Mega and giga projects drive strong growth across UAE, KSA and Qatar

The United Arab Emirates (UAE) construction market maintained strong momentum, driven by mega projects (Dubai Metro Blue Line, Etihad Rail, Al Maktoum International Airport) and resilient non-oil GDP growth (about 4.8%).

The UAE showed diversified growth across urban and logistics sectors and led the region in private real estate and tech-driven assets, with prime office occupancy above 90% and accelerating demand for data centres.

The Kingdom of Saudi Arabia (KSA) dominated in scale and complexity, with its pipeline spanning tourism, leisure and residential mega-communities, alongside digital infrastructure. Its market has been transformed under Vision 2030, with giga projects (Qiddiya, Diriyah, ROSHN, and Red Sea) that continued to progress at a steady pace.

Qatar remained energy-centric with new investment in LNG expansion (North Field) that reinforced its industrial base. Post-World Cup, its focus has been the implementation of the Qatar National Vision 2030, led by Ashghal’s (Qatar’s Public Works Authority) US$22.2bn development programme of investment in urban infrastructure, tourism-led projects and transportation.

Tender price inflation persists

Tender price inflation in the UAE rebounded to around 3.3% in 2025, stabilising after prior volatility, particularly around imported metals. The KSA market experienced persistent inflationary pressure, around 5.4%, driven by a high demand for construction projects, shortages of labour and specialist trades, and an increase in material and commodity prices. Qatar remained competitive but faced moderate increases of 3% to 4% on complex civils and marine works.

Within the UAE, Abu Dhabi was the most competitive market for tenders, while Dubai led in prime residential and off-plan sales. The KSA market was marked by the completion of major developments such as the Six Flags Qiddiya City theme park. Qatar’s Ras Laffan project concentrated on heavy industry civils works, while Lusail City drove transit-oriented development.

Investor confidence stays high

Investor confidence remained at a high level across all three markets: UAE benefitted from record foreign direct investment and industrial diversification; KSA leveraged Expo 2030 and FIFA 2034 milestones; and Qatar sustained AA-rated stability via LNG revenues.

In the region, generally, productivity gains hinged on modular methods of construction, building information modelling (BIM), and collaborative contracting to increase capacity and efficiency within the industry.

The UAE offered the most balanced risk-return profile with its diversified sectors. KSA offered significant scale and opportunities, supported by strong risk management practices. Qatar’s outlook was also positive, anchored by energy along with growing urbanisation and increased tourism.

“In the region, generally, productivity gains hinged on modular methods of construction, building information modelling (BIM), and collaborative contracting to increase capacity and efficiency within the industry.”