Turner & Townsend, a well-known global company offering professional construction services, has released its highly anticipated 2024 UAE construction market intelligence report.
Source: freepik
The comprehensive report is based on insights gathered through a survey of construction professionals.[?] It highlights the urgent need for strategic initiatives to address critical challenges facing the industry in the region.
Main Aspects of the UAE Market Intelligence Report
The report covers important aspects of the construction market.
Embracing Innovation and Digital Transformation
The report highlights the need for industry players to take strategic measures, such as integrating advanced technologies and implementing sustainability practices across the supply chain. This proactive approach is crucial for addressing labor shortages and the dwindling pool of contractors, as well as for fostering growth and innovation within the sector.
Almost all the professionals surveyed said they have started using digital tools in their projects, showing a significant move towards using technology. Building Information Modeling (BIM) has become a standard practice, especially in projects that need precision and efficiency.
Commitment to Sustainability
Sustainability remains a key focus for industry leaders, with 75% of respondents stating that their companies have developed strategies to achieve Net Zero emissions. This commitment highlights a growing awareness of environmental responsibilities within the construction sector.
Recently we referred to the sustainability trend which is projected to generate savings of AED 10 billion by 2030 and reduce carbon emissions by 30%.
Recently we referred to the sustainability trend which is projected to generate savings of AED 10 billion by 2030 and reduce carbon emissions by 30%.
Procurement Strategies and Market Dynamics
Evolving procurement methods are also important. The report states that 44% of respondents have experience with single-stage procurement routes. This adaptive approach shows the industry's responsiveness to dynamic market conditions and a shift toward strategic procurement practices.
Resilience of the UAE Market
Despite ongoing challenges such as supply chain constraints, the construction market in the UAE demonstrates resilience and continues to attract investments. The report emphasizes the market's ability to navigate challenges and maintain growth momentum.
Future Outlook and Growth Prospects
The UAE construction market is expected to expand due to sustainability-focused and innovation-led projects. Public-private partnerships will be key in significant infrastructural developments and housing projects, aligning with the government's vision for economic diversification and sustainable urban development.
With the UAE positioned as a top emerging market with its economic plan to attract investors, there's optimism for increased market activity. Despite facing challenges like labor shortages, shrinking contractor pools, and ongoing supply chain constraints, the industry remains resilient and is on a trajectory of growth and innovation.
Adam Ralph
Country Manager in Turner & Townsend
