The UAE is committed to diversifying its construction industry beyond residential projects. The country positions itself for sustained growth in the coming years by prioritizing infrastructure development and aligning with sustainability goals.

Despite residential building remaining the dominant force in the UAE’s $94 billion construction sector, a recent report by London-based data firm GlobalData predicts a shift towards significant growth fueled by government investments in infrastructure projects.

This push focuses on bolstering the country’s transportation and renewable energy sectors. Key projects include expanding Dubai’s metro network with a $4.9 billion blue line, adding 30 km of track, and introducing the Etihad Rail passenger train network.

These investments aim to improve mobility for residents and potentially unlock real estate development opportunities in newly connected areas.

Furthermore, the UAE’s ambitious target of having electric vehicles comprise half of all cars by 2050 is driving the construction of charging stations across all emirates, including near borders. This aligns with the country’s commitment to renewable energy.

The report highlights the continued strength of the residential sector, with Dubai and Abu Dhabi experiencing record-breaking growth in 2023. 

Real estate investments surged by 55% compared to the previous year, reaching $112 billion. This growth was driven by 113,655 investors, including 71,002 newcomers, marking a 20% increase from the prior year.

Dubai alone saw 166,400 real estate transactions valued at a staggering $172.61 billion, fueled by a surge in new investors. Abu Dhabi’s residential market also thrived, with property sales up 83% year-on-year.

Looking ahead, GlobalData anticipates increased investments in tourism and retail to propel growth in the commercial construction sector. This could encompass leisure facilities, office spaces, and retail establishments. Similarly, industrial construction, including chemical, pharmaceuticals, manufacturing, and waste processing plants, is expected to rise due to public and private sector investments.

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