Dubai construction prepares for shift in 2024
10 November 2023
Register for MEED's guest programme
Dubai’s construction market is preparing to make a pivotal shift next year as the emirate’s focus switches from real estate to public infrastructure projects such as Dubai Metro’s Blue Line, which is expected to be tendered and move into construction next year.
The Dubai government budget statement for 2024, released on 6 November, highlighted the anticipated shift.
In the statement, Abdulrahman Saleh al-Saleh, director general of the Department of Finance (DoF) for the Government of Dubai, said: “Despite the completion of many strategic projects, the activation of the public-private partnership law, and the development of project financing through long-term financing means the government has allocated 8 per cent of total expenditures to construction projects.
“This sends a strong signal to the private sector about Dubai’s determination to continue developing its infrastructure and delivering more strategic development projects.”
Overall spending for Dubai government entities in 2024 has been set at AED79.1bn ($21.6bn), which means AED6.328bn will be spent on construction. This is a 34 per cent increase on the spending planned for 2023, when 7 per cent of AED67.5bn was allocated to construction.
While there has been a significant increase in construction spending planned for 2024, the total still falls short of the budgeted spending set before the pandemic. In 2020, there was AED7.698bn of spending planned; in 2019, there was AED9.2bn.
Over the past two years, the Dubai government and its government-related entities (GREs), including property developers Emaar Properties and Nakheel, have focused on the real estate sector and, more specifically, residential projects funded by off-plan sales.
According to regional projects tracker MEED Projects, the Dubai government and its GREs have awarded $9.8bn of construction and transport contracts since the start of 2021, with $6.8bn or 69 per cent of those for the construction of buildings sold off-plan.
The resurgent property market with booming off-plan sales has enabled Dubai’s construction sector to have its best year in 2023 since 2017. It is on course to nearly double the total value of contract awards recorded in 2022.
The strength of the off-plan market was best demonstrated in late September, when hundreds of home buyers queued overnight to buy villas on Palm Jebel Ali, which had been on hold since 2009.
The strong market demand meant that by early November, there had been $17.8bn of construction and transport awards in the emirate. This put it on course to surpass the $18.1bn of awards in 2018, although still lower than 2017's $23.5bn of awards in the midst of an infrastructure spending spree ahead of Expo 2020.
Market correction
The prospect of more government infrastructure spending in 2024 comes as questions arise over whether Dubai’s real estate boom can be sustained.
While real estate prices keep going up, data has been released in the fourth quarter of this year that suggests growth may be slowing.
CBRE’s latest report says that in October 2023, the number of transactions in Dubai’s residential market totalled 6,407, a drop of 23.6 per cent compared to the previous year.
Most importantly for the construction sector, which relies on building new projects, the report also said that off-plan sales fell by 57.2 per cent over the same period. Secondary market transactions grew by 29.5 per cent.
Previous cycles have shown that a correction can either be fast or slow. In 2008, induced by the global financial crisis, there was a sudden price collapse. In 2016, following the late 2014 drop in oil prices, there was a steady decline in prices that lasted several years.
Although concerns may remain over the property market, residential real estate still accounts for over half of the construction and transport projects planned in Dubai.
According to regional projects tracker MEED Projects, there are $74bn of projects at the pre-execution phase, which includes study, design, main contract bid and main contract prequalification. Of that $74bn total, 57 per cent are residential projects, while another 24 per cent are mixed-use real estate projects, typically including a significant amount of residential real estate.
The mix is unlikely to change unless the project pipeline changes and other major infrastructure projects are launched.
Of the pre-execution construction and transport projects that are not residential or mixed-use, only Dubai Metro’s Blue Line project is valued at over $500m, with an estimated cost of $2.5bn.
MEED’s November 2023 special report on the UAE includes:
> COMMENT: UAE eyes global leadership role
> POLITICS: Abu Dhabi networks on the global stage
> ECONOMY: UAE economy maintains robust growth
> BANKING: UAE banks enjoy the good times
> UPSTREAM: Hail and Ghasha galvanises UAE upstream market
> DOWNSTREAM: Adnoc spurs downstream gas expansions
> POWER: UAE closes ranks ahead of Cop28
> WATER: UAE ramps up decarbonisation of water sector
> PROJECTS: Top 10 UAE clean energy projects
> CONSTRUCTION: UAE construction sector returns to form
> TRANSPORT: UAE aviation returns to growth
Register for MEED's guest program now to access this article.
