RIYADH: The UAE’s construction market is projected to grow by an average of 3 percent a year until 2028, driven by transport and renewable energy investments, according to GlobalData.
The Emirates News Agency cited a recent report from the London-based data analytics firm, which forecasts a steady development trajectory for the market — valued at $94 billion in 2023.
“The growth is attributed to the increase in investments in transport and renewable energy infrastructure, with improvements in the electric vehicle market, according to the report,” WAM added.
The report highlighted the building of residential developments as the dominant segment in the UAE’s construction market for the previous year.
It also underscored the continued momentum in the real estate sector, with expectations of sustained progress throughout 2024.
This growth is anticipated to be fueled by initiating high-quality infrastructure projects and substantial investments from governmental and private entities.
The UAE played a significant role in the Middle East and North Africa construction market in the first half of 2023, with $23 billion in awarded projects, according to global property consultant JLL.
Saudi Arabia then took the lead in the MENA building sector, accounting for 67 percent of the total value in the first half of 2023, as revealed in JLL’s construction market intelligence report.
In the study, the firm noted that the region awarded undertakings worth $101 billion in the first six months of the year, with Saudi Arabia contributing around $44 billion.
The analysis highlighted that “the combined estimated value of the project pipeline in the MENA region exceeded $3 trillion, with Egypt, KSA, and the UAE accounting for over 60 percent of this value.”
The Kingdom held the largest share, approximately 35 percent, with an estimated value of $1.3 trillion, while Egypt and the UAE each have an estimated value of $500 billion.
Regarding tender price inflation, the UAE is forecasted to experience a 3 percent annual increase due to market factors linked to commodity and construction material cost fluctuations.
The report noted that the UAE’s tender price inflation is anticipated to stabilize at approximately 2 percent in 2024.
