Uae Construction Market
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UAE Construction Market, By Type of Construction (Building Construction, Heavy & Civil Engineering Construction, Specialty Trade Contractors, Land Planning & Development); By Type of Contractor (Large Contractor, Small Contractor); By End Use (Public, Private), Trend Analysis, Competitive Landscape & Forecast, 2019–2030
- Published Date: June 2024
- Report ID: BWC24435
- Available Format: PDF
- Page: 200
Report Overview
Booming tourism, the government’s increasing investments in the development of infrastructure and energy sector, and rising demand for sustainable housing are expected to boost the growth of UAE Construction Market during the forecast period between 2024 and 2030.
UAE Construction Market – Industry Trends & Forecast Report, 2030
UAE Construction Market size by value was estimated at USD 94.56 billion in 2023. During the forecast period between 2024 and 2030, the UAE Construction Market size is expected to expand at a CAGR of 5.10% reaching a value of USD 118.43 billion by 2030. The UAE Construction Market is fueled by several factors. Government investments in infrastructure, housing, and tourism are a major driver. This includes ambitious sustainability goals and a focus on renewable energy. Demand for high-end residential properties and government support for homeownership are keeping the residential sector strong. Additionally, the construction industry is embracing digital transformation with technologies like AI and prefabrication to improve efficiency.
Construction – Overview
Construction is the process of bringing an idea to life and transforming raw materials and blueprints into buildings, bridges, and other structures. It involves skilled professionals like architects, engineers, and laborers. From planning and permits to foundations and finishing touches, construction ensures a safe and functional space is built. This vast industry includes building houses, skyscrapers, roads, dams, and more, shaping the world around us.
UAE Construction Market
Growth Drivers
Heavy Investments in Infrastructure Development
The UAE Construction Market is witnessing robust growth driven by substantial investment in infrastructure development. Key projects, including the expansion of transport networks, smart city initiatives, and the construction of world-class airports and seaports, are at the forefront. Government strategies like the UAE Vision 2021 and the Dubai Plan 2021 are channeling funds into urban development, enhancing the sector's dynamism. Additionally, the upcoming Expo 2020 has accelerated infrastructure investments, positioning the UAE as a global hub for tourism, trade, and logistics, thereby fostering sustained growth in the construction industry.
Challenges
Fluctuations in Oil Prices
The UAE Construction Market is facing uncertainty due to fluctuating oil prices. As oil revenue significantly influences the national economy, variations in prices affect government budgets and project funding. This volatility leads to delays and scaling back of construction projects, impacting contractors and suppliers. While lower prices may reduce operational costs, they also decrease available capital for new developments. Conversely, higher prices can boost investment but increase material and labor costs. Balancing these factors is crucial for stakeholders to navigate the challenges and maintain growth in the sector amidst unpredictable oil price movements.
Impact of Escalating Geopolitical Tensions on UAE Construction Market
The escalating geopolitical tensions, particularly in the Middle East, have significant implications for the UAE Construction Market. Rising political instability can deter foreign investments and delay ongoing projects. For instance, the Qatar diplomatic crisis in 2017 disrupted supply chains, leading to material shortages and increased costs. Additionally, fluctuations in oil prices due to regional conflicts impact government revenues, reducing funds for infrastructure projects. The Yemeni conflict also affects trade routes and increases security costs for construction firms. Despite these challenges, the UAE's strategic initiatives, such as the "Projects of the 50" launched in 2021, aim to attract USD 150 billion in foreign investment to diversify the economy and sustain growth in the construction sector. These measures indicate resilience in the face of geopolitical risks.
UAE Construction Market
Segmental Coverage
UAE Construction Market – By Type of Construction
By type of construction, the UAE Construction Market is divided into Building Construction, Heavy & Civil Engineering Construction, Specialty Trade Contractors, and Land Planning & Development segments. The building construction segment is the largest type of construction in the UAE Construction Market. The segment encompasses residential, commercial, and institutional structures. It is driven by significant investments in infrastructure, tourism, and real estate projects, including iconic skyscrapers, luxury hotels, and expansive residential developments. The demand is fueled by a growing population, urbanization, and the country's vision to diversify its economy away from oil dependency. High-profile projects like the Dubai Expo 2020 and ongoing developments in Abu Dhabi contribute to the segment's dominance, making it a critical component of the UAE's construction industry.
