According to ConsTrack360’s, prefabricated construction industry in United Arab Emirates is expected to grow by 8.9% to reach AED 26,444 million in 2024.

The medium to long-term growth story in United Arab Emirates remains intact. The prefabricated construction industry in United Arab Emirates is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 8.6% during 2024-2028. The prefabricated construction output in the country is expected to reach AED 36,762.5 million by 2028.

The prefabricated construction market is expected to record steady growth over the medium term in the United Arab Emirates. Several projects have been announced in the residential and commercial sector, indicating towards the higher adoption of construction method in the Middle Eastern market. H World International (HWI), in May 2024, announced that the firm aims to open up to 10 Ji Hotel using prefabricated construction technology in Dubai.

Alongside the private sector investment, public sector investment in the prefabricated construction market is also expected to increase over the medium term in the Emirati nation. Dubai Municipality, in 2023, signed a massive construction deal with modular construction firm LINQ. Overall, ConsTrack360 maintains a positive growth outlook for the prefabricated construction market in the Emirates over the next three to four years.

Chinese firm plans to launch 10 prefabricated hotel properties in Dubai over the next decade

H World International (HWI), a part of China’s major hotel chain group H World Group, is planning to launch its Ji Hotel brand to Dubai. The firm, in May 2024, announced that while there are no agreements yet, it aims to open up to 10 Ji Hotel locations in Dubai over the next decade.

  • Ji Hotel uses a modular, plug-and-play approach, where room interiors are partially assembled in China and then installed at the hotel in just an hour. Each room has five modules: bedside and headboard, toilet and shower, sink and mirror, TV and entertainment, and desk area. This method lets HWI update and upgrade the interiors every few years, using eco-friendly materials that can be upcycled or recycled.

    The expansion in the Middle East is part of the firm’s strategy to tap into the growing tourism industry. Dubai, in 2023, achieved its best tourism performance ever, with international arrivals growing by 19.4% to reach 17.15 million, according to data released by Dubai’s Department of Economy and Tourism in February 2024. With occupancy levels reaching an all-time high, the Chinese firm plans to benefit from the growing tourism market in the Middle East. Alongside Dubai, the firm also plans to launch similar number of properties in the Kingdom of Saudi Arabia over the next decade.

    The shift towards sustainable construction practices is expected to aid investment in the prefabricated construction market

    The shift towards sustainability and green building practices is reshaping the construction sector in the United Arab Emirates. Prefabrication construction technology is expected to emerge as a significant force driving innovation in the construction market over the medium term.
  • Dubai Municipality, in 2023, signed a massive construction deal with modular construction firm LINQ. The firm received the license enabling LINQ to initiate a pilot project for a G+6 building. The approval includes the use of advanced technology, innovative systems, and materials to design and construct highly sustainable modular units for both commercial and residential developments.

    This step aligns with Dubai Municipality’s commitment to advancing and promoting sustainability, contributing to Dubai’s position as one of the most advanced and sustainable cities globally. The approval to test the construction of a six-story modular unit is another example of Dubai’s government vision and enthusiasm to lead globally in innovative construction. The modular units, for the test project, will be constructed at LINQ’s manufacturing facility, which spans 300,000 square feet. Notably, the facility can produce up to 1,900 units annually.

    This market intelligence report from ConsTrack360 provides a detailed view of market opportunities in the prefabricated building construction industry with over 100+ KPIs, covering end markets, prefabricated/precast materials, and products in United Arab Emirates. This is a databook offering, which primarily provides data-centric analysis with charts and tables.
  • End Market Dynamics: Provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in the prefabricated industry in United Arab Emirates.
  • Prefabricated Methods: Provides an in-depth analysis of industry across 3 methods- panelised construction, modular (Volumetric) construction, and hybrid (Semi-volumetric) construction in United Arab Emirates.
  • Prefabricated Materials: Provides demand analysis across 7 key materials such as aluminum, wood, iron & steel, concrete, glass, and other.
  • Prefabricated Products: Provides demand analysis of market by 7 key products such as building superstructure, roof construction, floor construction, interior room modules, exterior walls, columns & beams, and other.

    ConsTrack360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.