The UAE’s construction sector is forecast to reach $130.8 billion by 2029, up 22% from 2024, driven by state-led projects and diversification efforts, according to Knight Frank.
Output is estimated at $107.2 billion in 2024, with an annual growth rate of around 4%. Construction dominates the UAE’s project pipeline at 62%, ahead of transport (12%), power (7%) and water (5%).
Within construction, mixed-use projects make up 42%, residential 28%, data centers 9%, and hospitality 4%. Dubai leads activity, with 75% of its contracts in construction, while oil and gas accounts for just 3%, reflecting diversification.
Major upcoming projects include Palm Jebel Ali, The Oasis by Emaar, Marsa Al Arab, Naia Island, and Therme Dubai, alongside expansions at Dubai Hills Estate. The emirate is also extending its metro Blue Line by 15 km by 2029.
Abu Dhabi is focused on infrastructure, including a 150-km high-speed rail link to Dubai (due 2030) and a 131-km metro system. The emirate delivered 890 residential units in H1 2025, with 33,074 under construction for delivery by 2029.
“Continuous strategic development is reshaping the UAE’s real estate landscape, with strong demand in both residential and office sectors ensuring sustained construction growth,” Knight Frank noted.