• Construction activity remains firmly positive, while new business enquiries gives strongest reading in five years
  • Future outlook positive for the foreseeable future
  • Demand and costs for labour, skills and materials in the region increasing with competition from Saudi Arabia’s giga projects

The latest RICS Global Construction Monitor reveals that construction activity in the United Arab Emirates’ (UAE) remains strong and firm. The UAE’s construction industry is among the global leaders for new business enquiries, which came in with a +54% reading this quarter – its strongest number since the UAE survey began five years ago.  

The headline Construction Activity Index (CAI) posted a firmly positive +45% reading, while the private residential sector reported the strongest sentiment at +56%m with all other sectors deep within positive territory.

While the UAE remains among the top global performers in its construction industry, further growth is stifled by shortages of labour, skills, and rising materials costs. Like other markets, skilled trades are in a particular shortage of supply, as well as other roles with high requirements for skills and experience, such as Quantity Surveyors and Managers. Many anecdotal responses identify Saudi Arabia’s giga projects as a competitor for skills and building materials in the region, driving up prices for these essential resources.

While rising costs and labour shortages remain a challenge for the UAE’s construction sector, it continues to demonstrate resilience through consistently growing construction activity and new business enquiries. On current conditions, the UAE should remain one of the leading lights of the global construction sector.

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