
Author – Tristan Hawkey
The UAE construction sector, valued at $94 billion, presents numerous opportunities for companies, particularly in residential, transport, and renewable energy projects. According to a report by GlobalData, the residential segment remains the largest contributor, driven by record-breaking real estate growth in Dubai and Abu Dhabi. In 2023, the Dubai Land Department recorded 166,400 real estate transactions worth AED634 billion ($172.61 billion), highlighting a robust market for residential construction.
Government investments in transport infrastructure are set to propel future growth. Dubai’s AED18 billion ($4.9 billion) “blue line” Metro project, adding 30 km of rapid transit rail lines by 2029, aims to enhance connectivity and create profitable opportunities for real estate developers. Additionally, the introduction of the Etihad Rail passenger train will further ease movement across the city, benefiting residents and investors alike.
The completion of a inter-city Rail line may result in more expatriates moving to Emirates further away from Dubai and Abu-Dhabi for a lifestyle, more suited to that of living in the ‘countryside’. Real estate (both commercial and residential) on average gain margins of up to 50%, when compared to the UK’s typical 10-30%. Real estate also has fewer regulation resulting in capital not being tied up projects for 5-8 years. Average real estate developments can turn in 3-5 years in the UAE (often even quicker).
Renewable energy infrastructure also presents significant opportunities. The UAE has seen considerable capital expenditure in this sector, aligning with global sustainability trends and the nation’s commitment to diversifying its energy sources. Companies specializing in renewable energy projects can tap into this growing market.
The GlobalData report forecasts a 3 percent annual growth in the UAE construction market between 2025 and 2028, driven by increased investments in tourism, retail, and industrial sectors. The development of leisure and hospitality buildings, office spaces, and recreational facilities is expected to boost the commercial construction sector. Simultaneously, industrial projects, including manufacturing and processing plants, are likely to rise, funded by both public and private sectors. These diverse opportunities make the UAE a promising market for construction companies.