The UAE’s construction sector is now valued at $36.3 bn in the first quarter of 2023. The industry grew by 9.1 percent compared to last year. The data was revealed by the Federal Center for Competitiveness and Statistics.
Meanwhile, the real estate sector recorded a 3.1 percent growth compared to the same period in 2022.
Recently, the government announced another major milestone, with the UAE’s GDP growing to AED418.3 bn ($113.9 bn) in the same focus period. Its performance was up 3.8 percent or AED15 bn more compared to last year, the data said.
UAE construction sector among top contributors
Most sectors and economic activities that serve as pillars of the national economy made significant contributions to the UAE’s performance. These include the construction and real estate industries.
Meanwhile, the transport and storage sector contributed AED21.79 bn to the UAE’s GDP. This was equivalent to a 10.9 percent growth compared to the same period in 2022.
Other top performing sectors include the accommodation and food services industry. It grew by 7.8 percent, while the finance and insurance sector achieved a 7.7 percent growth. Moreover, the wholesale and retail industry achieved 5.4 percent growth, with a market value exceeding AED102.3 bn.
Overall, the UAE’s non-oil GDP amounted to AED312 bn, indicating an increase of more than AED13.5 billion or a 4.5 per cent growth.
Read: Confidence high for construction market in UAE, Saudi Arabia
Bright outlook for UAE construction industry
Experts estimate that the UAE construction market will reach $38.99 bn in 2023. Moreover, it is expected to be worth $49.40 bn by 2028, growing at a compound annual growth rate (CAGR) of 4.85 percent from 2023 to 2028.
This project pipeline includes luxury residential communities and smart cities. Moreover, liberal trade policies in the UAE are attracting foreign investors and boosting the UAE construction market.
The construction sector is the essence of the UAE economy, and the industry is expecting rapid growth in the coming years. The construction industry plays an important role in the economic upliftment and development of the country.
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