The UAE Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2030 (Q3 2026)
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Growth in the UAE’s construction industry is expected to slow from 11.1% in real terms in 2025 to 4.8% in 2026, owing to regional geopolitical tensions, which temporarily weakened the oil and non-oil economies. In June 2026, the Central Bank of the UAE (CBUAE) lowered its 2026 GDP growth forecast from 5.6% (as estimated in April 2026) to 1.6% in June 2026, owing to a decline in oil production. According to CBUAE, average oil production dropped to 2.68 million barrels per day over the first four months of 2026, representing an 8% year-on-year (YoY) decrease.
The industry’s output in 2026 is, however, expected to be supported by public investment in infrastructure projects and the ongoing investments in economic diversification projects. According to the CBUAE, the total bank credit to construction and real estate grew by 7.9% YoY in Q1 2026, preceded by YoY growth of 6% in Q4 and 1.5% in Q3 2025. Growth in 2026 will also be supported by investments announced in the 2026 Budget. The 2026 Budget set out a total expenditure of AED92.4 billion ($25.2 billion), representing a 29.2% increase from the AED71.5 billion ($19.5 billion) expenditure earmarked in the 2025 Budget. Within the 2026 spending plan, 48% has been assigned to infrastructure and construction projects, alongside 28% directed to the social development sector. The industry is expected to register an average annual growth of 4% from 2027 to 2030, supported by investments in the housing, transport, and oil and gas infrastructure projects. In June 2026, the Abu Dhabi Projects and Infrastructure Centre (ADPIC) revealed that it is overseeing more than AED200 billion ($54.5 billion) worth of capital projects across over 600 developments spanning housing, transport, healthcare, education, tourism, and community infrastructure, reinforcing the emirate’s long-term strategy for economic diversification and sustainable urban growth.
GlobalData’s Construction in the UAE – Key Trends and Opportunities to 2030 (Q3 2026) report provides detailed market analysis, information, and insights into the UAE’s construction industry, including –
– The UAE’s 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’s 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. It provides –
– Historical (2021–2025) and forecast (2026–2030) 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
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Assess business risks, including cost, regulatory and competitive pressures_x000D_
Evaluate competitive risk and success factors
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