Market Research Report
UAE Construction Market - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence LLP||Product code||916850|
|Published||Content info||176 Pages
Delivery time: 2-3 business days
|UAE Construction Market - Growth, Trends, and Forecast (2019 - 2024)|
|Published: November 1, 2019||Content info: 176 Pages||
The UAE construction market is expected to register a CAGR of 5.5% over the forecast period, 2019-2024.
The UAE construction market covers the growing construction projects in different sectors, like commercial construction, residential construction, industrial construction, infrastructure (transportation construction), and energy and utility construction.
Commercial infrastructure will be the clear outperformer within the broader construction sector of the United Arab Emirates in the coming years, as economic diversification gathers pace and the various emirates focus on developing higher-value service industries,
Expo 2020 driving short-term commercial boom: Commercial infrastructure growth will continue to center on Dubai in the short-term, largely due to ongoing construction activity associated with Expo 2020.
In November 2017, Cimolai Rimond Middle East, a joint venture between Cimolai and Rimond, secured a deal to construct Al Wasl Plaza in Dubai. The project is the final major design element of the Expo 2020 site, which will focus around a planned 438-hectare site, the largest ever created for a World Expo.
Located in Jebel Ali, construction at the site is expected to cost between USD 2 billion and USD 4 billion. The site is estimated to feature 180 purpose built pavilions, an underground service rail network and a photovoltaic solar power canopy capable of producing 50% of the site's power. The work is expected to be completed for 2019.
Abu Dhabi aims to sustain long-term growth: In the long-term, investments in Abu Dhabi's commercial building sector will help to offset an expected decline following the conclusion of Expo 2020. A number of big-ticket commercial projects are moving through the construction pipeline, which will help in sustaining elevated growth rates.
Abu Dhabi's share of the pipeline is estimated to grow in the coming years, as the government prioritizes efforts to expand the emirate's economic base beyond oil. Abu Dhabi's ambitions in the commercial infrastructure space, its government aims to attract 7.9 million tourists annually by 2030 under the auspices of its Abu Dhabi 2030 Plan, up from 4.4 million in 2016. Furthermore, the emirate hopes to expand its retail and office space to 4 million and 7.5 million square meters by 2030, respectively, up from 2.5 million and 1.5 million square meters in 2013.
The UAE construction market is highly competitive, with the presence of major international players. The UAE construction market presents opportunities for growth during the forecast period, which is expected to further drive market competition. With a few players holding a significant share, the market studied has observable levels of consolidation.