Construction in the United Arab Emirates (UAE) – Key Trends and Opportunities to 2025 (Q2 2021)

The UAE’s construction sector declined by an estimated 4.8% in real terms in 2020, due to the Coronavirus (COVID-19) outbreak and low global oil demand. GlobalData maintains its expectation that the construction industry will rebound in 2021, and record growth of 3.1%. The postponement of Expo 2020 increasingly looks like a boon that will allow Dubai to ride a wave of post-COVID-19 enthusiasm for new business opportunities in the short term. Thereafter, the industry is expected to expand at an annual average of 3.8% between 2022 and 2025. The approval of a new Dubai Building Code in October 2020 is a positive development; the new code outlines a revised set of construction rules and standards and seeks to reduce construction costs by streamlining building rules.

As part of its economic support program, in July 2020 the government announced a new package worth AED1.5 billion (US$408 million), including the cancellation of certain fines imposed by the government and the customs department, tax reimbursements to hotels and restaurants, and providing various banking facilities to individuals and corporates. In October 2020, the government announced an additional AED500 million (US$136.1 million) of a stimulus package to support the local economy, and then a further AED315 million (US$85.8 million) in early January 2021.

The medium-term outlook still looks promising, as the government continues with its infrastructure plans, given various government initiatives such as the Energy Strategy 2050, the Sheikh Zayed Housing Programme and the Dubai Tourism Strategy. Infrastructure projects are a key part of the UAE's economic expansion, as it seeks to build efficient transport and logistics networks as well, as reliable supplies of clean energy. Furthermore, Israel and the UAE have reached a historic deal to normalize ties opening up investment opportunities, where the countries agreed to develop a joint strategy to boost co-operation in the energy sector.

GlobalData’s "Construction in the United Arab Emirates (UAE) – Key Trends and Opportunities to 2025 (Q2 2021)" report provides detailed market analysis, information and insights into the UAE construction industry, including –

– The UAE 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 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 (2016-2020) and forecast (2021-2025) 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

– Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.

– Assess market growth potential at a micro-level with over 600 time-series data forecasts.

– Understand the latest industry and market trends.

– Formulate and validate strategy using GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

– Outlook

– Latest news and developments

– Construction Projects Momentum Index

4.2 Commercial Construction

– Outlook

– Project analytics

– Latest news and developments

4.3 Industrial Construction

– Outlook

– Project analytics

– Latest news and developments

4.4 Infrastructure Construction

– Outlook

– Project analytics

– Latest news and developments

4.5 Energy and Utilities Construction

– Outlook

– Project analytics

– Latest news and developments

4.6 Institutional Construction

– Outlook

– Project analytics

– Latest news and developments

4.7 Residential Construction

– Outlook

– Project analytics

– Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 CRI Methodology

7.4 GlobalData Construction

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List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: The UAE, Key Economic Indicators

Table 3: The UAE, Commercial Construction Output by Project Type (Real % Change), 2016-2025

Table 4: The UAE, Top Commercial Construction Projects by Value

Table 5: The UAE, Industrial Construction Output by Project Type (Real % Change), 2016-2025

Table 6: The UAE, Top Industrial Construction Projects by Value

Table 7: The UAE, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025

Table 8: The UAE, Top Infrastructure Construction Projects by Value

Table 9: The UAE, Energy and Utilities Construction Output by Project Type (Real % Change), 2016-2025

Table 10: The UAE, Top Energy and Utilities Construction Projects by Value

Table 11: The UAE, Institutional Construction Output by Project Type (Real % Change), 2016-2025

Table 12: The UAE, Top Institutional Construction Projects by Value

Table 13: The UAE, Residential Construction Output by Project Type (Real % Change), 2016-2025

Table 14: The UAE, Top Residential Construction Projects by Value

Table 15: The UAE, Key Contractors

Table 16: The UAE, Key Consultants

Table 17: The UAE, Construction Output Value (Real, US$ Million)

Table 18: The UAE, Construction Output Value (Nominal, AED Million)

Table 19: GlobalData Construction Market Definitions

Table 20: Risk Dimensions

Table 21: Ratings, Scores and Definitions

List of Figures

List of Figures

Figure 1: Middle East and Africa, Construction Output (Real % Change), 2020 and 2021

Figure 2: The UAE, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: The UAE, COVID-19 Confirmed Cases

Figure 4: The UAE, Risk Summary

Figure 5: The UAE, Risk Regional Comparison

Figure 6: The UAE, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025

Figure 7: The UAE, Construction Output Value, by Sector (Real, US$ Million), 2016-2025

Figure 8: The UAE, Total Bank Credit to Construction and Real Estate (AED Million)

Figure 9: The UAE, Construction Projects Momentum Index

Figure 10: The UAE, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 11: The UAE, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 12: The UAE, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 13: The UAE, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 14: The UAE, Total Non-Oil Export (AED Million)

Figure 15: The UAE, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 16: The UAE, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 17: The UAE, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 18: The UAE, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 19: The UAE, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 20: The UAE, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 21: The UAE, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 22: The UAE, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 23: The UAE, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 24: The UAE, Headquarters of Key Consultants (% of Total Project Pipeline)

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