MAYS IBRAHIM (ABU DHABI)
The UAE construction sector remains a key player in the GCC region, with $222 billion worth of ongoing projects and a pipeline of $659 billion in potential projects, according to a recent report by Emirates NBD Research.
The value of project investments in the UAE remained robust in 2024, with $83 billion worth of contracts awarded during the year, following a similarly strong $93 billion in 2023.
This reflects a broader trend across the Gulf Cooperation Council (GCC) region, where project spending is expected to continue fueling growth through 2025 and beyond, according to the report.
Countries in the region are working towards ambitious development, diversification, and net-zero targets, driving significant investments across various sectors, it noted.
Across the GCC, the value of contracts awarded in 2024 reached $271 billion, marking a nearly 9% increase from the previous year. This growth builds on the 99% year-over-year surge seen in 2023.
"In addition to the contracts awarded in 2024, there is still a sizeable number of projects for which contracts were awarded in earlier years but where construction activity is ongoing. At the time of writing there is around $790 billion worth of projects currently in execution across the GCC," the report stated.
The GCC's project pipeline is equally substantial, according to Emirates NBD Research. In addition to projects in execution, there are $1.25 trillion worth of budgeted projects, as well as an additional $1.5 trillion worth of projects in the planning phase.
The UAE and Saudi Arabia dominate these future spending pipelines, with a heavy concentration in the construction sector.
Currently, $244 billion worth of construction projects are in execution across the region, with another $1.43 trillion in the pipeline.
In the UAE, the majority of projects are concentrated in Abu Dhabi and Dubai, which together account for 87% of all projects currently in execution.
Abu Dhabi holds a 49% share, valued at $109 billion, while Dubai has a 38% share, worth $83 billion.
"There are, however, significant differences in the profile of which sectors these projects are taking place in, with projects in Dubai heavily skewed to construction activity. Projects currently in execution in Abu Dhabi are far more distributed across sectors, with the largest shares in gas, construction, and oil."
Notably, these two emirates account for 90% of all projects in the pipeline, according to the report.