The UAE construction industry remains resilient and is on a trajectory of growth and innovation despite facing several challenges, according to British project management consultancy Turner & Townsend.

The sector is facing challenges such as labour shortages, shrinking contractor pools, and ongoing supply chain constraints, said Adam Ralph, Country Manager – Dubai, UAE, Turner & Townsend.

In-country construction is rebounding strongly, with a promising pipeline of projects and public-private partnerships addressing affordable housing needs, Ralph added.

In its 2024 UAE market intelligence report, based on a survey of construction professionals, the company said strategic adaptation, sustainability and digital transformation will be vital for ensuring long-term success and resilience in the dynamic market.

Digital transformation will play a pivotal role in the industry’s advancement in the region, with 97% of survey respondents integrating digital tools into their projects, albeit some at a moderate level. 

This trend is set to persist with technologies such as building information modelling (BIM) becoming standard practice in projects requiring high precision and efficiency. 

Sustainability also remains a key focus, with 75% of industry professionals reporting that their companies have developed strategies to achieve net zero emissions. 

Additionally, nearly 44% of respondents prefer single-stage procurement routes, which indicates the industry’s responsiveness to market dynamics.

(Editing by Anoop Menon) (anoop.menon@lseg.com)

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