The Current State of the Construction Industry in Dubai

The UAE is renowned for its strong economy and living conditions. The construction sector has had a major effect in shaping these results in recent years, as it is one of the country’s largest employers and worldwide suppliers of goods.

The construction industry in the UAE is estimated to have expanded by an average of 2% in 2022, with an increase in economic activities, as the COVID-19 pandemic adversely affected travel and business in the UAE, resulting in economic recovery for the country’s petroleum exports. 

The market is projected to expand by 3.3 percent in 2023, thanks to the continuation of the government’s emphasis on infrastructure investments.

Keep on reading till the end to learn more about the current state of the construction services industry in the UAE.

Overview of The Construction Industry in UAE

UAE’s construction industry underwent radical changes over recent years, with innovation and sustainability leading the way. As building in the UAE looks to 2023, the trends are expected to evolve and continue to influence the future of construction.

The UAE construction market is projected to reach a value of USD 133.53 billion by 2027, showing an annual growth rate of 4.69%.

Sustainable construction has picked up steam in the Emirates in recent years, and its momentum is expected to increase further in 2023, as information about environmental issues continues to rise among the masses.

UAE Construction Market Trends Analysis

The UAE’s construction sector is expected to grow annually in the range of 3.7-4.2% from 2024 to 2027, as a result of investments in infrastructure, renewable energy, oil and gas, housing, industrial, and tourist projects.

The government of the UAE is taking the lead on sustainable construction, investing in renewable energy sources and electric vehicles by allocating funds to drive down carbon emissions. In doing so, the government is creating an eco-friendly industry that emphasises sustainability.

As the U.A.E. looks toward the goal of reducing the carbon footprint of its industry by 2050, green building materials have become increasingly important to its sustainable construction industry.

The construction industry is one of the foundations of the UAE economy, and its potential is attracting interest all over the world. Economic development in the UAE is driven by the construction industry.

Scope of Construction Industry in the UAE – Market Analysis

The construction services industry in Dubai is undergoing massive advancements in terms of technological landscape as well as construction methodology. With the rapid technological improvements now available in construction, civil construction firms can now complete projects faster, and with greater efficiency. 

The trend of using technology in construction has been increasingly pronounced during the last few years. Technology can be used to streamline processes such as planning, design, project preparation, quality evaluation, cost estimate, and scheduling. For example, 3D-printing technology can be used to create complex structures quickly and easily.

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As a result; there are several chances for expansion in the construction sector for both construction businesses and individuals who want to work in the sector in the United Arab Emirates. 

UAE Construction Industry Segments 

The construction market contains a long and multifaceted list of activities relating to upcoming, ongoing, and growing construction projects in different sectors, including geotechnical (underground structures) and superstructures in residential, commercial, and industrial structures, infrastructure building (such as roads and railways), and power generation.

Residential Construction Industry Segment

Demand for residential housing is projected to increase thanks to investments stemming from the Sheikh Zayed Housing Program, which is designed to encourage new construction projects targeting low-income residents.

Commercial Construction Industry Segment

Development of the commercial construction sector will be supported by the ongoing recovery of the tourism industry and hospitality industries. Dubai’s plan to attract 25 million tourists by 2025 is also expected to boost the industry’s output.

Industrial Construction Industry Segment

The government’s expanded interest in this area, along with its efforts to expand the economy and diversify it, will help the manufacturing sector realise significant growth. The government intends to support noteworthy industrial development under the UAE Economic Vision 2030 plan.

Infrastructure Construction Industry Segment

The government’s effort to develop a sustainable transportation infrastructure will affect the growth of the sector. The regulatory framework for public-private partnerships in the traffic and transportation system in 2030 is expected to accelerate the development of new partnerships in the sector over the next 10 years.

Energy and Utilities Construction Industry Segment

Additional investment in renewable energy projects will permit the vitality and utilities sector to be carbon neutral by 2050.

Intuitional Construction Industry Segment – Infrastructure Projects

There are great opportunities to significantly increase development in the institutional construction sector over the next few years. Investment in health, education, and museum projects is projected to support this growth.


Construction trends in the UAE for 2023 will, in large part, be focused on sustainability. UAE currently has a wide range of mandatory commitments designed to curtail the growth of construction pollution, along with expanding customer interest in green construction projects. 

These are the reasons why the construction industry in the UAE is demonstrating itself to be well-positioned to meet the rising demand for environmentally friendly construction practices.

Land Sterling is the leading real estate and construction advisory services company in the UAE with extensive experience the UAE’s construction market. Visit Land Sterling for more insights into the construction industry in Dubai, UAE. 


Whether constructing real estate for business or residential purposes, opening a business in the construction sector in Dubai is one of the most profitable ventures in the long run.

The cost of construction in the UAE is lower than most – if not all – developed cities mainly due to intense competition and low wages. This is the reason why there is so much construction in Dubai.

The construction sector in the UAE is estimated to have expanded by 2.2% in 2022.

The three principal sectors in the construction industry are residential construction, commercial construction, and industrial construction.

Sunjay Shanker MRICS


Sunjay Shanker MRICS

Sunjay Shanker is a Certified Project Manager Professional (PMP), Chartered Member (MRICS) and an accomplished professional with a wealth of expertise in project management and cost consultancy. With over 15 years of experience in senior positions, Sunjay has established himself as the Director of Project Management at Land Sterling. His educational background includes a Bachelor's degree in Mechanical Engineering and a Master's degree in Business Administration, further enhancing his skill set and strategic thinking in managing complex projects.


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