The construction market in UAE was valued at 101.45 billion USD in 2020, and it is expected to hit 133.53 billion USD by the end of 2026. The market was heavily impacted during the COVID-19 crisis, but it is expected to bounce back with 3.1% growth in 2021.
The UAE government is focusing on building smart cities by digitalising government services and installing 2000+ Wi-Fi hotspots across the nation. These initiatives are bound to impact the UAE construction market positively. Besides, the liberal trade policies of the country are also expected to attract more foreign investors.
The construction market is the biggest sector of the overall UAE economy, which is more likely to experience rapid growth after the decline of 4.8% in 2020. Experts believe that the UAE construction industry will play a crucial role in the country’s economic boost and overall development. Continue reading to learn more about the expected growth, trends, and forecasts of the UAE construction market.
As already mentioned earlier, the construction sector of the country has declined by 4.8% last year due to the low global oil demand and COVID-19 outbreak. But the latest construction market analysis suggests that the market will surely rebound this year and pick up 3.1% growth.
Dubai and other UAE cities are likely to ride the wave of post-COVID-19 enthusiasm for new construction project opportunities. After that, the market will continue to expand at an annual average rate of 3.8% during the period between 2022 to 2025.
The approval of Dubai’s new building code has created a positive sentiment in the market. This code summarises a modified set of construction regulations and standards, seeking to lower down building costs by simplifying construction rules.
Keen construction industry analysis has helped experts to identify the trends of the UAE construction market. Two of their most significant findings are:
- Tourism architecture & construction in Dubai and other UAE cities will boost the construction market.
- Construction projects in the pipeline will significantly impact the market and result in the economic uplift of the nation.
After analysing the current reports, data, and sentiment, we came to realise that the market is bound to bounce back. Along with significant growth in the construction sector, we can also expect stability in the market in general. So, the forecast regarding the UAE construction market can be concluded as “about to upswing” in a bottom line.
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