The Middle East and North Africa (MENA) construction sector shows impressive potential, with the UAE leading the way. Despite global economic uncertainties, the UAE boasts a massive project pipeline valued at $590 billion, of which residential and mixed-use developments take a significant share.
Dubai, the powerhouse of the UAE’s real estate market, is experiencing a surge in property sales and rentals. This growth is fueled by ongoing project completions, with thousands of new residential units expected this year. Abu Dhabi, the capital, is also witnessing steady growth, albeit at a more moderate pace.
The hospitality sector is booming as well, with Dubai adding thousands of new hotel rooms, particularly in the luxury category. This trend extends to Abu Dhabi, which is also expanding its hotel room capacity.
Looking ahead, JLL maintains a positive outlook for the UAE construction market. The country nearly tripled the value of awarded projects in 2023, highlighting its commitment to economic diversification. While rising costs pose a challenge, strong project uptake is expected to sustain growth throughout 2024.