Exclusive from Meed
-
Events put Saudi Arabia on the world stage29 July 2026
-
Read the August 2026 MEED Business Review29 July 2026
-
Bahrain tenders Tashan sewer scheme29 July 2026
-
Chinese firm signs $3.3bn Kuwait wastewater deal29 July 2026
-
Abu Dhabi tenders urban development consultancy deal29 July 2026
All of this is only 1% of what MEED.com has to offer
Subscribe now and unlock all the 153,671 articles on MEED.com
- All the latest news, data, and market intelligence across MENA at your fingerprints
- First-hand updates and inside information on projects, clients and competitors that matter to you
- 20 years' archive of information, data, and news for you to access at your convenience
- Strategize to succeed and minimise risks with timely analysis of current and future market trends
Related Articles
-
Events put Saudi Arabia on the world stage
29 July 2026
Commentary
Colin Foreman
EditorThe Expo 2030 and the 2034 World Cup will not transform Saudi Arabia’s economy on their own, but the momentum they generate and the international profile they bring underline their importance.
Over the past decade, Saudi Arabia has taken great strides in changing the international perception of the kingdom. Futuristic projects and investment in football and other sports, combined with social reforms such as opening cinemas and allowing women to drive, have helped foster a new image for the country.
This year, those efforts have been dented as the rest of the world once again sees a region blighted by conflict. Saudi Arabia will need to correct the course of public perception once the conflict draws to a close, and Expo 2030 Riyadh and the 2034 Fifa World Cup are well timed to help the kingdom maintain its modernisation drive.
Both are truly global events that will attract millions of visitors. More than 40 million visits are anticipated at the Expo, and the World Cup final in Qatar in 2022 was watched by some 1.5 billion people.
Both are truly global events that will attract millions of visitors
Locally, the impact has already begun. Flying into Riyadh’s King Khalid International airport from the south, one can clearly see earthworks and infrastructure progressing at the Expo site. To the east of the city, construction work on King Fahd Sports City Stadium is well advanced.
Expo Riyadh 2030 Company expects the construction phase and legacy development to contribute around $64bn to Saudi GDP and generate some 171,000 jobs. Fifteen stadiums are planned across five cities.
Construction activity is ramping up. Tendering is starting for the first buildings at the Expo site, including the KSA Pavilion. Meanwhile, work is beginning on more stadiums and other related infrastructure projects that will support the World Cup.
In the build-up to Expo 2030 and World Cup 2034, construction will be the main event.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17794600/main.gif -
Read the August 2026 MEED Business Review
29 July 2026
Download / Subscribe / 14-day trial access Saudi Arabia’s biggest event and infrastructure programmes are moving into a new phase of delivery.
Construction activity at the Expo 2030 Riyadh site is accelerating, with some of the largest packages set to be awarded before the end of this year. Infrastructure works are gathering pace and preparations are intensifying for an event that is expected to reshape the capital long after its six-month run comes to an end.At the same time, the lessons emerging from this summer’s expanded Fifa World Cup provide an early guide to the opportunities – and challenges – Saudi Arabia will face as it prepares to host football’s biggest tournament in 2034.
August’s Market Focus turns to the Maghreb, where four economies are following increasingly divergent paths. While Morocco is benefiting from World Cup-driven investment and a booming tourism sector, Algeria is deploying record public spending, Tunisia is pressing ahead with strategic power investments despite fiscal constraints, and Libya is seeing sustained interest from oil and gas investors undeterred by ongoing political disputes. The report examines what is driving this divergence and where the region’s strongest opportunities now lie.
This edition also includes MEED’s annual ranking of the Top 50 GCC banks, exploring how regional lenders have demonstrated remarkable resilience through recent geopolitical turbulence, supported by strong funding, capital buffers and government backing.
In the latest issue, we speak to renewable energy consultancy SgurrEnergy about why developers are increasingly moving beyond standalone solar towards hybrid renewable energy projects that combine battery storage and other technologies to deliver round-the-clock power.
