Dublin, Oct. 04, 2024 (GLOBE NEWSWIRE) -- The "United Arab Emirates Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2024 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in the United Arab Emirates is expected to grow by 6.2% to reach AED 189.59 billion in 2024.
Despite near-term challenges in certain construction sectors, the United Arab Emirates's construction industry is poised for significant growth. The industry is expected to grow steadily over the next four quarters, with the growth momentum continuing over the forecast period. A CAGR of 5.4% is projected during 2024-2028, with the country's construction output expected to reach AED 234.37 billion by 2028, indicating substantial growth potential.
The UAE construction industry is on a robust growth trajectory, driven by strategic investments, innovative practices, and a strong commitment to sustainability. As the sector adapts to new challenges and opportunities, stakeholders must remain proactive in leveraging emerging trends and aligning with government initiatives. Executives can position their organizations for success in this dynamic market by focusing on collaboration and technological integration.
The construction industry in the United Arab Emirates (UAE) is experiencing significant growth and transformation, driven by strategic government initiatives, technological advancements, and a robust investment climate.
- Government Investment and Budget Allocation: The UAE federal budget for 2024 is set at AED64.1 billion ($17.5 billion), with significant allocations for infrastructure, housing, and public services. This budget underscores the government's commitment to long-term economic development and infrastructure enhancement.
- Public-Private Partnerships (PPPs): The rise of PPPs is reshaping the construction landscape. Dubai's Roads and Transport Authority approved ten projects worth AED2.5 billion under this model for 2024-2026. This collaborative approach is expected to accelerate project delivery and innovation.
- Digitalization and Sustainability: The construction industry increasingly adopts digital technologies and sustainable practices, aligning with the UAE Clean Energy Strategy 2050. This includes integrating smart technologies into building designs and focusing on reducing carbon emissions across projects.
Residential Construction: Leading the Growth
- Strong Demand for Housing: The residential sector is anticipated to lead construction growth, driven by luxury and affordable housing projects. The Crown Prince of Abu Dhabi has approved initiatives to develop over 13,000 homes, reflecting a commitment to addressing housing shortages.
- Innovative Housing Policies: The introduction of an affordable housing policy aims to facilitate over 100 initiatives, enhancing access to housing for various income groups. This policy is crucial for supporting the UAE's growing population and urbanization trends.
Commercial Construction: Adapting to Market Needs
- Expansion of Retail and Office Spaces: The commercial construction segment is witnessing a surge in new retail and office developments, driven by a recovering economy and changing consumer behaviours. Emaar Properties plans to launch 27 projects by mid-2024, investing approximately AED30 billion ($8.2 billion) in residential and retail spaces.
- Focus on Mixed-Use Developments: There is a growing trend towards mixed-use developments that combine residential, commercial, and leisure spaces, catering to the evolving lifestyle preferences of residents and visitors alike.
Institutional Construction: Building for the Future
- Investment in Education and Healthcare: The institutional sector prioritizes investments in educational and healthcare facilities, with over AED4 billion allocated for education projects 2024. This includes renovations and expansions of existing institutions to enhance service delivery.
- Sustainable Institutional Projects: New institutional projects increasingly incorporate sustainable design principles, aligning with national environmental responsibility and energy efficiency goals.
Industrial Construction: Strengthening Economic Foundations
- Growth in Manufacturing Facilities: The industrial construction sector is expanding, with significant investments in manufacturing and logistics facilities. Emirates Global Aluminum (EGA) has begun construction on the largest aluminum recycling facility in the UAE, highlighting the focus on sustainable industrial practices.
- Infrastructure for Industry: Ongoing infrastructure projects are essential for supporting industrial growth, including logistics hubs that enhance regional supply chain efficiencies and connectivity.
Infrastructure Construction: The Backbone of Development
- Major Infrastructure Investments: Abu Dhabi has approved infrastructure projects worth US$18 billion in Q1 2024, focusing on housing, education, and tourism. This investment is crucial for supporting the UAE's long-term economic strategy and enhancing public services.
- Key Projects Driving Growth: Notable projects include the Dubai Creek Tower and the Mohammed bin Rashid Al Maktoum Solar Park, which are set to redefine the UAE's skyline and energy landscape. These projects will boost infrastructure and enhance the UAE's global business and tourism hub position.
This market intelligence report offers a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the United Arab Emirates, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.
Highlights
- Market Dynamics by Value, Volume, and Number of Units: This report provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in the United Arab Emirates's building and infrastructure construction industry.
- The report provides a detailed analysis of the residential construction market, covering various types of construction, development stages, price points, and key cities. KPIs include value, volume, and number of units, offering a comprehensive view of this sector.
- Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
- Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, and chemical & pharmaceutical buildings.
- Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants and educational buildings.
- Infrastructure Construction Outlook: This report provides growth dynamics and market analysis for three key sections: marine and inland, utility system and transport infrastructure construction.
- City Level Analysis: Provides outlook of the top 10 cities in the United Arab Emirates by construction value.
- The Construction Cost Structure Analysis module in this report provides a detailed outlook on construction costs by construction value, such as material, labor, equipment, and others. At a granular level, it offers a comprehensive material cost analysis by type of materials and labor cost by type of work, ensuring stakeholders deeply understand the cost structure.
For more information about this report visit https://www.researchandmarkets.com/r/s6h5y1
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