There are many opportunities for U.S. exporters in the design and construction sectors in the UAE.
The UAE government focuses on investment in energy and infrastructure including transportation, utilities, decarbonization, renewable and nuclear energy generation, and resolving ongoing water scarcity. The significant commitment and resources of the government leads to many projects and opportunities for construction and engineering companies in the UAE. Recent major projects announced include the Abu Dhabi National Oil Company’s (ADNOC) Al-Nouf seawater treatment plant, Dubai Municipality’s plan to build a strategic sewerage tunnel, and other construction projects like the redevelopment of Mina Rashid in Dubai, and the Dubai International Financial Centre Expansion 2.0.
The UAE’s construction sector is expected to see a solid recovery in the next five years with construction industry value growing at up to 4.7% per year according to experts. Growth will be driven by the country’s development agenda focused on growing the country’s industrial, transportation, and energy infrastructure. As part of the “Projects of the 50” initiative, the UAE government announced plans to implement a series of projects aimed at accelerating the UAE’s economic development to transform the country into a comprehensive hub for all sectors. It aims to attract $149.8 billion in foreign direct investment (FDI) over the next nine years.
Utilities, Energy, and Water Projects
The utilities energy infrastructure sector is expected to expand over the next decade to boost electricity generation capacity to meet growing demand, increase the UAE’s water security, and to diversify the economy away from oil. Growth in energy and utilities infrastructure will be driven by the expansion of water and renewable energy capacity over the coming years, in line with pressing water scarcity of the UAE and the government’s low carbon energy agenda. In 2021, ADNOC announced the development of a large-scale seawater treatment and transmission pipeline project in the emirate of Abu Dhabi. This $2.5 billion project is part of Project Wave and aimed to replace the current aquifer water injection systems used to maintain reservoir pressure at onshore oil fields in Abu Dhabi.
Transportation and Road Infrastructure Projects
Transportation and road infrastructure development continues to be key to the UAE to meet the needs of the growing population and increasing number of cars. This is in line with the government’s plans to expand urbanism and tourism in Abu Dhabi and Dubai. The UAE has a sizable transportation and road infrastructure projects pipeline, including the $11 billion Etihad rail project, the $5.9 billion proposed hyperloop project between Dubai and Abu Dhabi, the $2.7 billion Sheikh Zayed double-deck road project, and more. The increasing demand for urban transport and government aims to bolster tourism and to broaden transportation infrastructure will also drive rail and road development across the country.
Real Estate Sector
The UAE’s real estate market witnessed a surge in prices post-COVID attributed to tourism and other economic activities, the positive impact of the Expo Dubai World’s Fair on the real estate and tourism sectors, and the return of international travel to normal levels. Prices in several sectors of Dubai’s property market have drastically increased over the last year, fueling interest in new construction. Mega developers in the main emirates of Dubai & Abu Dhabi have launched new construction projects last year, all of which reportedly sold out immediately. Prices of high-end homes in Dubai are expected to jump by 6% to 7.9% in the near term, one of the highest real estate price increases in the world.
A wave of private sector projects, combined with high levels of government spending and investment plans, is bringing renewed optimism to the market. Despite the fierce competition from local developers, U.S. companies are market leaders in the design and construction field in the UAE.
Local developers are increasingly seeking efficiency and digitally integrated processes in projects planning, staffing, monitoring, and delivery. American companies offering innovative digital technology solutions will find increased opportunities.
Recent trends indicate growing demand for technologies such as:
- Building Information Modeling (BIM).
- Augmented Reality (A/R).
- Advanced Construction Wearables & Exoskeletons.
- Internet of Things (IoT) data applications.
- Drones in construction fitted with radio frequency identification (RFID).
- 360° video capturing technologies.
- 3D printing and scanning technology including 3D construction.
Trade Shows and Exhibitions
Please contact us for additional information regarding trade shows, U.S. pavilions, and export promotion services that may be available for U.S. companies.
Date: December 4-7, 2023
Venue: Dubai, UAE