There are currently $222 billion worth of projects underway in the UAE, with a potential further $659 billion in the pipeline ($336 in budgeted projects and $323 billion in planning phases). Current and future spending is heavily concentrated in Abu Dhabi and Dubai. These two emirates account for 87 per cent of all projects currently in execution (Abu Dhabi has a 49 per cent share valued at $109 billion and Dubai has a 38 per cent share worth $83 billion).
There are, however, significant differences in the profile of which sectors these projects are taking place in, with projects in Dubai heavily skewed to construction activity. Projects currently in execution in Abu Dhabi are far more distributed across sectors, with the largest shares in gas, construction, and oil.
Some of the largest projects currently in execution include the ADNOC Hail and Ghasha Sour Gas development ($16 billion), the construction of a solar power project by Emirates Water & Electricity Company and Masdar ($6 billion) and the blue line expansion of the Dubai metro ($5.8 billion). These two emirates account for 90 per cent of all projects in the pipeline.
“Here too we see a distinction between the two emirates in terms of how potential future projects are distributed across sectors. Once again, future projects in Dubai are largely in the construction sector, while in Abu Dhabi the pipeline is distributed more evenly across sectors,” Jeanne Walters, senior economist, Emirates NBD, wrote in a note.
Consistent with this split across sectors, projects in Dubai (concentrated in construction) tend to be driven by the private sector. In Dubai 74 per cent of projects currently in execution and 65 per cent of pipeline projects are attributable to the private sector. In contrast, Abu Dhabi project spending skews more heavily towards the public sector, with only 23 per cent of projects currently in execution and 27 per cent of pipeline projects falling under the private sector. In the UAE in aggregate, however, spending between the private and public sector is fairly evenly spread.
Across the GCC, the value of contracts awarded rose nearly nine per cent in 2024 to a value of $271 billion, expanding on the rapid growth of more than 99 per cent y/y recorded in 2023.“Project spending across the region is expected to support growth in 2025, and beyond, as countries build on recent progress made in working towards their ambitious development, diversification and net-zero targets,” Walters wrote.
In addition to the contracts awarded in 2024, there is still a sizeable number of projects for which contracts were awarded in earlier years but where construction activity is ongoing.“At the time of writing there is around $790 billion worth of projects currently in execution across the GCC. Of these projects, the majority (53 per cent) are in Saudi Arabia, with a further 28 per cent taking place in the UAE. Almost 77 per cent of this spending is being driven by governments, with 23 per cent attributable to the private sector,” Walters wrote.
Pipeline of projects is large
In addition to projects currently in execution, there is also a significant pipeline of projects across the region, including projects that have been allocated a budget as part of a master plan but have yet to be meaningfully defined in any other way, as well as projects that are currently in a defined planning phase. Projects that have been budgeted as part of a master plan amount to $1.25 trillion, while those that are still in planning include another $1.5 trillion worth of projects. Again, Saudi Arabia and the UAE have the largest potential project spending pipelines. Across all stages (execution, planning and budgeted) the construction sector dominates, with over $244 billion worth of projects currently in execution, and a further $1.43 trillion in the pipeline. The transport and power sectors are the next largest in terms of the cumulative spending on current and future projects, data showed.
Saudi Arabia had a record year in 2024 with the value of contracts awarded in the kingdom growing 23 per cent year on year to reach a value of $146 billion.“With a significant number of projects, awarded in earlier years, still being executed there is over $421 billion worth of projects currently being completed in the kingdom,” Walters wrote.