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Our latest UAE Construction Industry Report 2025 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.
The UAE’s economy is set for continued growth, reflecting the country’s strong economic fundamentals, driven by diversified growth across key sectors. Growth was supported by rising non-hydrocarbon activity, increased public spending, and ongoing economic reforms. Looking ahead, the UAE’s OPEC+ quota increase from 2025 is expected to further bolster non-hydrocarbon sector expansion, reinforcing the country's diversified economic growth strategy.
The real GDP growth was forecasted at 4% for 2024, with an expected increase to 5.1% in 2025, with a notable year-on-year growth in the construction sector.
The UAE Cabinet approved the federal general budget for fiscal year 2025, balancing revenues and expenditures at US$19.3 billion (AED 71.5 billion). It is the country’s largest budget in history, representing UAE’s economic resilience. The budget is allocated across several key sectors, including Social Development & Pensions, Government Affairs, Infrastructure & Economic Sector, Financial Investments and other federal expenses.
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.
