.
• In January 2025, Abu Dhabi Future Energy Company (Masdar) signed Letters of Award with Larsen & Toubro and PowerChina, selecting them as the Engineering, Procurement, and Construction (EPC) contractors for a gigascale renewable energy project. The development, valued at approximately $6 billion, featured a 5.2-gigawatt solar photovoltaic plant paired with a 19-gigawatt-hour battery energy storage system. This infrastructure was established to provide a continuous supply of clean power to the Emirates Water and Electricity Company. The project represented a significant collaboration to address the intermittency of renewable energy, utilizing battery technology from suppliers such as CATL.
• In July 2024, PowerChina Huadong Engineering Corporation Limited was awarded the Engineering, Procurement, and Construction (EPC) contract for the Al Ajban Solar Photovoltaic Independent Power Project in Abu Dhabi. This 1.5-gigawatt facility, developed by a consortium including EDF Renewables and Korea Western Power Company, was designed to generate electricity for approximately 160,000 homes. The project served as a critical component of the Emirates Water and Electricity Company’s strategy to enhance solar capacity. The Chinese contractor was tasked with the technical execution of the plant, located 70 kilometers northeast of the capital, to support the region's decarbonization goals.
• In January 2024, the Power Transmission & Distribution business of Larsen & Toubro secured a major Engineering, Procurement, and Construction (EPC) order to establish a 1,800 MWac solar photovoltaic plant in Dubai. The project, valued between $1.2 billion and $1.8 billion, was awarded by Masdar in partnership with the Dubai Electricity and Water Authority (DEWA) for the sixth phase of the Mohammed bin Rashid Al Maktoum Solar Park. The scope of work involved constructing the photovoltaic plant, two gas-insulated substations, and high-voltage underground cabling. This infrastructure was designed to reduce carbon emissions by approximately 2.4 million tonnes annually.

Key Market Players

• Abu Dhabi National Energy Company PJSC
• Abu Dhabi Transmission & Despatch Company
• Dubai Electricity and Water Authority
• Petrofac Limited
• GE Power and Water Middle East and Africa
• Abu Dhabi Future Energy Company
• Siemens LLC UAE
• Hitachi ABB Power Grids UAE
• Jinko Solar Trading (Dubai) Co., Ltd
• Sumitomo Corporation Middle East FZE
• L&T Electrical and Automation

By Technology	By End-User	By Application	By Service	By Region
Thermal Oil & Gas Renewable Nuclear Others	Residential Commercial Industrial	Grid-Connected Power System Off-Grid Power System	Engineering Procurement Construction Operations & Maintenance Services	Dubai Abu Dhabi Sharjah Rest of UAE

Report Scope:

In this report, the UAE EPC Power Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• UAE EPC Power Market, By Technology:

• Thermal
• Oil & Gas
• Renewable
• Nuclear
• Others

• UAE EPC Power Market, By End-User:

• Residential
• Commercial
• Industrial

• UAE EPC Power Market, By Application:

• Grid-Connected Power System
• Off-Grid Power System

• UAE EPC Power Market, By Service:

• Engineering
• Procurement
• Construction
• Operations & Maintenance Services

• UAE EPC Power Market, By Region:

• Dubai
• Abu Dhabi
• Sharjah
• Rest of UAE