Dublin, May 05, 2026 (GLOBE NEWSWIRE) -- The "The UAE Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (Q1 2026)" has been added to ResearchAndMarkets.com's offering.
The UAE's construction industry is set to expand by 5% in real terms by 2026, driven by rising Foreign Direct Investment (FDI), increased construction loans, and growth in the oil sector. Recent data from the Federal Competitiveness and Statistics Centre of the UAE shows significant year-on-year (YoY) growth in construction value-added, with an 8.8% increase in Q2 2025 following 7% in Q1 2025 and 10.8% in Q4 2024. Contributing to this growth are favorable interest rates that remained unchanged at 3.65% in January 2026, as reported by the Central Bank of the United Arab Emirates (CBUAE).
According to CBUAE, total bank credit to the construction and real estate sectors reached AED273.1 billion ($74.4 billion) at the end of Q3 2025, up from AED264.8 billion ($72.1 billion) at the end of Q2 2025. Advancing investments further, the UAE government aims to increase annual FDI inflow to AED238.7 billion ($65 billion) by 2031. They plan to surpass 30% in FDI's share of total investments and achieve an 8% contribution to GDP by the same year.
Remarking on these positive trends, Emirates National Bank of Dubai (NBD) reported a 78% YoY growth in Greenfield FDI, hitting AED121.9 billion ($33.2 billion) across 1,491 projects in 2025, showing a 10.7% increase in project numbers compared to 2024. Going forward, the UAE government has targeted tripling the share of renewable energy in its energy mix by 2030, with planned investments of AED150-200 billion ($40.8-54.5 billion) to address rising energy demands.
Recent major projects include the Khazna Solar PV Project with a 1.5GW capacity in Abu Dhabi, and the AED2.6 billion ($700 million) UAE-Oman power link project. Meanwhile, the Abu Dhabi government's AED240 billion ($65.4 billion) investment plan, announced in December 2025, is set to stimulate growth in housing, transportation, healthcare, and education over the next seven to ten years. As a result, annual industry growth is expected to average 3.8% from 2027 to 2030.
The report offers a comprehensive analysis, including:
- Growth prospects by market, project type, and construction activity.
- Insights into industry trends, issues, and key risks and opportunities.
- Mega-project pipeline analysis focusing on development stages and participants, and listings of major pipeline projects.
Report Scope:
- Historical (2021-2025) and forecast (2026-2030) valuations, detailing key growth drivers.
- Sector segmentation (commercial, industrial, infrastructure, energy and utilities, institutional, residential) and sub-sector analysis.
- Mega-project pipeline breakdowns by development stage and projected project spending.
- Listings of major projects, leading contractors, and consultants.
Reasons to Buy:
- Identify and evaluate market opportunities using standardized valuation and forecasting methodologies.
- Assess market growth potential with over 600 time-series data forecasts.
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- Evaluate risks, including cost, regulatory, and competitive pressures.
- Assess competitive risks and success factors.
For more information about this report visit https://www.researchandmarkets.com/r/lj2u0r
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