U.A.E. Civil Construction Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2025 - 2030)

U.A.E. Civil Construction Market Size

U.A.E. Civil Construction Market Trends & Growth Drivers

Energy Efficiency Is Key Market Trend

• The U.A.E. Energy Strategy 2050 was introduced in response to the increasing carbon emissions due to the country's ongoing urbanization and industrialization. This aims to reduce carbon emissions by 70% by expanding the use of renewable energy sources for power generation.
• Construction companies are coming up with new technologies and eco-friendly construction materials, such as solar panels, recycled materials, and insulated windows and doors to reduce carbon emissions.
• Mohammed Bin Rashid Al Maktoum Solar Park is one of the trending projects related to renewable energy in the U.A.E. This will be the largest single-site solar park in the world with a production capacity of 5,000 MW and the ability to reduce up to 6.5 million tons of carbon emissions annually. It is being built with a total investment of USD 13.61 billion, and it is expected to be completed by 2030.

Scarcity of Water Is Key Driver for Market

• The U.A.E. has an arid desert climate, due to which there is a scarcity of water.
• This is a challenge for the population, which is why initiatives such as seawater desalination and the construction of water reservoirs are characterize the civil construction space of the country.
• Dubai Electricity and Water Authority (Dewa) has declared the completion of the first phase of the Aquifer Storage and Recovery (ASR) project.
• This project is expected to be completed by 2025 and has one of the largest storage capacities in the region, with 6,000 million imperial gallons of water stored.

U.A.E. Civil Construction Market Analysis

Infrastructure Type Insights

• Transportation infrastructure will hold the largest market share, of 55%, in 2024, and it is also the fastest-growing category, with a CAGR of 7% by 2030.
• This is due to the diversification of the economy, rapid urbanization, and rise in population.
• The government of U.A.E. is investing significant amount on their transportation infrastructures such as USD 11 billion on Etihad Rail project, USD 5.9 billion on hyperloop project between Dubai and Abu-Dhabi, and USD 2.7 billion on Sheikh Zayed double-deck road project.

The construction types covered in the report include:

• Transportation (Largest and Fastest-Growing Category)
• Electricity
• Water
• Others

Category Insights

• New construction is the larger category with a market share of 70% in 2024, and it is also the faster-growing, with a CAGR of 6.5% by 2030.
• This is due to the expanding population and emphasis on economic diversification.
• There are various new and upcoming civil construction projects in the U.A.E., such as Hail and Gasha Sour Gas Development, Etihad Rail, and Mohammed Bin Rashid City.

The categories analyzed in this report are:

• New Construction (Larger and Faster-Growing Category)
• Renovation

End User Insights

• The government category is the largest, with a market share of 80% in 2024, and it is also the fastest-growing, with a CAGR of 8% by 2030.
• This is due to the government's continued development projects and its decision to refocus its spending on infrastructure, rather than oil and gas.
• Additionally, government agencies operate most of the civil infrastructure, such as roads, railways, and airports, since they can afford to invest the necessary funds for its building, which private entities cannot.

The end users analyzed in this report are:

• Government (Largest and Fastest-Growing Category)
• Industries
• Others

Regional Analysis

• Geographically, Dubai will hold the largest market share, of 45%, in 2024 and witness the fastest-growing revenue, with a CAGR of 6%, in the forecast period.
• This growth is due to its dense population, ongoing megaprojects, and growing tourism.
• According to a report, Dubai is the most populous city in the country with 1,137,347 people, and it is also its largest industrial area.
• Additionally, the city has more mega projects compared to other cities, such as Etihad Rail project, Dubai Metro Expansion, Abu-Dhabi Midfield Expansion, Al-Maktoum International Airport and many more.

The emirates analyzed in this report include:

• Abu Dhabi
• Dubai (Largest and Fastest-Growing Emirate)
• SharjahZ
• Ajman
• Umm Al-Quwain
• Fujairah
• Bavaria (Bayern)

U.A.E. Civil Construction Market Share

The U.A.E. civil construction market is considered highly fragmented because of the presence of both international and domestic players, which has raised the bar of innovation and offered wide-ranging expertise and competitive prices to consumers. The transition of the market toward renewable energy has increased the demand for sustainable and advanced alternatives, has increased the complexity and competition in the market. Market players can establish a significant presence in this quickly growing industry by observing current trends, comprehending market dynamics, and implementing technical advancements.

U.A.E. Civil Construction Market Company News

• In April 2024, a joint venture of Alec Engineering & Contracting and Butec was selected to design and build the first waste-to-energy plant project in Abu Dhabi.
• In April 2024, as part of the Al Shindagha Corridor Improvement project, the Roads & Transport Authority (RTA) of Dubai awarded a contract to local contractor Wade Adams to build the Al Khaleej Street Tunnel.
• In October 2023, Khansaheb became the first Middle Eastern contractor to use a battery energy storage system (BESS) in its construction equipment.