Key findings
Resilience amid uncertainty
The UAE construction market remains resilient. Population growth, economic diversification and long-term government investment continue to underpin future demand. A strong existing project pipeline is also sustaining construction activity in the near term.
Regional uncertainty has not changed the direction of the market. But its impact is becoming clearer in how projects are delivered and risk is managed.
Contractors are more cautious about long-term fixed-price commitments. Price-validity periods are shorter, tenders carry more qualifications and fluctuation clauses are becoming more common. Clients are reviewing budgets and contingency more regularly and looking carefully at procurement, risk allocation and delivery programmes.
With construction activity remaining strong, managing cost and programme risk will be critical to maintaining certainty.
Economic growth continues to underpin a resilient construction market.
Strong activity, shifting risk
Construction activity remains resilient Government-backed programmes and a strong private-sector pipeline continue to sustain activity.
Regional uncertainty is changing commercial risk Contractors are shortening price validity, qualifying tenders and limiting long-term fixed-price risk.
Growth remains broad-based Data centres are a key growth area, alongside continued activity in aviation, infrastructure, industrial and logistics, and residential. Hospitality projects continue despite the current lower visitor numbers.
Programme risk is increasing Shortages in contractor capacity and specialist procurement are increasing the risk of delays. Clients are responding to wider market uncertainty by reviewing budgets, procurement and how risk is shared.
GDP 1
+3%
in 2026 Q1
Non-oil GDP growth 1
+4.8%
in 2026 Q1
Inflation 2
+2.3%
predicted in 2026