Consistent Growth
After reaching a record $107.2 billion in 2024, construction output is forecast to grow by 4% annually through 2029. The sector dominates the UAE’s development pipeline, accounting for 62% of future projects, with mixed-use (42%) and residential real estate (28%) leading the way.
Dubai and Abu Dhabi at the Forefront
Dubai and Abu Dhabi account for 85% of contract value since 2020, with Dubai focused heavily on construction and Abu Dhabi balancing oil and gas. Major upcoming projects include Palm Jebel Ali, The Oasis by Emaar, Marsa Al Arab, Naia Island, and the Dubai Metro Blue Line extension.
Population and Real Estate Drivers
Dubai’s population is expected to rise to 5.8 million by 2040, fueling demand for housing and office space. Nearly 8.2 million sq ft of office space is under development, though demand is expected to outpace supply. Residential sales remain strong, with villas and apartments recording double-digit growth in 2025.
Vision-Led Expansion
The sector is central to national strategies such as We the UAE 2031, Dubai Urban Masterplan 2040, and Abu Dhabi Vision 2030, which prioritize housing, infrastructure, and smart city development.
“The UAE construction industry is in a period of robust growth and transformation, driven by diversification, tourism and infrastructure investment,” said Faisal Durrani, Knight Frank.
Outlook
With rising population, landmark projects, and government-led initiatives, the UAE’s construction industry is on track to surpass $130 billion by 2029, cementing its role as a cornerstone of the nation’s diversification and urban transformation.
