• Sentiment extremely positive and among highest in the world
  • Key metrics are high across construction sectors
  • Fluctuating oil prices causing investor uncertainty
  • Skilled professionals in high-demand with shortages impacting workloads

The Royal Institution of Chartered Surveyors (RICS) Global Construction Monitor Q3 2024 found that the United Arab Emirate’s construction sector remains among the strongest performing worldwide.

The Construction Sentiment Index (CSI) recorded a score of +55% (net balance), clearly indicating another quarter of growing positivity towards the sector, and its strongest result since the monitor began assessing the UAE in Q3 2018. Out of the many nations assessed by the Monitor, only Saudi Arabia is comparable with the UAE, and this sentiment figure is far ahead of the Middle East & Africa (MEA) region’s net balance sentiment of +28%.

Respondents note that geopolitical tensions, causing fluctuating oil prices, are undermining confidence among investors. This is leading to some delays and project cancellations, particularly among those reliant on government or oil-related funding. For the most part, however, the UAE’s construction sector continues to demonstrate resilience in the face of these uncertainties.

High levels of demand for professionals continue to impact the market, with Quantity Surveyors identified as the most sought-after profession, followed closely by skilled tradespeople and site managers. Even unskilled labour continues to face key shortages in several areas. Respondents note that rising project demands are creating shortened pre-contract and procurement stages, leading to rushed agreements which are in turn causing uncertainty between contracted partners and unfavourable conditions further down the line.

Looking at the future, long-term confidence matches the very positive sentiment in the present, and there are no real signs of the UAE’s construction sector slowing down. While skills shortages continue, these are the effects of an extremely active sector which continues to display strength in depth in the face of existing and emerging challenges.

RICS Senior Public Affairs Officer, Abdullah Akaish, said: “The UAE’s construction sector is experiencing one of its most robust periods in recent history, with sentiment among the highest globally. Strong performance across residential, commercial, and infrastructure projects underscores the industry’s resilience and growth, even as fluctuating oil prices introduce some investor caution. To sustain this momentum, we recommend addressing critical shortages of skilled professionals—especially Quantity Surveyors, skilled tradespeople, and site managers. Streamlining the recruitment process for foreign talent could help companies mitigate delays and meet heightened demand without compromising quality. Furthermore, rising demand is compressing pre-contract and procurement phases, which can lead to rushed agreements and strained contractual relationships.

“RICS advocates for greater collaboration between developers, contractors, and consultants to manage timelines effectively, reducing risks associated with hurried contracts. Investments in local workforce training, coupled with flexible procurement strategies, would reinforce the sector’s foundation and ensure that the UAE remains a leading destination for construction talent and investment, even amid complex market dynamics.”

A full version of the Global Monitor may be found at this link. Commentary from survey respondents regionally can be found in the economic pdf on the back pages – you are free to use these.

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For more information:
Kris Hicks
Khicks@rics.org
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