We also examine how geopolitical tensions, shifting trade routes and supply chain disruption are driving a new wave of global investment in port infrastructure, and consider what Saudi Arabia must do to unlock greater pools of private capital as sovereign funding gives way to a more institutionally financed infrastructure model.
Finally, we congratulate the winners of the Mena Banking Excellence Awards 2026, recognising the retail, digital and SME institutions that are setting new benchmarks for innovation, customer experience and business banking across the region.
We hope our valued subscribers enjoy the August 2026 issue of MEED Business Review.
Must-read sections in the August 2026 issue of MEED Business Review include:
> AGENDA: Expo 2030 Riyadh construction gathers pace
> FOOTBALL: What the 2026 World Cup means for Saudi Arabia 2034INDUSTRY REPORT:
Top 50 Gulf banks
> GCC banks prove resilient amid turmoil> AWARDS: Mena Banking Excellence Awards reveals retail, digital and SME winners
> LEADERSHIP: Private capital and the GCC infrastructure inflection
> PORTS: Geopolitical risk shapes $513bn of global ports projects
> INTERVIEW: Developers look beyond standalone solar
> MAGHREB MARKET FOCUS:
> COMMENT: Maghreb fortunes diverge
> GOV'T & ECONOMY: Elections fail to change the Maghreb's political realities
> PAYMENTS: Morocco’s payments shift remains cash-led
> OIL & GAS: Morocco strives to work out feasible energy strategy
> OIL & GAS: Libya’s oil and gas project market has grown by 48%
> OIL & GAS: Value of Algerian extractive projects more than doubles
> POWER & WATER: Tunisia drives Maghreb power investment with $1.4bn electricity link
> CONSTRUCTION: Morocco is bright spot in Maghreb construction
> CONSTRUCTION: Algeria’s record budget sets stage for construction comeback
> TOURISM: Morocco tourism hits record highs
> TOURISM: Tunisia's tourism sector eyes record growth> MEED COMMENTS:
> I Squared deal is latest sign of PIF's new playbook
> Projects market holds its nerve
> Saudi water sector awaits next catalyst
> Gulf IWPPs risk becoming a two-horse race> GULF PROJECTS INDEX: Gulf index maintains growth run
> JUNE 2026 CONTRACTS: Middle East contract awards
> ECONOMIC DATA: Data drives regional projects
> OPINION: The moving finger of time
> BUSINESS OUTLOOK: Finance, oil and gas, construction, power and water contracts
To see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17726746/main.gif -
Bahrain tenders Tashan sewer scheme
29 July 2026
Bahrain’s Ministry of Works (MoW) has issued a tender for the construction of a sewer network in Tashan, on the outskirts of Manama.
Contractors have until 20 September to submit bids.
The scheme covers blocks 405, 419 and 421, administrative areas covering Tashan and surrounding communities. It will expand the local wastewater collection network and provide connections for existing and planned properties.
The scope includes about 2 kilometres of 150mm-diameter lateral sewers and 4.8km of main sewer lines ranging from 200mm to 400mm in diameter.
The contract also covers house connections and future connections for planned properties.
A pressure station with a capacity of 75 litres a second will be built as part of the scheme. It will be supported by about 834 metres of 250mm-diameter rising main and a discharge chamber.
Other works include the construction of manholes and associated infrastructure, as well as the decommissioning of an existing lift station.
The project is part of Bahrain’s wider programme to develop and expand its sewerage networks and treatment infrastructure.
In June, MoW issued a tender for another sewer network project in A’ali, southwest of Manama, covering Block 730 and part of Block 740.
The scheme will connect 232 plots to the public sewer network. It includes 5.2km of sewer mains with diameters ranging from 200mm to 300mm and about 3.4km of 150mm-diameter lateral sewer lines.
The scope also includes house connections, new manholes and connections to the existing sewer network.
The bid submission deadline for the A’ali project is 5 August.
https://image.digitalinsightresearch.in/uploads/NewsArticle/17800238/main.jpg -
Chinese firm signs $3.3bn Kuwait wastewater deal
29 July 2026
Register for MEED’s 14-day trial access
China State Construction Engineering Corporation (CSCEC) has confirmed it has signed a contract to build Kuwait’s largest wastewater treatment plant.
