Summary

Following two years of contraction, the UAE construction industry rebounded in 2018, and registered a growth of 4.2% in real terms. Consequently, the industry’s output value, measured at constant 2017 US dollar exchange rates, increased from US$77.4 billion in 2017 to US$80.7 billion in 2018; this growth can be attributed to recovery in crude oil prices, a rise in non-oil product exports and a decrease in the fiscal deficit.

Recovery in the country’s construction industry is expected to continue over the forecast period (2019-2023), driven by a declining budget deficit and improving investor confidence, which will support new investments in residential, energy and utilities, infrastructure and commercial construction projects. Furthermore, an increase in crude oil production and government efforts to diversify the economy are expected to drive investment in the UAE construction industry over the forecast period.

The industry’s output value in real terms is expected to rise at a compounded annual growth rate (CAGR) of 4.64% over the forecast period - up from 1.08% during the review period (2014-2018). Investments in transport, energy and social infrastructure development projects under various programs will support the industry’s expansion over the forecast period. Notable some of these being the Ministry of Education Strategic Plan 2017-2021, National Strategy for Higher Education 2030 and Education 2020 Strategy, the Energy Strategy 2050, the Sheikh Zayed Housing Program and the Dubai Tourism Strategy. The industry is consequently expected to rise from a value of US$80.7 billion in 2018 to US$101.2 billion in 2023, measured at constant 2017 US dollar exchange rates.

Residential construction was the largest market in the UAE construction industry during the review period, accounting for 33.1% of the industry’s total value in 2018. The market is expected to retain its position over the forecast period, with residential construction accounting for 33.1% of the industry’s total value in 2023. More so, this market output is expected to be supported by government efforts to balance housing demand and supply through the construction of housing units

The energy and utilities construction was the second-largest market in the UAE construction industry during the review period, accounting for 26.7% of the industry’s total value in 2018. This market is expected to follow a similar trend over the forecast period, with energy and utilities construction accounting for 26.3% of the industry’s total value in 2023. This sector would also be supported by the government’s plan to invest AED600.0 billion (US$163.0 billion) to develop renewable energy projects in the country by 2050.

The report "Construction in the UAE - Key Trends and Opportunities to 2023", provides detailed market analysis, information and insights into the UAE construction industry, including -

  • The UAE construction industry’s growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the UAE construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.




Scope

  • This report provides a comprehensive analysis of the construction industry in the UAE.
  • Historical (2014-2018) and forecast (2019-2023) valuations of the construction industry in the UAE, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants.




Reasons To Buy

  • Identify and evaluate market opportunities using GlobalData’s standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using GlobalData’s critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.