UAE Construction Output Set to Hit $130.8 Billion by 2029, Knight Frank Says

The UAE’s construction sector is on track for significant growth, with output projected to rise 22 percent over the next five years to $130.8 billion, according to a new report by global consultancy Knight Frank. The analysis estimates that the industry will be worth $107.2 billion in 2024, expanding at an average rate of about 4 percent annually through 2029.

The growth reflects a wider regional trend, as Gulf Cooperation Council countries accelerate diversification efforts to reduce reliance on oil revenues. Neighboring Saudi Arabia’s construction output is forecast to reach $191 billion by 2029, a 29 percent increase from 2024, fueled by giga-projects, housing demand and large-scale office developments.

Faisal Durrani, partner and head of research for Knight Frank in the Middle East and North Africa, said the UAE is undergoing a “period of robust growth and transformation” driven by tourism, economic diversification and investments in housing, transport and smart city projects.

The report notes that construction dominates the UAE’s future project pipeline, accounting for 62 percent of planned activity, far outpacing transport (12 percent), power (7 percent) and water (5 percent). Within the construction sector, mixed-use developments represent 42 percent of the pipeline, followed by residential real estate (28 percent), data centers (9 percent) and hospitality projects (4 percent).

The sector underpins key federal and emirate-level strategies, including “We the UAE 2031,” Dubai’s D33 agenda, the 2040 Urban Master Plan and Abu Dhabi’s Vision 2030. Between 2020 and August 2025, Abu Dhabi and Dubai captured 85 percent of the UAE’s total contract value, awarding $151 billion and $129.9 billion respectively.

Dubai remains the epicenter of activity, with 75 percent of contract awards concentrated in construction and only 3 percent linked to oil and gas, highlighting the emirate’s diversification drive. Upcoming projects include Palm Jebel Ali, The Oasis by Emaar, Marsa Al Arab, Naia Island, and expansions at Dubai Hills Estate, alongside a 15-km Blue Line metro extension due in 2029.

Moataz Mosallam, partner for Project & Development Services at Knight Frank, said Dubai’s population is expected to reach 5.8 million by 2040, up from 3.4 million in 2020, driving housing demand. About 8.2 million sq. feet of office space is scheduled for delivery by 2028, but demand is expected to exceed supply, ensuring continued momentum.

In Abu Dhabi, construction accounted for 23 percent of contract awards, trailing oil and gas at 40 percent. Major projects include a 150-km high-speed rail link to Dubai, slated for completion by 2030, and a 131-km metro system to support urban growth. The emirate delivered 890 residential units in the first half of 2025, with another 33,000 units under construction for delivery by 2029, 71 percent of which will be apartments. Office supply is also expanding, with nearly 175,000 sq. meters due in 2027.