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Our latest UAE Construction Industry Report 2024 provides the most recent economic and market data and predicts the short- and long-term effects of trends on the construction sector.
The UAE's continued commitment to infrastructure development and the strategic government initiatives ensures a robust pipeline of construction projects for the foreseeable future.
Overall, this report will serve as a valuable resource for construction companies in the UAE and investors who are looking to capitalize on the expanding opportunities within the UAE's construction sector.
In Q1 of 2023, the UAE experienced a 3.8% year-on-year growth rate, slightly lower than Q4 of 2022's 5.5% year-on-year growth. However, the growth rate is expected to increase to 4% in 2024 due to significant performance in the non-oil sector. Factors contributing to the UAE's economic growth include a strong business environment, growing foreign investments, and effective strategies for growth and innovation.
The UAE's overall GDP is expected to increase in 2024, with a notable year-on-year growth in the construction sector. The government is committed to environmental sustainability, with several projects announced that will offer promising investment opportunities, adding to the country's overall economic value.
The UAE federal general budget for 2024 is set at USD 17.44 billion, marking a 1.6% increase from the 2023 budget of USD 17.17 billion. This increase is indicative of the country's commitment to sustained economic growth and development across various sectors. The budget allocation reflects the government's strategic priorities, focusing on infrastructure, healthcare, and environmental sustainability initiatives. The chart below shows its allocation for various sectors.
The UAE continues to attract significant international investments through its ambitious mega projects. Noteworthy projects include Etihad Rail, Guggenheim Abu Dhabi, and the Natural History Museum, among others. These projects not only boost the tourism and business landscape but also enhance the country's infrastructure, making it a hub for global business and leisure activities.
The UAE construction industry is experiencing a significant shift towards digitalization and the use of advanced technologies. This trend is expected to further boost the country's economy. One of the critical trends is the adoption of green construction practices, aligned with the UAE Clean Energy Strategy 2050, which aims to achieve zero percent emissions by 2050 using a combination of clean, renewable, and nuclear energy sources. You can view some of the upcoming sustainable projects in Dubai here.
