The UAE's construction sector is witnessing significant growth, driven by major airport expansions and hospitality projects. Despite a projected 2-5% rise in costs, demand continues to soar, according to project management firm Currie & Brown.

Meeting Tourism Demand

Record visitor numbers in 2023 have fueled large-scale infrastructure projects, especially in hotels and leisure sectors. The UAE aims to strengthen its position as a global tourism and technology hub, with developments ranging from data centers to AI research facilities.

Doug McGillivray, Regional Managing Director at Currie & Brown, highlighted, "It’s an exciting time as the UAE offers developers and investors huge opportunities with lower building costs than major global cities."

Cost and Supply Challenges

While opportunities abound, volatile steel prices, rising concrete costs, and supply chain bottlenecks pose challenges. Developers are urged to monitor unit rates and adopt flexible strategies to manage procurement and avoid delays.

The UAE's thriving economy, boosted by tourism and long-term visas, offers continued growth, but careful cost oversight will be key to ensuring project success.

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