The North Kabd wastewater treatment plant and related works contract was signed on 26 July between senior officials from CSCEC and Kuwait’s Ministry of Public Works (MPW).
The plant has a planned capacity of up to 1 million cubic metres a day (cm/d).
In January, MEED reported that the Chinese firm had been appointed as the main contractor for the project pending the contract’s official signing.
According to official government records at the time, the Central Agency for Public Tenders (Capt) had authorised MPW to proceed with a direct contract valued at KD999.85m ($3.3bn).
The contract covers the design, construction, operation and maintenance of the facility over a 10-year period.
Earlier, in September 2025, MEED reported that a Chinese firm was expected to sign the contract as part of a series of Kuwait-China agreements covering infrastructure and energy.
This included a $4bn agreement signed in December with China Communications Construction Company for the Mubarak Al-Kabeer Port project.
The MPW invited bids for the expansion of the Kabd facility in 2022.
Plans for the North Kabd sewage treatment plant (STP) were first announced in 2013, according to regional project tracker MEED Projects.
The initial plan included two STP units with a total combined capacity of close to 500,000 cm/d, in addition to an upgrade to an existing plant.
Kuwait has been investing significantly in wastewater infrastructure to address challenges in reusing treated sewage.
In February, Saudi Arabia’s Acwa and local financial institution Gulf Investment Corporation signed a contract with Kuwait’s Ministry of Electricity & Water, confirming the long-term offtake arrangements for the Al-Zour North independent water and power plant (IWPP) phases two and three.
The integrated facility will have a net power generation capacity of at least 2,700MW and a net desalinated water capacity of at least 545,520 cm/d, making it the largest IWPP ever undertaken in the country.
The Kuwait Authority for Partnership Projects and the Ministry of Electricity & Water are also tendering phase one of the Al-Khiran IWPP.
The estimated $200m project includes an 1,800MW power plant and a desalination facility with a capacity of 568,000 cm/d.
Bids were submitted for the project in June.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17794972/main.jpg -
Abu Dhabi tenders urban development consultancy deal
29 July 2026
Abu Dhabi’s Department of Municipalities and Transport (DMT) has issued a tender inviting consultants to bid for an integrated consultancy services contract for upcoming works in the capital.
The scope includes the provision of integrated consultancy services across two streams – project management consultancy and secondment – covering stormwater, parks, roads and bridges programmes in Zayed City and Mohammed Bin Zayed City.
The contract duration is two years. Consultants have until 3 August to submit their proposals.
The project is one of a series of major infrastructure schemes being overseen by DMT in Abu Dhabi.
Earlier this month, DMT announced the E20 highway expansion project.
The scheme covers widening the main carriageway from three to five lanes, constructing more than 10 kilometres (km) of new ramps and loops, and building four bridges.
Works also include 1.5km of internal roads and the addition of eight signalised junctions across Khalifa City and the Zayed International airport precinct.
The project includes utility works, comprising 62km of stormwater drainage, 37km of irrigation networks and the installation of 485 streetlights.
Separately, DMT is evaluating bids for a design-and-build contract to construct two bridges serving Hudayriyat Island in Abu Dhabi.
The scope includes a two-lane bridge connecting 32nd Street to Shakhbout Bin Sultan Street, and a single-lane bridge on 8th Street. It also includes upgrades to signalised intersections.
Shakhbout Bin Sultan Street is a two-way road with three lanes in each direction, providing access to and from Hudayriyat Island.
READ THE AUGUST 2026 MEED BUSINESS REVIEW – click here to view PDFSaudi Arabia builds for the global stage; Rising uncertainty creates fresh set of challenges in the Maghreb; Gulf banks remain robust in the face of geopolitical tensions.
Distributed to senior decision-makers in the region and around the world, the August 2026 edition of MEED Business Review includes:
> WORLD CUP: What the 2026 World Cup means for Saudi Arabia 2034> MARKET FOCUS: Maghreb fortunes diverge> INDUSTRY REPORT: GCC banks prove resilient amid turmoil> LEADERSHIP: Private capital and the GCC infrastructure inflection> INTERVIEW: Developers look beyond standalone solarTo see previous issues of MEED Business Review, please click herehttps://image.digitalinsightresearch.in/uploads/NewsArticle/17797254/main.jpg