YOUSEF AL ARABI (ABU DHABI)
The building materials and hardware market in the UAE is expected to generate revenues of Dh17.54 billion ($4.78 billion) by end of 2024, according to Statista, a statistics company.
A recent report by the company confirmed the increasing demand for high-quality building materials in the UAE, driven by the country’s ambitious infrastructure development projects. The report anticipates an annual growth rate of 2.42% in the sector during the period 2024-2028 due to the rising demand for housing and a continued interest in home renovation.
The data includes sales from companies to individuals (B2C), encompassing paint, wallpaper, tools and machinery, grass and garden supplies, heating and cooling supplies, and floor coverings. The UAE is known for its rapid expansion, strong economy, and high living standards. The construction industry has played a pivotal role in driving the growth of the building supplies market in recent years. With the booming residential market driven by population growth and increased foreign investment, the market is expected to witness significant developments in the sector.
Eng. Tarek Saad, CEO of Al Binaya Contracting & Deco Group, noted that demand for building supplies is currently on the rise and is expected to continue improving in the coming period, in line with urban expansion. He mentioned that the government’s focus on sustainable development will drive growth in the construction sector in the coming years. The government is also pushing towards several sustainable initiatives such as the Dubai Urban Development Plan 2040, the Energy Strategy 2050, the Sheikh Zayed Housing Programme, and the Dubai Tourism Strategy.
Saad added that the improvement in demand coincides with stable prices at reasonable levels. He pointed to the recovery of the real estate market and its close relationship with the building supplies market, highlighting the variety of goods including porcelain, ceramics, and garden supplies, and the increasing demand for locally manufactured products.
According to data from BNC Network, a network specialising in monitoring projects in the Middle East, the value of contracting contracts concluded in the UAE grew by 99% in 2023, reaching about Dh347.8 billion ($94.78 billion), compared to Dh174.58 billion ($47.57 billion) in 2022. The UAE accounted for 42% of the total contracts concluded in the Gulf Cooperation Council countries, which collectively recorded contracts worth $226.95 billion last year. According to BNC Network data, real estate maintained its lead, accounting for about 54% of the total value of contracts concluded in the UAE in 2023.