UAE’s infrastructure sector expected to grow 5% in 2025

International reports from specialised construction and infrastructure research firms have highlighted the UAE’s position as one of the most active construction markets regionally and globally.

The reports predict that the country’s infrastructure sector will continue to grow in 2025, driven by ongoing and upcoming projects in development.

According to “Mordor Intelligence,” a market research firm, the UAE’s infrastructure sector is expected to achieve a compound annual growth rate (CAGR) of 5 per cent from 2025 to 2030. This growth will be supported by the government and private sector launching high-quality projects, alongside increased investments in infrastructure across various sectors such as transportation, renewable energy, and real estate.

ProTenders, a leading Construction Intelligence and eTendering platform, also confirmed that the UAE is one of the most active construction markets within the Gulf Cooperation Council, with over 52 per cent of its active projects currently in planning, design, or tender stages.

According to ProTenders, the value of planned construction projects in the UAE at the start of this year reached approximately $112 billion, while projects under development are valued at around $56.5 billion, with tenders exceeding $62.8 billion, according to the company’s latest report on project activity in the country.

ProTenders is currently tracking a number of ongoing and upcoming construction projects in the UAE, with a total value of $772 billion. These projects highlight the global competitiveness of the country’s infrastructure sector, with both local and international key players involved.

MarkWide Research, a consulting firm, also emphasised that the UAE’s commitment to developing world-class infrastructure has positioned it as a global hub for trade, tourism, and investment.

The country boasts a modern and efficient infrastructure network that includes transportation, energy, telecommunications, and urban development.

Meanwhile the UAE’s real estate sector maintained its growth momentum throughout 2024, marked by an increase in real estate projects and infrastructure investments, reinforcing its position as a key pillar of the country’s economic growth.

The vibrant real estate markets across the emirates underscored the UAE’s status as a global hub for property investments and an attractive destination for high-net-worth individuals who play a vital role in stimulating market activity, particularly in luxury real estate.

The property markets in Abu Dhabi, Dubai, Sharjah, and Ajman witnessed significant activity in transaction volumes over the past year, maintaining positive performance levels thanks to diverse investment opportunities and growing demand for various property types.

According to official data from the local real estate authorities of the four emirates, the total value of real estate transactions reached approximately Dhs893 billion by the end of 2024, with over 331,300 transactions recorded. Mortgage transactions alone exceeded Dhs229.3 billion, encompassing over 50,000 transactions, excluding mortgages in Ajman.

In Abu Dhabi, the total real estate transactions amounted to Dhs79.3 billion through 25,046 sales and mortgage transactions across various property types by the end of 2024.

The “Dari” platform by the Department of Municipalities and Transport in Abu Dhabi reported that total sales since the beginning of the year exceeded Dhs46.5 billion, executed through 14,816 sales and purchase transactions.

The UAE construction market size was $94 billion in 2023 and the market will achieve an AAGR of more than 3 per cent during 2025-2028, according to a report released by GlobalData, a data analytics and consulting company, headquartered in London.

The growth is attributed to the increase in investments in transport and renewable energy infrastructure, with improvements in the electric vehicle market, according to the report.

Residential construction captured the highest share of the UAE’s construction market last year, according to the report, which indicated that the real estate sector continued its growth momentum with expectations that the sector will maintain good growth rates during the current year 2024 supported by the launch of qualitative infrastructure projects and investments by the government and the private sector.

Meanwhile the number of real estate transactions in the Emirate of Ajman during 2024 reached 15,125 real estate transactions with a total value exceeding Dhs20.5 billion, reflecting a remarkable growth of 21 per cent compared to 2023.

Sheikh Abdulaziz Bin Humaid Al Nuaimi, Chairman of the Ajman Department of Land and Real Estate Regulation, stated that the exceptional performance of the real estate market over the past year is evidence of the sector’s strength and a positive indicator that enhances Ajman’s position as a premier investment destination and promises a bright future for the emirate’s economy.