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$70bn infrastructure schemes underpin UAE economic expansion

8 October 2025

 

The UAE has embarked on a phase of concentrated infrastructure expansion, driven by the urgent need to support economic growth. Fuelled by national ambitions to broaden connectivity and a boom in real estate and tourism, the country will offer significant opportunities for infrastructure-led construction firms in the years ahead.

According to data from regional projects tracker MEED Projects, the UAE has invested heavily in public infrastructure over the past two years. A standout trend in last year’s projects market was investment in the transport sector, with contract awards nearly doubling to $12.3bn from $6.6bn in 2023.

Dubai and Abu Dhabi boast robust transport project pipelines exceeding $70bn in total. Of that, roughly $24bn-worth are in bidding stages – offering substantial short- to medium-term opportunities for contractors.

The most significant transport projects include the expansion of Al Maktoum International airport, the high-speed rail link connecting Dubai and Abu Dhabi, and Dubai Metro’s new Gold Line.

Abu Dhabi

Arguably the most strategically important initiative is the UAE high‑speed rail project linking Dubai and Abu Dhabi. Recent developments in which contractors have formed joint ventures to bid on design-and-build work packages mark a major shift from planning towards procurement and delivery. As tendering proceeds, major international rail firms and finance providers will be mobilised.

This project will demand complex systems integration, signalling, track works and station architecture – presenting a long run of opportunities for both global engineering, procurement and construction (EPC) firms and capable local contractors experienced in rail civil works and system installation.

Abu Dhabi has also signalled a recalibration aimed at accelerating infrastructure delivery in the capital. In April, investment entities ADQ, International Holding Company and Modon Holding formed Gridora to support private and public-private partnerships in delivering infrastructure across the emirate.

Gridora is intended to catalyse private sector participation in infrastructure. This aligns with broader government goals to diversify funding and leverage private sector expertise on large-scale projects.

In May, Abu Dhabi Projects & Infrastructure Centre (Adpic) signed a memorandum of understanding (MoU) with Gridora to co-deliver transport infrastructure projects in the UAE capital. The MoU establishes a working committee to explore opportunities and identify pilot schemes that Gridora might undertake. These include Adpic’s plans to deliver infrastructure projects in Abu Dhabi valued at over AED 35bn ($9.5bn). 

Other major upcoming transport projects in Abu Dhabi include Tram Line 4 and the second phase of the Mid Island Parkway Project (MIPP). Tram Line 4 will run through Yas Island and residential areas of Al-Raha, connecting them to Zayed International airport. The project was unveiled by Abu Dhabi Transport Company during GlobalRail 2025 in October.

The main construction tender for MIPP phase 2 is expected to be issued by the end of this year. This phase involves building approximately 11 kilometres of highways, including three- to five-lane roads connecting Um Yifeenah, Al-Jubail, Al-Sammaliyyah and Sas Al‑Nakhl islands to Khalifa City and the E10 highway.

Dubai

Last year, Dubai awarded about $7bn in contracts to improve transport infrastructure, including the AED 20.5bn ($5.5bn) main contract for the Dubai Metro Blue Line, signed in December.

The emirate has now turned its focus to enabling infrastructure that supports its long-term strategy to sustain tourism, trade and real estate expansion. The start of construction at Al-Maktoum International airport exemplifies this strategy.

Earlier this year, Dubai awarded multimillion-dollar contracts to the local Binladin Contracting Group and Tristar E&C for the new runway and enabling works on the main terminal, respectively.

Several billion dollars’ worth of contracts are expected imminently, as authorities evaluate bids for the concourse substructures and the automated people mover system at the airport.

On the urban transit front, the Dubai Metro Gold Line is expected to unlock new growth corridors and bolster the emirate’s real estate momentum. In June, the Roads & Transport Authority (RTA) received proposals from firms, with US-based Aecom emerging as the lowest bidder for the five stages of consultancy work on the project.

The Gold Line will start at Al-Ghubaiba in Bur Dubai. It will run parallel to – and alleviate pressure on – the existing Red Line, before heading inland to Business Bay, Meydan, Global Village and residential developments in Dubailand.

This year, Dubai has also invested heavily in its road network. Contract awards year-to-date have already reached $1.216 bn, surpassing the full-year total for 2024 ($774m) and nearly matching the entire 2023 figure.

If current trends hold, 2025 could exceed previous peaks of $1.621bn in 2017 and $1.644bn in 2008.

This acceleration stems not only from maintenance and refurbishment needs but also from ambitious new arterial projects, junction upgrades and mobility enhancements across the city – designed to ease congestion and connect new master-planned communities.

MEED's November 2025 special report on the UAE also includes:

> GOVERNMENT: Public spending ties the UAE closer together
> ECONOMY: UAE growth expansion beats expectations
> CONSTRUCTION: UAE construction faces delivery pressures
> DOWNSTREAM: Taziz fulfils Abu Dhabi’s chemical ambitions at pace

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Yasir Iqbal

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