UAE Construction Market – By Type of Contractor
Based on type of contractor, the UAE Construction Market is divided into Large Contractor and Small Contractor segments. The large contractor segment holds the dominant position in the UAE Construction Market. The segment's prominence is driven by extensive infrastructure projects, urban development initiatives, and mega-projects such as Expo 2020, high-rise buildings, and large-scale residential communities. Large contractors have the financial capability, technical expertise, and resources to handle complex and sizeable projects, ensuring their leadership in the market. Their involvement in high-profile, government-backed projects further solidifies their significant market share and influence in the UAE Construction Market.
UAE Construction Market – By End Use
Based on end use, UAE Construction Market is divided into Public and Private segments. The private sector is a largr end use segment in the UAE Construction Market, driven by substantial investments in residential, commercial, and tourism-related projects. The sector has seen significant growth due to the UAE's strategic initiatives to diversify its economy away from oil dependence, coupled with its ambition to become a global business and tourism hub. Major developments in the segment include luxury residential complexes, high-end hotels, shopping malls, and commercial buildings, which cater to the rising demand from both domestic and international investors. The private sector's dynamic expansion is a critical driver of the overall construction market in the UAE.
Competitive Landscape
Major players in the UAE Construction Market include Wade Adams, Al Shafar General Contracting LLC, Al Hamad Group of Companies, AE Arma-Electropanc, Aegion Corp., Bechtel, CB&I LLC, Consolidated Contractors Group, Fluor Corp., Jacobs, Al Futtaim Carillion, Joannou And Paraskevaides Limited (JP), ACC Arabian Construction Company, Arabtec Constructions LLC, Abu Dhabi National Energy Co. PJSC, Emirtec, and Sobha Engineering & Contracting LLC. To further enhance their Market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.
Recent Developments
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In November 2023 – Dubai-based developer Wasl granted a construction contract worth AED 1.2 billion (approximately USD 1.4 billion) to China State Construction Engineering Corp., a Beijing-based company, to construct The Island, a 26-acre development that is expected to be the first in the region to allow legal gaming. A total of 1,400 hotel rooms were planned for the development.
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In September 2023 - Hassan Allam Holding, one of Egypt's leading construction companies, announced its expansion into the UAE on the occasion of 'Building Boundless Horizons: From Egypt to the UAE'.
Scope of the Report
Attributes |
Details |
Years Considered |
Historical Data – 2019–2023 |
Base Year – 2023 |
|
Estimated Year – 2024 |
|
Forecast Period – 2024–2030 |
|
Facts Covered |
Revenue in USD Billion |
Market Coverage |
UAE |
Product/Service Segmentation |
Type od Construction, Type of Contractor, End Use |
Key Players |
Wade Adams, Al Shafar General Contracting LLC, Al Hamad Group of Companies, AE Arma-Electropanc, Aegion Corp., Bechtel, CB&I LLC, Consolidated Contractors Group, Fluor Corp., Jacobs, Al Futtaim Carillion, Joannou And Paraskevaides Limited (JP), ACC Arabian Construction Company, Arabtec Constructions LLC, Abu Dhabi National Energy Co. PJSC, Emirtec, Sobha Engineering & Contracting LLC |
By Type of Construction
-
Building Construction
-
Heavy & Civil Engineering Construction
-
Specialty Trade Contractors
-
Land Planning & Development
By Type of Contractor
-
Large Contractor
-
Small Contractor
By End Use
-
Public
-
Private
- Research Framework
- Research Objective
- Product Overview
- Market Segmentation
- Executive Summary
- UAE Construction Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Heavy investment in infrastructure development
- Booming tourism industry driving demand for construction
- Growth in need for new residential and commercial buildings
- Attraction of foreign investment into construction projects
- Restraints
- Fluctuations in Oil Prices
- Skilled Labor Shortage
- Opportunities
- Growing demand for sustainable practices
- Increasing the use of PPPs for infrastructure
- Adoption of technologies like Building Information Modelling (BIM)
- Challenges
- Disruption of supply chains and project schedules
- Challenges posed by the hot and arid climate
- Growth Drivers
- Technological Advancements/Recent Developments
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- UAE Construction Market: Marketing Strategies
- UAE Construction Market Overview
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type of Construction
- Building Construction
- Heavy & Civil Engineering Construction
- Specialty Trade Contractors
- Land Planning & Development
- By Type of Contractor
- Large Contractor
- Small Contractor
- By End Use
- Public
- Private
- By Type of Construction
- Market Size & Forecast, 2019–2030
- Competitive Landscape
- List of Key Players and Their Offerings
- UAE Construction Company Market Share Analysis, 2023
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
- Impact of Escalating Geopolitical Tensions on UAE Construction Market
- Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
- Wade Adams
- Al Shafar General Contracting LLC
- Al Hamad Group of Companies
- AE Arma-Electropanc
- Aegion Corp.
