UAE market intelligence: Upward trajectory for construction
Despite the impacts of global inflation, rising costs of construction, supply chain disruption, and contractual and legal constraints, the UAE and some areas of the Middle East are now experiencing significant market activity with a new wave of landmark projects announced.
In our first market intelligence report for the UAE, we provide an economic outlook on the market, incorporating the views and experiences of industry professionals, as well as exploring the opportunities and challenges for the construction industry.
The construction sector plays a significant role in the country’s economy, making an important contribution to the UAE’s economic uplift and development.
Over the coming years we expect to see rapid growth in the industry with the overall economy expected to have grown by 5.1 percent.
Current market sentiment in the UAE remains positive and the country was among a few worldwide to report a rise in workload, and an increase in profit margin expectations over the last year.
Whilst travel and tourism remain key pillars of the economy, the UAE’s residential market is set to rise to meet growing demands, this is caused by geopolitical tensions, an influx of foreign investment, and general population growth, as a result of the country’s pandemic resilience.
For the most part, real estate sectors continue to dominate the construction landscape, though transportation and road infrastructure development are key to meeting the needs of the UAE’s expanding population.
Digitalisation and sustainability
As we look ahead, the digitisation of ways of working in construction will become more pervasive, and more sustainable construction is now firmly on the agenda.
We see a clear need for the industry’s key players to invest in exploring approaches towards decarbonisation, and with COP28 on the horizon, an increase in environmental legislation would help drive a green and more sustainable agenda for the UAE’s future development aspirations.
Read the full report to access data and sentiment insight from across the full supply chain.