UAE Construction Market Intelligence Q1 2024

Despite ongoing local and global challenges such as persistent inflation, elevated interest rates, and geopolitical tensions, the UAE projects market remains positive. As of Q1 2024, it is estimated at $590 billion or a 15% share of the overall Middle East and North Africa total pipeline value of $3.9 trillion. Residential projects are projected to account for $125 billion (21%), while mixed-use projects represent $232 billion (39%). In 2023, the number of awarded projects in the UAE reached $87 billion compared to $31 billion in 2022, demonstrating significant progress in the nation’s economic diversification and investment.

Amid the thriving UAE construction sector, feedback from market sources highlights financial constraints arising from intense local demand competition, elevated energy prices, increased labour expenses resulting from the global surge in the cost of living, and fluctuations in freight and shipping costs.

This report provides updates on market trends, commodities, and their impact on construction costs in the UAE.