The UAE construction sector is reporting positive growth, but at lower rates than recent quarters.
The latest RICS Global Construction Monitor reveals that construction activity in the UAE remains positive overall, reporting a +23 per cent result for the headline Construction Activity Index (CAI).
However, this is notably down from the +53 per cent recorded in the prior quarter, and the weakest result since Q2 2022.
UAE construction growth
In terms of the construction subsectors, private residential lowered notably from a very positive +63 per cent reading in the previous quarter to -4 per cent this time around.
All subsectors softened, while infrastructure proved most resilient, reporting a +48 per cent result, which is down from +72 per cent in the third quarter of 2023.
Respondents highlight that increased competition in the construction sector within the region, notably from Saudi Arabia, is influencing costs for accessing building materials and skilled labour to increase.
Skills followed by general labour shortages are listed as the most influential factors for project delays (+69 per cent and +68, respectively).
All types of labourers, including unskilled labourers, are in high demand, however skilled tradespeople are considered the scarcest (+73 per cent), followed by construction managers (+59 per cent).
Looking to the future, the UAE’s construction sector has proven somewhat resilient in the face of several regional and global headwinds affecting confidence, with infrastructure projects proving most resilient.
Twelve-months expectations have also remained fairly resilient across the board, painting a picture of careful optimism going forward.
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