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construction market forecast

UAE Construction Market Forecast to Reach $167.27bn by 2031, Report Says

Mordor Intelligence forecasts the UAE construction market will reach US$167.27 billion by 2031, with residential construction leading its 2025 breakdown and infrastructure posting the fastest stated sector growth forecast.

By Bettesworth Construction Team 2 min read
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The UAE construction market is forecast to reach US$167.27 billion by 2031, according to Mordor Intelligence. TradeArabia reported the figure on 5 October 2026 as US$167.2 billion, a rounded version of the report’s estimate. This is a private research forecast, not an official government market statistic or a guaranteed outcome.

What is the forecast, and how was the headline figure rounded?

Mordor Intelligence estimates the market at US$120.82 billion in 2025 and US$127.13 billion in 2026, then forecasts US$167.27 billion in 2031. The report gives a compound annual growth rate (CAGR) of 5.64% for 2026–2031. TradeArabia’s 5 October 2026 headline rounds the 2031 estimate to US$167.2 billion, or AED614.4 billion. Mordor Intelligence’s UAE construction market page provides the report figures; TradeArabia reports the rounded amount.

What does the market estimate include?

Mordor Intelligence’s scope covers construction activity in residential, commercial, industrial, infrastructure, energy and utilities, including underground structures and superstructures. Its market-size estimates and forecasts use a proprietary estimation framework and data and insights available as of January 2026. The report page was last updated on 10 June 2026. The total therefore reflects that publisher’s defined scope and method; it should not be treated as an official national-accounts measure or as a count of completed projects alone.

Which segments and emirates stand out?

Residential is the largest reported segment

Residential building represented 43.8% of the UAE construction market in Mordor Intelligence’s 2025 breakdown, making it the largest reported segment by share.

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Infrastructure has the fastest stated sector growth rate

The report forecasts infrastructure growth at a 5.23% CAGR for 2026–2031. This is a sector-specific forecast, not the growth rate for the whole market.

Dubai held the largest reported emirate share

Dubai accounted for 47.2% of the market in the 2025 figures cited by TradeArabia from Mordor Intelligence. That is a reported share for the base-year breakdown, not a forecast that Dubai will hold the same share through 2031.

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How should the forecast be interpreted?

The US$167.27 billion figure is a forecast produced under Mordor Intelligence’s market definition and proprietary methodology. It is not an independently verified future value. Actual outcomes may differ, and the figure should not be read as a promise of project awards, construction output, or revenue for any one company.

Other forecasts are comparable only when their scope, base year, forecast horizon, nominal or real basis, geographic coverage and estimation method align. A separate GlobalData outlook surfaced with a forecast horizon through 2030, rather than Mordor Intelligence’s 2031 horizon, and does not provide a harmonized market-value series for direct numerical comparison. Its figures should not be blended with Mordor’s as if they measured the same thing. GlobalData’s UAE construction market listing describes that separate outlook.

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