2 min read
Investments in Transportation to Drive 3% Annual Growth in the UAE Construction Market
by
Anna Fischer
Published 15 Mar 2024
The construction market in the UAE is anticipated to expand at an average annual rate of 3 percent until 2028, largely driven by investments in transport and renewable energy, as per GlobalData.[?]
Source: Freepik
Valued at $94 billion in 2023, the market's growth is attributed to increased investments in transport and renewable energy infrastructure, including advancements in the electric vehicle market.
Residential developments dominated the UAE's construction sector in the previous year, with the real estate sector expected to maintain momentum throughout 2024, driven by significant infrastructure projects and investments from both government and private sectors.
JLL's construction market intelligence report highlighted the UAE's prominent role in the MENA construction market in the first half of 2023, with USD 23 billion worth of awarded projects.[?] Despite this, Saudi Arabia led the MENA building sector in the same period, accounting for 67 percent of the total value, according to JLL's report.
The MENA region awarded projects worth $101 billion in the first six months of the year, with Egypt, KSA, and the UAE contributing over 60 percent of this value.[?] The report also forecasts a 3 percent annual increase in tender price inflation in the UAE, stabilizing at around 2 percent in 2024, driven by market factors such as fluctuations in commodity and construction material costs.
Residential developments dominated the UAE's construction sector in the previous year, with the real estate sector expected to maintain momentum throughout 2024, driven by significant infrastructure projects and investments from both government and private sectors.
JLL's construction market intelligence report highlighted the UAE's prominent role in the MENA construction market in the first half of 2023, with USD 23 billion worth of awarded projects.[?] Despite this, Saudi Arabia led the MENA building sector in the same period, accounting for 67 percent of the total value, according to JLL's report.
The MENA region awarded projects worth $101 billion in the first six months of the year, with Egypt, KSA, and the UAE contributing over 60 percent of this value.[?] The report also forecasts a 3 percent annual increase in tender price inflation in the UAE, stabilizing at around 2 percent in 2024, driven by market factors such as fluctuations in commodity and construction material costs.
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