- Bechtel
- CB&I LLC
- Consolidated Contractors Group
- Fluor Corp.
- Jacobs
- Al Futtaim Carillion
- Joannou And Paraskevaides Limited (JP)
- ACC Arabian Construction Company
- Arabtec Constructions LLC
- Abu Dhabi National Energy Co. PJSC
- Emirtec
- Sobha Engineering & Contracting LLC
- Other Prominent Players
- Key Strategic Recommendations
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Region
- Assumptions & Limitations
- Qualitative Research
*Financial information of non-listed companies can be provided as per availability.
**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.
List of Figures
Figure 1 UAE Construction Segmentation
Figure 2 UAE Construction Market Value Chain Analysis
Figure 3 Company Market Share Analysis, 2023
Figure 4 UAE Construction Market Size, By Value (USD Billion), 2019–2030
Figure 5 UAE Construction Market Share, By Type of Construction, By Value, 2019–2030
Figure 6 UAE Construction Market Share, By Type of Contractor, By Value, 2019–2030
Figure 7 UAE Construction Market Share, By End Use, By Value, 2019–2030
List of Tables
Table 1 UAE Construction Market Size, By Value (USD Billion), 2019–2030
Table 2 UAE Construction Market Share, By Type of Construction, By Value, 2019–2030
Table 3 UAE Construction Market Share, By Type of Contractor, By Value, 2019–2030
Table 4 Wade Adams Company Overview
Table 5 Wade Adams Financial Overview
Table 6 Al Shafar General Contracting LLC Company Overview
Table 7 Al Shafar General Contracting LLC Financial Overview
Table 8 Al Hamad Group of Companies Company Overview
Table 9 Al Hamad Group of Companies Financial Overview
Table 10 AE Arma-Electropanc Company Overview
Table 11 AE Arma-Electropanc Financial Overview
Table 12 Aegion Corp. Company Overview
Table 13 Aegion Corp. Financial Overview
Table 14 Bechtel Company Overview
Table 15 Bechtel Financial Overview
Table 16 CB&I LLC Company Overview
Table 17 CB&I LLC Financial Overview
Table 18 Consolidated Contractors Group Company Overview
Table 19 Consolidated Contractors Group Financial Overview
Table 20 Fluor Corp. Company Overview
Table 21 Fluor Corp. Financial Overview
Table 22 Jacobs Company Overview
Table 23 Jacobs Financial Overview
Table 24 Al Futtaim Carillion Company Overview
Table 25 Al Futtaim Carillion Financial Overview
Table 26 Joannou And Paraskevaides Limited (JP) Company Overview
Table 27 Joannou And Paraskevaides Limited (JP) Financial Overview
Table 28 ACC Arabian Construction Company: Company Overview
Table 29 ACC Arabian Construction Company Financial Overview
Table 30 Arabtec Constructions LLC Company Overview
Table 31 Arabtec Constructions LLC Financial Overview
Table 32 Abu Dhabi National Energy Co. PJSC Company Overview
Table 33 Abu Dhabi National Energy Co. PJSC Financial Overview
Table 34 Emirtec Company Overview
Table 35 Emirtec Financial Overview
Table 36 Sobha Engineering & Contracting LLC Company Overview
Table 37 Sobha Engineering & Contracting LLC Financial Overview
Table 38 Other Prominent Players Company Overview
Table 39 Other Prominent Players Financial Overview
Market Segmentation
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