GlobalData’s Construction in the UAE – Key Trends and Opportunities to 2029 (Q1 2025) 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

GlobalData expects the UAE’s construction industry to expand by 4.2% in real terms in 2025 and register an average annual growth of 4% from 2026 to 2029, supported by investments in the transport, oil and gas, energy, and housing infrastructure projects.

Growth will be driven by Dubai’s AED16 billion ($4.4 billion) 2024-2027 Main Roads Development Plan

Previously, in November 2024, the emirate had approved the five-year (2025-2029) plan for internal roads development; it involves 21 projects across 12 residential, commercial, and industrial areas for the construction of 634km of new roads at a cost of AED3.7 billion ($1 billion).

In a recent development, in January 2025, Dubai's Roads and Transport Authority (RTA) awarded a contract worth AED1.5 billion ($408.4 million) for the Al Fay Street Development. The project includes the development of five key intersections featuring 13,500m of bridges and 12,900m of roads.

The government's plan, announced in early February 2025, to increase the logistics sector's value to AED200 billion ($54.5 billion) annually by 2030 will also support industry growth during the forecast period and enhance its global trade hub status.

To achieve this, the government will focus on expanding infrastructure, modernizing supply chain technologies, and attracting foreign direct investment (FDI). Previously, in November 2024, the UAE announced the National Investment Strategy 2031, through which, it aims to double FDI to AED1.3 trillion ($354 billion) by 2031.

To achieve this, the government will attract new investments in priority sectors, expand existing projects, strengthen international partnerships, improve investor relations, and boost overall competitiveness.