UAE Transportation Infrastructure Construction Market Size (2024 - 2029)

The UAE transportation infrastructure construction market is poised for growth, driven by modernization and urban mobility demands. Despite challenges posed by COVID-19, the sector is recovering and focusing on development, supported by the country's advanced transport facilities that bolster economic and tourism growth. The government's strategic plans, including a comprehensive federal road development initiative and the Traffic and Transportation Plan 2030, aim to enhance connectivity and sustainability, further contributing to the market's expansion.

Market Size of UAE Transportation Infrastructure Construction Industry

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UAE Transportation Infrastructure Construction Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 5.00 %
Market Concentration Medium

Major Players

UAE Transportation Infrastructure Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

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UAE Transportation Infrastructure Construction Market Analysis

The UAE transportation infrastructure construction market is expected to register a CAGR of more than 5 % during the forecast period (2023 - 2028).

  • COVID-19 impacted the transportation infrastructure construction market. The impact is in direct and indirect ways, such as reduction in transit services, slowing down of construction works due to social distancing, and disrupted supply chain. However, the sector is recovering and focusing on developments.
  • The UAE boasts one of the most advanced transport and infrastructure facilities in the region. From roads to the metro to marine transport, it is home to world-class amenities that support the growth of the economy and the development of business and tourism in the country. Moreover, the transportation infrastructure facilitates the movement of public goods in the country.
  • Furthermore, an increase in urban mobility creates demand for the construction of more transportation projects. The transportation infrastructure is driven by modernization, which involves reforming railways and improving and rebuilding roads, bridges, airports, etc. This factor resulted in uninterrupted transit and freight services directly contributing to the region's economy.
  • UAE in September 2022, announced a 10-year future development plan for the federal road sector, valued at approximately AED 5 billion (USD 1.36 Billion). Announced by the Ministry of Energy and Infrastructure, the plan aims to meet the needs of the various regions of the UAE, keeping pace with the rapid growth witnessed by the country, enhancing the quality of life, and building infrastructure. Moreover, the 10-year plan will include the development of a network of arterial roads linking the regions of the country to each other.
  • Last year the Crown Prince of Ajman, Sheikh Ammar bin Humaid Al Nuaimi, announced an AED102 million (USD 27.77 million) package of infrastructure development projects in the northern emirate. The growth of this market will be driven by the government's effort to build a sustainable transport system. The Traffic and Transportation Plan 2030 is expected to accelerate new public-private partnership projects in the sector over the forecast period.

UAE Transportation Infrastructure Construction Industry Segmentation

Transportation Infrastructure refers to the framework that supports the transport system. It consists of fixed installations including roads, railways, airways, waterways, canals, and pipelines, and terminals such as airports, railway stations, bus stations, and trucking terminals. 

The UAE Transportation Infrastructure Construction report covers market insights, such as market dynamics, drivers, restraints, opportunities, technological innovation, its impact, porter's five forces analysis, and the impact of COVID-19 on the market. In addition, the report also provides company profiles to understand the competitive landscape of the market.

The UAE Transportation Infrastructure Construction Market is segmented by Transport Mode (Railways, Roadways, Airports, and Waterways). The report offers the market sizes and forecast for the UAE transportation infrastructure construction market in value (USD billion) for all the above segments. 

By Transport Mode
Railways
Roadways
Airports
Waterways
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UAE Transportation Infrastructure Construction Market Size Summary

The UAE transportation infrastructure construction market is poised for significant growth, driven by the country's advanced transport facilities and strategic government initiatives. The sector, which includes roads, metro systems, and marine transport, plays a crucial role in supporting the UAE's economic expansion and enhancing business and tourism activities. Despite the challenges posed by the COVID-19 pandemic, such as reduced transit services and supply chain disruptions, the market is on a recovery path, focusing on modernization and the development of new projects. The government's commitment to infrastructure development is evident in plans like the federal road sector development and the Traffic and Transportation Plan 2030, which aim to improve connectivity and support the growing urban population.

The market's expansion is further fueled by substantial investments in transportation infrastructure, including road and rail extensions, and innovative projects like the hyperloop between Dubai and Abu Dhabi. The Etihad Rail project, part of the larger UAE Railway Programme, exemplifies the country's ambition to enhance regional connectivity and integrate with the Gulf Cooperation Council's rail network. These initiatives are supported by major industry players who are adopting collaborative strategies to meet the increasing demand for infrastructure development. As the urban population continues to rise, the UAE's transportation infrastructure construction market is expected to experience robust growth, attracting further investment and driving economic development.

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UAE Transportation Infrastructure Construction Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Economic and Construction Market Scenario

    2. 1.2 Technological Innovations in the industry

    3. 1.3 Government Regulations and Initiatives on the Industry

    4. 1.4 Major Transportation Infrastructure Projects (Upcoming and On-going Projects)

    5. 1.5 Impact of the COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Transport Mode

      1. 2.1.1 Railways

      2. 2.1.2 Roadways

      3. 2.1.3 Airports

      4. 2.1.4 Waterways

UAE Transportation Infrastructure Construction Market Size FAQs

The UAE Transportation Infrastructure Construction Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

Al-Futtaim Group, ALEC Engineering & Contracting LLC, Consolidated Contractors Company, khansaheb and National Contracting and Transport CO are the major companies operating in the UAE Transportation Infrastructure Construction Market.

UAE Transportation Infrastructure Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)