United Arab Emirates Construction Industry Report 2025: Market to Grow by 4.2% to Reach AED189.59 Billion this Year - Size & Forecast by Value, Volume, Cost Structure 40+ Market Segments 2020-2029 - ResearchAndMarkets.com

The "United Arab Emirates Construction Industry Databook Series - Market Size & Forecast by Value & Volume, 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure, City-Level Construction by Value and Cost Structure, Q4 2025 Update" report has been added to ResearchAndMarkets.com's offering.

Construction market in the United Arab Emirates is expected to grow by 6.2% on annual basis to reach AED 189.59 billion in 2025.

The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 7.3%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 4.8% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of AED 178.49 billion to approximately AED 242.33 billion.

This report provides a detailed data-centric analysis of the construction sector in United Arab Emirates, offering 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 country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors. The analyst's research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Key Insights

United Arab Emirates Residential Construction Industry

The residential construction sector in the UAE offers strong growth opportunities due to robust population and economic growth demand, supported by significant government initiatives and private investments. Both luxury and affordable housing segments are seeing increased activity, ensuring a balanced market that caters to a diverse population.

However, challenges such as rising construction costs, potential oversupply risks, and high financing costs require careful planning and risk management. To ensure long-term success, stakeholders must prioritize innovation, sustainability, and coordinated urban planning.

United Arab Emirates Commercial Construction

The commercial construction sector in the UAE is poised for robust growth, driven by a booming tourism industry, a surge in business activity, and government initiatives aimed at positioning the country as a global business and travel hub. High-profile mixed-use developments and new office towers underscore a strong market recovery, while innovative hospitality projects continue to attract domestic and international investment.

Several high-profile developments across the UAE highlight the UAE's commercial project pipeline. For instance, in Ras Al Khaimah, construction is underway on the Wynn Resort Al Marjan Island, featuring a 1,000-foot tall hotel tower with over 1,500 rooms and a full array of gaming, retail, and MICE facilities. The project is targeted for a 2027 opening and is expected to position RAK as a new upscale tourism destination.

United Arab Emirates Institutional Construction

Institutional construction in the UAE offers stable, high-impact opportunities that directly support social development and quality of life. With strong government backing, robust fiscal allocations, and a clear focus on education and healthcare expansion, the sector is set to grow even amid global economic uncertainties. Key projects in schools, hospitals, and cultural centers underscore the UAE's commitment to delivering world-class public infrastructure.

Challenges remain around ensuring timely project delivery and optimal utilization of new facilities. Complex stakeholder coordination, rising construction costs, and potential workforce shortages pose risks that must be carefully managed through innovative project delivery and effective cost-control measures. Furthermore, as institutional projects often require sustained public funding, balancing budgets while meeting diverse community needs is essential.

United Arab Emirates Industrial Construction

The UAE's industrial construction sector offers significant opportunities driven by ambitious government strategies and robust economic diversification. With strong backing from initiatives like Operation 300bn and the "Make it in the Emirates" campaign, large-scale oil, petrochemicals, and advanced manufacturing projects are expected to continue growing. These developments support local production capacity and position the UAE as a competitive manufacturing and logistics hub in the region.

However, the sector faces considerable challenges, including rising material and energy costs, global supply chain disruptions, and risks associated with long-term megaprojects. Additionally, intense regional competition and evolving environmental regulations require firms to adopt innovative and sustainable construction practices. Addressing these challenges will necessitate focusing on efficient project management, strategic partnerships, and continuous investment in workforce development and technological innovation.

United Arab Emirates Infrastructure Construction

The UAE's infrastructure construction sector is set to remain a major engine of economic growth, underpinned by robust public investment and long-term strategic planning. As demonstrated by recent budget increases and mega projects like Etihad Rail, continued funding ensures that the country's infrastructure will support urban expansion, global connectivity, and sustainable development for decades. These investments are critical for maintaining the UAE's competitive edge as a global commerce, tourism, and innovation hub.

However, the sector must navigate significant challenges, including rising costs, supply chain uncertainties, and the need for resilient, future-proof designs. Coordination among federal and emirate-level agencies, alongside the effective management of large-scale PPPs, will be essential to avoid cost overruns and ensure project success. Furthermore, as regional competition intensifies and climate change adds new pressures, continuous innovation in construction technology and sustainable practices is imperative.

Report Scope: This report provides market size and forecast across 40+ construction segments for ten years from 2020-2029

KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

United Arab Emirates Economic Indicators

United Arab Emirates Top Cities Construction Data

United Arab Emirates Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

United Arab Emirates Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

United Arab Emirates Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

United Arab Emirates Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

United Arab Emirates Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

United Arab Emirates Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

United Arab Emirates Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Healthcare green building construction
• Educational green building construction

United Arab Emirates Infrastructure Construction Sectors: 10-year market size & forecast in value terms by:

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

United Arab Emirates Green Infrastructure Construction: 10-year market size & forecast in value terms

United Arab Emirates Construction Cost Structure Analysis: 10-year market size & forecast in value terms:

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled vs. unskilled)

For more information about this report visit https://www.researchandmarkets.com/r/gfca3i

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