UAE Construction Market Gains Momentum Across Key Segments

12 Nov 2025 • 3 min read

Anna Fischer

Construction Content Writer

The UAE’s construction sector is showing signs of renewed strength, with seven out of ten industry leaders reporting increased activity across key segments such as real estate, infrastructure, and tourism. These findings are based on a recent survey conducted by Turner & Townsend.

The professional services firm surveyed contractors, consultants, and developers in the United Arab Emirates about activity levels over the past six months.

The results show that residential developments, both in the private sector and social housing, have been the strongest driver of activity. Mixed-use projects and high-specification commercial buildings followed closely behind.

The report states that residential construction is thriving across the region due to urban expansion and population growth. This surge in building activity is accompanied by a growing focus on digital transformation, sustainability, and urban innovation.

Housing Market and Tourism Growth

One respondent commented that the housing market’s performance over the next 12 months will have a major impact on the construction industry. With ongoing net migration of people and capital to the UAE, he expects growth to continue.

Tourism-related projects, such as hotels and hospitality facilities, continue to feature strongly in the pipeline. The UAE Tourism Strategy 2031, which aims to attract 40 million visitors, is supported by investments of AED 100 billion in tourism infrastructure. Meanwhile, demand for data centers is rising, driven by the growing AI sector.

Transport Infrastructure Expansion

Transport infrastructure is another key growth area, with the sector expected to grow at a compound annual growth rate (CAGR) of 5.6% through 2030. Notable flagship projects include the AED 22 billion hyperloop between Abu Dhabi and Dubai, and the AED 20 billion Gold Line metro project.

With these drivers in play, the UAE construction market is expected to grow from its current value of approximately US$43 billion to around US$52 billion by 2033.

Sustainability in Construction

The survey highlights sustainability as an increasing priority. About 46% of respondents reported that current projects have a net-zero commitment, and 56% indicated that sustainability measures have increased across the board.

Adam Ralph, UAE Country Manager at Turner & Townsend, stated that this trend is expected to accelerate due to new government strategies, legislation, and investments. Ralph also noted:

Our survey shows a market that is not only growing but evolving. Clients and contractors are responding to the UAE’s ambitious development agenda with innovation, resilience, and a clear appetite for sustainable progress. With strong activity across residential, infrastructure, and hospitality sectors, and increasing interest in digital and sustainable delivery, the region offers significant opportunities for organizations contributing to its long-term transformation.

Adam Ralph

UAE Country Manager at Turner & Townsend

Anna Fischer

Construction Content Writer

Anna has background in IT companies and has written numerous articles on technology topics.

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