Construction in the UAE – Key Trends and Opportunities to 2019

Date: 2016-01

“• The UAE’s infrastructure construction market will be supported by large-scale investment in the construction industry, due to Dubai hosting the World Expo 2020, which will require transport infrastructure, hotels, retail and residential buildings, and other related facilities. In order to host the event successfully, the UAE government will prioritize infrastructure development as a key investment area, to enable the country to handle the expected visitor volumes. Consequently, the government is investing in modernizing public transport systems and airport construction. To prepare for the event, AED157.9 billion (US$43.0 billion) is required to be spent on roads, highways, rail, airport and other related infrastructure, according to the Deutsche Bank.

• With robust and modern transport infrastructure vital to economic growth and competitiveness, the UAE government is focusing on transport development. In 2014, the UAE’s National Transport Authority (NTA) announced plans to spend AED91.8 billion (US$25.0 billion) on rail infrastructure by 2020.

• Government focus on the country’s development as a tourist destination ahead of the World Expo 2020 is expected to drive growth in the UAE construction industry over the forecast period. The event is expected to attract 25 million visitors, creating opportunities for businesses.

• Under the Dubai Health Strategy 2013–2025, the government is planning to construct three major hospitals – the Al Maktoum Hospital, Al Khawaneej Hospital and Mohammed bin Rashid Hospital – and 40 new healthcare centers by 2025. The government is also expected to construct three new medical colleges and five nursing schools by 2025.

• The UAE construction industry’s growth will be driven by the government’s plan to increase the share of renewable energy in terms of total energy consumption, encouraging investment in renewable energy infrastructure. The government aims to generate 7% of the country’s total electricity needs through renewable sources by 2020.”

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