The value of awarded construction contracts in the UAE rose 14% y-o-y in 2024, reaching USD 121 bn, Al Etihad reports, citing a BNC Network report. This accounted for 44.5% of the total value of contracts awarded in the GCC, which amounted to USD 271.4 bn. Contracts in the UAE were spread across five key sectors: industrial facilities, oil and gas, transportation, real estate, and utilities.

The breakdown: Real estate led the way with USD 66 bn, representing 54% of the total value. The oil and gas sector followed with USD 33.3 bn, accounting for 27.6% of the total. Utilities reached USD 9.2 bn, making up 7.7% of the total, while the transportation sector amounted to USD 9 bn, contributing 7.4%. Industrial contracts totaled USD 3.6 bn, representing 3% of the total.

On the regional front: Looking at the broader GCC, construction contracts were distributed across the following sectors: USD 104.3 bn for real estate, USD 87 bn for oil and gas, USD 49.3 bn for utilities, USD 21.3 bn for transportation, and USD 9.5 bn for industrial projects.

How do the estimates compare? Kamco Invest pegged the total value of UAE contracts during 2024 at USD 84.1 bn, with construction accounting for 47.5% of the total (USD 40 bn). Meanwhile, Emirates NBD’s estimates show that the UAE awarded some USD 83 bn in new project contracts in 2024 including construction.

The outlook for 2025 remains positive, with the construction boom in the UAE expected to continue. Any potential slowdown is anticipated to be mild, CEO of BNC Network Avin Gidwani told Al Etihad. This forecast aligns with projections from Emirates NBD, which estimates a pipeline of USD 659 bn in construction projects. Meanwhile, Mordor Intelligence predicts a 5% compound annual growth rate (CAGR) for the UAE’s infrastructure sector from 2025 to 2030, driven by projects in transportation, renewable energy, and real estate.

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